Settling Property Damage Part of the Claim
How Much Do I Get For My Property?
You are entitled to recover the Fair Market Value of your property that was destroyed in the accident. Fair Market Value is what a willing buyer would pay a willing seller for the property immediately before the accident. Factors that go into this determination include the year, make, mileage, previous damage and general condition of your vehicle prior to the accident.
There are various sources of information to help determine Fair Market Value, such as:
- The NADA Used Car Guide
- Computerized market guides
- Recent sales of similar vehicles
- Ads from newspaper or auto trader magazines
- Asking or sales prices from dealers.
Service receipts, repair receipts and maintenance records are useful when trying to establish the value of your car. It is important to have these available when negotiating the value of your vehicle with the insurance company.
Property damage includes damage to your vehicle, its contents, and even clothing you were wearing in the accident. To claim compensation for damaged or destroyed property, you must be able to show that the property was actually damaged in the accident. It will also be necessary to prove the fair market value of destroyed property.
Who Pays to Fix My Car?
You can submit a claim for property damage compensation to the insurance company of the driver who was at fault in the accident. Usually, that company will pay for the damage to your vehicle and other property lost, destroyed or damaged in the accident, unless they are contesting who was at fault in the accident. If you do this, be very careful that any release you sign pertains only to property damage, and does not affect any injury claim you may have. It is advisable to have an attorney review ANY release document or settlement check before signing or cashing.
Alternatively, you may submit a claim to your own insurance carrier for the damage to your vehicle. You can generally do this only if your policy includes "collision" coverage on the vehicle.
The main advantage of having your insurance company pay a property damage claim is that it may pay this claim more quickly than the at-fault driver's insurance company. If your own insurance company pays the claim, it may be reimbursed at a later time by the at-fault driver's insurance company.
It may be necessary to file a claim with your own insurance company under the following circumstances:
- The accident was with a hit-and-run driver.
- The insurance coverage of the person at fault is not enough to cover your damages.
- The at-fault driver had no insurance coverage.
Even if you settle with your own insurance company, you can still seek reimbursement from the at-fault driver's insurance for any deductibles or other uncovered equipment or property damaged or destroyed in the accident.
Is the Car Repairable or a Total Loss?
The fair market value of a vehicle is its value immediately before the accident. The salvage value is its value immediately after the accident.
A vehicle is considered a total loss if the repair cost PLUS salvage value is more than its fair market value. If the vehicle is not a total loss by this standard, then the insurance company will generally pay to have your car repaired.
The insurance company usually will obtain bids from auto wrecking companies that want to buy your car for its scrap value. If your car is considered a total loss, you may be able to buy back the salvage. The salvage value of car will be deducted from the market value of your car. In that event, you may need to apply for a salvage title from your states motor vehicle department.
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 location. You must provide any necessary information that they request.
You should not necessarily accept their estimates, but should obtain up to three different estimates on your own. 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.