Car Accidents

Property Damage Handbook

Your Guide to Handling Property Damage Issues

The property damage claim is one of the most difficult and frustrating parts of a motor vehicle accident case. After an accident in which you were injured, the last thing you want to worry about is: Who' s going to fix my car? or How am I going to get to work?, etc. However, this is an area that requires immediate attention.

The purpose of this information is to answer some of the questions you may have regarding a property damage claim and to educate you in some of the aspects of the law in settling your property damage claim. While the information answers questions to the most common problems that arise in all property damage claims, you may have a problem that is not addressed.

If you or a loved one have been involved in a motor vehicle accident, and have additional questions or concerns, call us now at 1-800-THE-EAGLE (1-800-843-3245). You may have a valid claim and be entitled to compensation for your car accident injuries.

If the accident wasn't my fault, is it necessary for my insurance company to be involved?

Sometimes. If the defendant's insurance company has accepted liability or if you do not carry collision coverage on your own policy, then normally, the property damage claim is set up through the defendant's insurance company.

If you carry collision coverage and the defendant's insurance company is not cooperating, sometimes it is faster and more convenient to have your own insurance company process your property damage claim. Your insurance company will pay your property damage claim less your deductible and then seek reimbursement from the defendant's carrier to get their money back, as well as your deductible.

If the defendant's insurance company is not accepting liability or they are taking too long to process the claim, then it is in your best interest to use your collision coverage to handle your property damage claim. If you have rental coverage on your policy as well, you may want to use your own insurance to handle that also.

Can I still have my vehicle repaired by my insurance company, even if I don't have the money to cover my deductible?

Perhaps. If the defendant did have insurance, then once liability has been established, we can fax the adjuster a copy of your policy showing the amount of your deductible and request that they forward a check as soon as possible. Most often, this can be done while your vehicle is in the shop being repaired.

If the defendant is uninsured, then unfortunately, you will be responsible to pay your deductible. Ask your attorney about the best way to handle this.

Do I have to pay to get my car out of the storage/tow lot?

Not always. If your vehicle was towed from the scene of the accident, it most likely was towed to a storage facility or tow lot, unless you specified that they take it elsewhere. These facilities charge daily storage fees and they can add up quickly.

If the defendant's insurance company is not questioning liability, normally they will pay the towing and storage fees and tow it to one of their facilities so they can inspect it there. The same is true if you use your collision coverage through your own insurance company. In other words, you should not have any out-of-pocket costs in either situation.

On the other hand, if the defendant was uninsured, or if the defendant's insurance company is not accepting or still investigating liability and you DO NOT have collision coverage, then you are responsible to pay the fees in order to get your car out of storage. Even though you may not have been at fault for the accident, you have the duty to mitigate, or lessen your damages. The defendant's insurance company is only required to pay for a reasonable amount of storage fees. If your vehicle is in storage for an extended amount of time, it is difficult, sometimes even impossible to get the insurance company to pay the entire charge.

Can I choose my own body shop to repair my vehicle once the adjuster has done an estimate on it?

Yes. You can take your vehicle to any repair facility as long as you give them the estimate that the insurance company did on your vehicle and they agree to repair it for the amount shown. If the body shop feels that there may be supplements, or additional damage, they will contact the adjuster listed on the estimate and deal with them directly for authority on these additional repairs.

Am I entitled to brand new parts in the repair of my vehicle?

No. Unfortunately, in most instances you are not entitled to brand new parts. The body shop will use used parts of " Like, Kind & Quality." Most body shops are able to find used parts that are in the same condition, if not better, than the parts on the vehicle before the accident. However, the insurance company can't make you accept any used part that is substantially inferior to the pre-loss condition of the part being replaced.

How does the insurance company determine if my vehicle is repairable or totaled?

If the cost of repairs is less than the market value of the vehicle, the vehicle will be considered repairable. If the cost of repair is greater than the market value of the vehicle, the insurance company will declare the vehicle a total loss and offer you the Fair Market Value (FMV) for the vehicle.

In determining the Fair Market Value, most insurance companies use a computerized search, which takes into account cars identical to yours that are advertised in local newspapers by private owners and evaluations done by local dealerships.

