Property Damage FOR MOTOR VEHICLE COLLISION CASES
The property damage (damage to your vehicle) and personal injury claim are two separate claims. We understand that getting your car repaired can be a frustrating experience. Here are some tips to handling the settlement of your PROPERTY damage claim.
DO NOT agree to any recorded statements regarding the accident.
Make sure that any documents you sign pertain only to your property damage claim. Some unscrupulous adjusters might persuade you to sign a general release depriving you of your rights to make a personal injury claim. Property damage is distinct and separate from a personal injury claim. You can always settle the property damage claim before the personal injury claim. Our law firm is handling the personal injury claim for you.
Do not sign a bodily injury release while negotiating your property damage claim. Again, some companies will attempt to obtain a release for personal injury claims when negotiating property damage claims. If you have any doubt about whether the release is proper, please have it reviewed by our law firm. Again, watch for notations on settlement checks.
Before settling your PROPERTY damage claim, we recommend that you do two things;
Take Photographs – take photographs of the damage to your vehicle including a photograph with your license plate number visible. Please forward a copy of these photographs to our office so we can keep it in your file.
Get A Repair Estimate – take your vehicle to your own repair facility, normally the dealership of the make of your vehicle, to get a repair estimate so that you can have a general idea of the damage to your vehicle and the repair costs. The insurance company will likely pay you less than this estimate based on their ability to negotiate lower repair costs, however, should your personal injury/bodily injury claim go to trial it is the dealership’s repair estimate we will want to present to the jury. Please forward a copy of this estimate to our office so we can keep it in your file.
WHO IS GOING TO REPAIR MY VEHICLE?
There are 2 options for who will pay to repair your car. The first option is the insurance company of the other driver that was at-fault for the accident. Note that even though the other driver may have been cited as at-fault the insurance company is not required to repair your vehicle if they dispute the liability. If the other insurance denies liability and refuses to pay the property damage, you can have the claim processed through your own insurance company. Do not alter, trade, sell or repair your vehicle while you are waiting for the insurance company (yours or the other) to inspect your vehicle.
If you have collision or comprehensive coverage on your vehicle, you can process the property damage claim through your own insurance. In this case you will be responsible for paying your deductible. Because you would have to pay the deductible, you only want to go through your insurance company if 1) it was a hit-and-run or if the other driver didn’t have insurance, 2) the at-fault insurance company has denied liability and refuses to pay, 3) the other driver doesn’t have enough insurance to pay the full value of your claim, 4) the at-fault insurance company has made an unfair offer to settle the claim. Nevada drivers are only required to carry a minimum of $10,000 for property damage coverage and often times that is not enough, especially in a multiple-vehicle accident.
HOW MUCH SHOULD I RECEIVE FOR MY PROPERTY?
You are entitled to recover the Fair Market Value of your property damaged or destroyed in the accident. Fair Market Value is what a willing buyer would pay a willing seller for the property immediately before the accident.
HOW IS THE COST TO REPAIR A VEHICLE DETERMINED?
The at-fault party must pay for all reasonable and necessary repairs to your vehicle, if it is not a total loss. The insurance company may request that you drive your car to their repair shop to obtain an estimate of damage. If your vehicle was badly damaged, the insurance will usually send an adjuster to inspect your vehicle at its current location. You must provide any necessary information that they request. You may get your car repaired at the repair facility of your choice; you cannot be required to have repairs made at any particular shop. However, do not begin repairs until the insurance company has completed their inspection.
THE ACCIDENT WAS THEIR FAULT. WHY CAN’T I GET A RENTAL CAR?
This is a common source of frustration. You know the accident wasn’t your fault, but the other driver’s insurance company won’t “accept liability” and put you into a rental car. This is usually because the carrier has not been able to contact their insured driver to obtain their version of the accident. The insurance company has a contractual obligation to their insured to investigate prior to paying benefits. Normally this entails getting their driver’s version of events, even in clear liability collisions. The best way to get around this is to get a rental under your own collision policy, if it is covered, or to pay out of pocket for a rental and get reimbursed once liability is accepted.
Most rental agencies requires a credit card in order to rent a vehicle. Sometimes a person can get into a rental without a credit card but this occurs only with certain insurance companies and their car rental agencies. Thus, if you do not have a credit card, you may not be able to rent a vehicle.
The insurance company will only rent the vehicle to the owner of the damaged vehicle. For example, if you are in a friend’s car or your parent’s car, the insurance company will only pay for a rental for your friend or parent, not for you. If your car is damaged, but driveable, then you are only entitled to a rental vehicle when your vehicle is taken to the shop for repairs. You must make sure that the parts are in the repair facility to fix your car. You will not be paid for a rental car while your own vehicle sits waiting for parts to come in.
I GOT A RENTAL CAR. HOW LONG CAN I STAY IN IT?
You will normally be entitled to a rental until the repairs to the vehicle are completed or until the insurance company issues you a payment for the total loss of the vehicle. If there is a delay in this process, sometimes the insurer will agree to a reasonable extension of the rental to allow for it.
THE VEHICLE IN THE ACCIDENT WAS A TRUCK, BUT THEY WANT ME TO TAKE A COMPACT AS A RENTAL. CAN THEY DO THAT?
No. The rental should be a vehicle comparable to the one it is intended to replace. This is often important where the driver needs a particular type of vehicle for work or business. The insurance company should at least provide a rental that is suitable for the same purpose as the car that was damaged. Now, you do not want to cut this too thin by demanding the exact same car on every level. Reasonableness should carry the day. But it should be the functional equivalent of the car that is damaged or totaled.
DO I HAVE TO USE THE INSURANCE COMPANY’S REPAIR SHOP?
No. You can have your vehicle repaired anywhere you choose. The insurance company will only pay what it thinks is the reasonable cost of repair, however. If the repairs run over price, or additional work is required, the shop will have to get approval from the insurance company.
Additional FAQ’s about Property Damage and Personal Injury cases can be found on our website at drummondfirm.com