Vehicle Damage in Car Accident Claims & Lawsuits
Many drivers emerge from a car accident thankful to be unhurt but still facing concerns about paying for vehicle repairs. Most insurance policies will cover vehicle damage up to the stated limits, although coverage details and eligibility depend on multiple factors. Insurance options such as collision, comprehensive, and uninsured or underinsured motorist property damage coverage may come into play. Understanding these rules, the claims process, and specific legal considerations can help navigate repair costs, address diminished value, and handle vehicles declared a total loss.
Fault Systems and Property Damage
A driver seeking compensation generally must prove that another party’s negligence caused the crash. Comparative fault rules usually determine how much compensation a driver can receive if they contributed to the collision. Under a modified comparative fault approach, a driver who is partially at fault can recover damages reduced by their percentage of fault, but only if they’re not at fault to a certain degree. Some states follow a pure comparative fault system, which allows a driver who is even mostly at fault to recover a reduced amount. A few states have contributory negligence rules that prevent a driver from recovering damages if they were at fault to any degree.
Types of Insurance for Vehicle Damage
Basic liability coverage pays for damage caused by a policyholder to someone else’s property but does not cover the policyholder’s own car. Many drivers purchase collision coverage, which pays for damage to their own vehicle after colliding with another vehicle or object, regardless of fault (subject to any deductibles). Collision coverage generally also applies in rollover accidents or when the other driver is uninsured. Comprehensive coverage pays for damage unrelated to typical driving hazards. Examples include weather events, falling objects, vandalism, theft, and contact with animals.
Uninsured and Underinsured Motorist Property Damage
In some areas, drivers can purchase uninsured or underinsured motorist property damage coverage. This coverage can protect a policyholder if the at-fault driver does not have sufficient liability coverage to pay for the damage. In states where this option is offered, it may allow a policyholder to recover compensation for repairs without waiting on a party who lacks adequate insurance. This coverage can function separately from, or in addition to, collision coverage and typically carries its own deductible.
Navigating the Claims Process
Once an accident is reported, the insurance company assigns a claims adjuster to inspect the damage and prepare an estimate. Although an insurer may recommend a repair shop, drivers are generally allowed to choose any repair facility. An adjuster’s initial repair estimate may differ from the estimate of the driver’s chosen mechanic. The repair shop and insurer often negotiate directly to settle on the final cost of repairs. If the adjuster’s offer does not reflect the fair market cost of repairs, the driver can seek multiple estimates from different shops to support a higher claim. When negotiations fail and the insurance company refuses to cover legitimate expenses, consulting an attorney may be considered.
Subrogation and Potential Recoveries for Insurers
If a driver uses their own collision or uninsured motorist coverage to pay for repairs, the insurance company may later pursue the at-fault driver’s insurance through a process called subrogation. This allows the policyholder’s insurer to recover amounts it paid out if the at-fault party’s policy covers the damage. Subrogation does not typically require further action by the driver once their claim is paid.
Understanding Diminished Value
A vehicle that has been professionally repaired after a crash may still be worth less than it was before the accident. This loss in value is commonly known as diminished value. In many states, a driver may pursue a diminished value claim against the at-fault party’s insurance. Proving diminished value usually involves a formal appraisal by a specialist who considers factors such as the nature of the repairs, the car’s condition, and general market trends. Most states do not allow drivers to claim diminished value under their own collision coverage. State-specific rules can affect the documentation required and whether insurers must consider these claims.
When a Vehicle Is Declared a Total Loss
A vehicle is declared a total loss when repair costs exceed its actual cash value. The insurance company compensates the owner based on the vehicle’s value immediately before the collision, factoring in age, mileage, and condition. Policies sometimes allow for replacement of a totaled vehicle with a similar make and model, but these policies often carry higher premiums. In many situations, the insurer gains ownership of the totaled vehicle. If the owner chooses to keep it, the insurance payout is reduced by the salvage value, and the vehicle may be issued a salvage title.
Compensation for a Rental Car (Loss of Use)
When a car is in the repair shop, a driver may be entitled to reimbursement for rental expenses under the at-fault driver’s liability policy. This coverage generally applies to a vehicle of comparable value, for a reasonable amount of time while repairs are completed. The per-day allowance can vary, and any added costs may become the responsibility of the renter. When using one’s own policy, the driver must have previously purchased rental reimbursement coverage for that benefit to apply.
Paying Lenders When a Car Is Totaled
If a vehicle is totaled and the driver still owes money on a loan or lease, the insurance company’s payout may be lower than the balance. The driver remains responsible for paying off that difference. Some policies include gap coverage, an optional protection that covers any unpaid portion of the loan or lease that exceeds the car’s payout value. Gap coverage is helpful when a car’s replacement value has fallen quickly due to depreciation or when a high loan balance remains.
Documentation and Evidence
Preserving evidence is crucial for a successful property damage claim. Photographs of the accident scene, witness information, police reports, and detailed repair estimates help establish the facts and substantiate a claim. Maintaining receipts for any rental car expenses, towing fees, or repair costs can also be useful if questions arise about compensation.
