Dealing with damages to your car after an accident: Part I
/An often misunderstood consequence of getting into an accident is how to resolve the damages to your vehicle. The unexpected loss of a car is one of the most damaging and traumatizing aspects of an accident. It’s not until people are faced with the problems involved in not having a vehicle such as commuting to work, getting the children to school or simply buying groceries that the urgency of dealing with your car damages becomes fully apparent.
Most people who get into an accident usually have two thoughts on how to deal with their damaged vehicle; either they think “The accident wasn’t my fault, my car should be replaced by the other car’s insurance company.” Or “ I have insurance, my car should be replaced immediately”
Unfortunately, neither of these scenarios is usually as clear as people would think. The following information deals with deciding to pursue the other driver’s insurance.
“The Accident Wasn’t My Fault”
In many cases responsibility for an accident is open to the results of an insurance investigation. The length of that investigation depends on a variety of factors including the extent of the damages, availability of witnesses, or whether a police report is available. Even if it turns out that you were not responsible there are many other issues that may come up in repairing your vehicle.
Does the other party have valid insurance?
At the accident site the driver of the other vehicle may provide what appears to be valid insurance information. This doesn’t mean that the vehicle or the driver was insured at the time of the accident. After a claim is reported, the other driver’s insurance company will conduct an investigation to make sure that coverage was valid at the time of the accident. Coverage may be invalid for several reasons including non-payment of premiums. If a coverage issue comes up, this could delay the handling of your damages by days or even weeks and at the end they may determine that there was no valid insurance at the time of the accident.
Will the other party accept responsibility?
Even if the other vehicle had valid insurance at the time of the accident. Their insurance will pay for your damages only if they accept responsibility. Most accidents tend to be clear cut, but if there is any question of who is responsible an adjuster will be assigned to the claim to conduct an investigation and assess liability. While the investigation is continuing, an insurance company is not required to pay for any damages to your vehicle, even though you feel the accident was obviously the other drivers fault. In addition, California applies a comparative negligence approach to determine fault. Under this system responsibility for an accident can be shared among the parties involved, meaning that they will only pay for part of your damage.
Is your car repairable or a total loss?
Once coverage has been established and the other party’s insurance has accepted liability, they will usually present you with options on dealing with your damages. At this point an estimate will be completed to determine the extent of the damages. If the vehicle is repairable, under California law you are allowed to take the vehicle to any shop of your choice, at that point the body shop and the insurance company will negotiate a repair price. In the mean time you are entitled to a replacement vehicle from the insurance company for the loss of use of your vehicle. Many times insurance companies will have pre-approved body shops that allows you to take the vehicle in immediately without the need for an estimate.
If the damages to the vehicle exceed the value of the vehicle then it may be deemed a total loss. If this is the case an insurance company is not obligated to repair your vehicle but instead pay you for the fair market value of your vehicle.
The value of your vehicle is determined by the average price of a similar vehicle in your area. This determination does not take into account any money owed on the vehicle or recent maintenance. Unfortunately, most people are usually surprised at how low the actual value of their vehicle is and many times the price is less than what is owed on the vehicle. This means that once the value of the vehicle is paid to the bank the owner is still responsible for any amount owed which can sometimes run into thousands of dollars. The owner will still have a payment to make for the outstanding amount owed but no vehicle to show for it (This is known as being upside down on a loan).
In conclusion, even if you feel that you were clearly not responsible for an accident there are many reasons why your case can be delayed for days or even months before a resolution is reached. Dealing with an insurance company can be a difficult and complicated process and many times adverse decisions they make regarding your claim can be successfully fought with the right information and evidence.
In the next article we will discuss issues involved in dealing with your damages through your own collision insurance. If you find yourself having difficulty with an insurance company regarding your damages or any other issue, feel free to contact my office for a free consultation.
