WHAT TO DO ABOUT PROPERTY DAMAGE TO YOUR CAR, TRUCK OR OTHER VEHICLE

1.      If the at-fault driver is insured, you may collect from his/her insurance company directly.  If the at-fault driver was uninsured, you may collect from your own insurance if you have Collision / Comprehensive coverage or Uninsured Motorist Property Damage (UMPD) coverage.

If you had no Collision Comprehensive or UMPD insurance, unfortunately, you must arrange to pay for your own vehicle damage.  Whatever you do, don’t try to collect personally from the other driver without involving an attorney.  Insurance companies have argued that acceptance of any payments from the at fault party can be construed to be a release of your claim for personal injury, as well.

 2.                  In addition to the cost of repairing or paying a total loss settlement on your vehicle, you are entitled to the fair, reasonable cost of obtaining a substitute vehicle.

You can borrow, hire, or rent a comparable vehicle at a reasonable fee. Insurers may authorize you to get a vehicle from someone like Enterprise, Hertz or other rental agency and they’ll guarantee the payment to rental agency. They normally have negotiated a special rate.

 You are entitled to the cost of the substitute vehicle for:  (1) the time required to repair your vehicle, including time spent waiting for repair parts to arrive. OR:  (2) the time it takes to get a fair appraisal on your vehicle it is a total loss. (Such appraisals generally take about 5 to 15 days.)

 3.                  If your vehicle is a “total loss” the other driver’s insurer is legally obligated to pay the fair market value of your vehicle at the time of the collision. If you owe more than the vehicle is worth, unfortunately, it is your loss. The law does not require anyone to pay more than the damaged property is worth.  Fortunately, many people purchase Gap Coverage when they finance their vehicle that pays off your loan if you are in this situation.

 Today’s selling schemes (“fresh start” programs, dealer financing, etc.,) typically allow people to buy vehicles with little down payment, but at a higher-than market price and at a higher interest rate. Thus, when the buyer has a total loss, he discovers that he paid too much for the vehicle and owes more than it is worth. This situation is unfortunate, and there is very little we can do to “cure” a bad car deal.

 IF YOU ARE INVLOVED IN A CAR ACCIDENT AND SUFFER PROPERTY DAMAGE:

   A.     Immediately determine where you want your vehicle repaired, and if it repairable.

   B.      If your vehicle is a “total loss” immediately shop around to find a vehicle like yours, to discover the market value of your vehicle. Finding a comparable vehicle as a “guide” is the best way to determine if the insurance company’s offer is fair. We recommend internet sites like www.cars.com or www.autotrader.com to find comparable vehicle prices.  Sites like www.nadaguides.com and www.kbb.com do not work because they often include a profit margin in the price.

   C.      Locate a substitute vehicle. You can rent a comparable vehicle, or borrow one from a friend or relative-as long as the owner agrees (in writing) on a reasonable price for its use.

Most insurance companies get appraisals, for repair costs or total loss. However, if their offer appears unfair, let us know.  We may be able to assist in settling your property damage claim for more reasonably and soon.  

Contact our attorney if you have questions about Vehicle Property Damage Insurance Claims.