A Guide to Property Damage

One of the most frustrating things for our clients that are involved in a motor vehicle accident is the damage to their vehicle that results from the accident. This brochure has been put together to help you with common property damage scenarios that take place when you are involved in a motor vehicle accident. Every motor vehicle accident is different. Your property damage claim will be different too. The following information is designed to inform you of some of the terms and situations you MAY encounter as you deal with the insurance company in trying to resolve your property damage claim.

When you are involved in a motor vehicle accident, you should be focused on getting the proper medical treatment for you or your loved ones. The last thing you want to deal with is the damage to your motor vehicle that resulted from the accident. This damage is most commonly referred to as Property Damage and can really be difficult and seem unfair. Your car is worth more to you than it is to the insurance company.

THE FOLLOWING ARE TWO OF THE MOST COMMON SCENARIOS THAT MAY OCCUR DURING YOUR PROPERTY DAMAGE CLAIM:

SCENARIO ONE:

The defendant’s insurance company accepts liability or responsibility for their insured causing the accident and agrees to take care of your property damage. They will usually send an appraiser out who will look over your vehicle and determine in his/her opinion if your vehicle is worth repairing and write an estimate for the repairs, or if it is a Total Loss. You may take your vehicle to a repair shop of your choice to get a second opinion.

If your vehicle is declared a Total Loss, the insurance company will make you an offer for what they deem as the Fair Market Value. You can compare their offer at the following website www.nada.com. This website can help you find the value of your vehicle by plugging in certain information about your vehicle. Some of the required information would be mileage, special features, air conditioning, radio and any other equipment on your vehicle. If the insurance company decides your vehicle can be fixed, you can decide where you want to have the repairs completed. At this point, the repair shop should work with the insurance company on the repairs and any supplements.

During this time period, the insurance company should provide you with a comparable rental car until your car is fixed or they declare your car a Total Loss and extend an offer of settlement on your vehicle. REMEMBER, YOU MAY KEEP YOUR VEHICLE.

When getting the rental car, make sure to double check what the insurance company will pay for. Most insurance companies WILL NOT pay for any extra insurance that you may elect to get or the necessary insurance coverage required by the Rental Company, nor will they pay for gas or mileage.

IN AN IDEAL WORLD, YOU WOULD THINK THAT THE INSURANCE COMPANY FOR THE PERSON RESPONSIBLE FOR CAUSING THE ACCIDENT WOULD IMMEDIATELY HELP TO RESOLVE YOUR PROPERTY DAMAGE. SOMETIMES THIS JUST ISN’T THE CASE. UNFORTUNATELY, YOU MAY HAVE TO DO THE FOLLOWING:

SCENARIO TWO:

What do you do if the insurance company tells you that they are investigating the accident and will let you know when they have made a decision? Hopefully, you have property damage coverage on your personal automobile policy (CHECK THE DECLARATIONS PAGE OF YOUR INSURANCE POLICY OR CALL YOUR AGENT TO CONFIRM). Your declarations page is the part of your insurance policy that specifies WHAT insurance coverage you have purchased on your vehicle or vehicles.

If you do have property damage coverage on your policy, then you may do the following:

• Report the accident to your insurance company as soon as safely possible after the accident.
• Tell them that the other person’s insurance company is investigating the claim and that you would like them to handle your property damage. This will speed up the process of getting your vehicle taken care of quicker than if you were to wait for the other insurance company. At this point, YOUR insurance company should take over the handling of your property damage claim.

THERE ARE A COUPLE OF DRAWBACKS TO DOING THIS.

If you use your property damage coverage, your automobile policy may not provide for a rental car. This means you will not have a car until yours is fixed or they declare your car a Total Loss and give you a check for the Fair Market Value. Also, if you have a deductible on your policy, they will subtract that amount from either the repair bill or the Total Loss amount.

Remember, if the insurance company declares your car a Total Loss, you still have the choice of keeping it. This means the check they give you will be less the Salvage Value of your vehicle. Once the other insurance company accepts responsibility for the accident, your insurance company may try and get you reimbursed for the rental car and your deductible. You will not get the Salvage Value back if you choose to keep the vehicle. If you do not have property damage coverage on your insurance policy. . .Well . . .Unfortunately, you are at the mercy of the other insurance company and their investigation. Any repairs or rentals will be out of your pocket.