Car Accidents and Property Damage: Repair vs. Replacement

Getting your vehicle repaired after an auto accident can take a long time when you have to wait for the insurance company. Your insurance company may need you to get multiple estimates and have the insurance adjuster approve the cost of repairs. A property damage claim can take longer when there is a dispute over who was responsible for the accident. 

Property damage and personal injury claims can depend on state law. If you were in a car accident with severe vehicle damage, talk to a local car accident lawyer for legal advice. 

Who Pays for Property Damage in a Car Accident?

In most car accidents, the at-fault party is responsible for paying for property damage. Property damage liability is generally based on negligence. If another driver breaks the traffic laws and causes an accident, the driver (or the driver’s insurance company) is liable for damages. In a motor vehicle accident case, you can file a lawsuit against the other motorist to recover money to pay for your damages. 

Some states have personal injury protection (PIP) insurance coverage. In these no-fault accident states, your own insurance company pays for your medical expenses. However, no-fault accident laws generally don’t apply to property damage. The other driver’s insurance will generally have to pay for your property damage if they were at fault for the accident. 

Will the Insurance Company Repair or Replace Your Car as a Total Loss?

Your auto insurance company will determine when to replace and when to repair your vehicle accident. This can be based on various valuations. Generally, the insurance adjuster will evaluate the vehicle repair costs compared to the vehicle’s actual cash value. 

If the repair costs are more than a certain percentage of the vehicle’s value, the insurance company declares the vehicle a total loss.

What Options Do I Have if My Car Is Considered a Total Loss?

If the car insurance company finds your vehicle a total loss, it may pay you the fair market value minus any deductible. The insurer will then take possession of the vehicle. In some cases, you may want to keep your vehicle. If you want to keep the vehicle instead of taking the insurance offer, it may have a salvage title. It can be harder to sell the vehicle or get insurance on a totaled vehicle.

When Should You Use Your Own Collision Coverage?

Most states only require drivers to possess a minimum level of liability insurance. This covers injuries and property damage when you are liable in an accident. Collision coverage will pay for your vehicle repairs in a collision, regardless of who was at fault. However, collision is usually an optional add-on, like comprehensive coverage. 

If you were at fault in the accident, your collision policy will cover your repairs minus the deductible. If the other driver was at fault, your insurance company may be able to recover the deductible from the at-fault driver so that you won’t pay anything out of pocket. 

Can You Avoid Reporting the Accident for a Minor Fender Bender?

The driver may not want to go through the insurance companies in a minor accident. It could increase your insurance premium, and the damage may not even raise your deductible. However, before handling an accident off the books, be aware of the risks. 

Your state may require you to report the accident if anyone is injured or damage is over a certain value. Your insurance company may also require reporting any accident, even if you don’t want to file a claim. 

A more serious risk may depend on what happens after you leave the accident scene. The other driver may later report you for a hit-and-run or blame you for a much more severe accident. Reporting an accident can help protect you against fraudulent insurance claims by the other driver. 

Who Pays for Damages With an Uninsured Driver?

An uninsured driver is still liable for damages if they caused the accident. However, if the driver doesn’t have insurance, they may not have the money to pay for your car repairs. Uninsured or underinsured motorists (UM/UIM) can cover repairs for your damaged car and medical expenses. Some states require UM/UIM coverage, but in others, it is optional.  

What Happens if Injuries Develop After the Accident?

Many people involved in a car accident think they are fine and haven’t suffered any injuries. However, car accident injuries are deceptive. Head, neck, and back injuries can take hours or days to develop. If there is any chance you suffered injuries, get medical attention. Your property damage accident may suddenly turn into a personal injury case.

When Should You Talk to a Personal Injury Lawyer?

A personal injury attorney can explain your legal options after a car accident. They can deal with the insurance company and negotiate maximum compensation for your property damage. Your attorney can also file a property damage claim in court to recover damages. Contact a local car accident attorney to discuss your car accident repair claim.