Scheduled maintenance and common repairs will not increase the value of your vehicle. Custom equipment and extensive repairs, such as a new engine, may increase the value of your vehicle. You should have receipts or invoices available to give to the adjuster to prove the vehicle is worth more.

If my vehicle is "totaled," doesn't the insurance company have to pay off my entire loan, no matter how much I owe?

No. Unfortunately, the insurance company only needs to pay the FMV of your vehicle. If you owe more than the FMV, you will be responsible for the difference. If this is the case, you may want to ask your finance company if they might be willing to "roll over" the balance into a new loan for a new car.

Am I entitled to a rental car while I'm looking for a new car or while my vehicle is being repaired?

Yes. If you were not at fault for the accident, then you are entitled to a rental while your car is being repaired or while they are determining the FMV on your vehicle. You can obtain a rental through the defendant's carrier if liability is not am issue, or through your own carrier if you carry rental coverage on your policy. Check your policy to determine the amount of rental coverage available. We can help interpret your policy, if you wish.

The method of payment for the rental car varies with each individual insurance company. Some insurance companies, perhaps your own, will set up a direct bill with a rental car company. In this instance, the rental is charged directly to the insurance company and you do not need a credit card to secure the rental.

Most insurance companies, perhaps your own, operate on a reimbursement only policy. This means that you pay for the rental and then they will reimburse you once you submit the bill to them.

There may be some circumstances however, that could prevent you from obtaining a rental and/or receiving reimbursement for one. For instance, if the defendant was uninsured and you do not carry rental coverage on your own policy, then you will have to pay for a rental on your own and you will not be reimbursed for it.

If the defendant's insurance carrier pays for a rental on a reimbursement policy only, then you will be required to pay for the rental and wait for reimbursement from the defendant's insurance company. If you do not have a credit card, then this may be very difficult to do since most rental companies require a credit card to secure their payment.

Will the insurance company pay for the extra insurance that may be needed for the rental?

No. Neither your insurance company nor the defendant's insurance company will pay for the additional Collision Damage Waiver (CDW) that may be required for your rental. The insurance company is only required to put you back to where you were before the accident. If you didn't have collision coverage before the accident, they are not required by law to provide it for you on the rental.

Normally, if you carry collision coverage on your own policy, it will transfer over to a rental car and you do not need to purchase the extra CDW. You must review your policy to verify that your collision coverage will cover a rental car. We can help interpret your policy, if you wish.

If you do not have collision coverage, then the rental company will require that you purchase the CDW. The amount per day varies, but it's usually between $8 - $12 per day.

If my car is "totaled," am I allowed to keep it?

Yes. However, if you choose to keep your vehicle, the insurance company will deduct from your total loss settlement the amount equal to what their net recovery would have been had they been able to take your vehicle and sell it to a salvage buyer. In other words, they will pay you the FMV of the vehicle minus the salvage value.

If the registered owner wishes to retain the vehicle, a Salvage Title (for an inoperable vehicle) or both a Salvage Title and a Restored Salvage Title (for an operable vehicle, or a vehicle which has been restored to an operable condition) must be obtained and sent to the adjuster before the insurance company will settle the total loss claim or the vehicle can be disposed of.

These documents are issued by the Department of Motor vehicles, and ensure that any future buyers of the vehicle are made aware that the vehicle was once declared a total loss.

How do I obtain a Salvage Title?

To obtain a Salvage Title on a vehicle that is not operable or not going to be driven, the registered owner takes the following items to the Department of Motor Vehicles:

1. The vehicle' s title (properly endorsed);

2. Lien release from the lien holder listed on the title, if applicable;

3. The vehicle's registration certificate or card, if applicable;

4. Photo identification;

5. The vehicle's license plates. If there are no plates, the owner must supply a notarized statement stating that the plates were lost or stolen;

6. $4.00 fee.

If the vehicle can be driven or you wish to repair it to an operable condition, then a Restored Salvage Title must be obtained once the vehicle has been repaired.

To obtain a Restored Salvage Title, you must also present:

1. The vehicle, for a physical inspection to confirm its roadworthiness;

2. $4.00 fee.

Once the vehicle is restored to an operable condition, the registered owner obtains a temporary operating permit. This allows you to operate the vehicle and bring it to the Department of Motor Vehicles. The vehicle will then be physically inspected to confirm it is roadworthy before the actual Restored Salvage Title is issued.