Assuming the accident is the other person’s fault, having your car repaired or replaced can lead to many questions. This report will answer some of those questions.

1. What should I do first?

Make sure you notify your own insurance company first. They will usually help you find out who the other person’s insurance company is and will likely work with you to get that company to accept liability for the collision. Your company is usually more than happy to do this, as they want to ensure that they do not have to pay for the car.

Immediately get all personal items out of your car. Often the car is moved and destroyed quickly.

Take pictures of your car. Some insurance companies will try to dispose of your vehicle as quickly as possible if the car is totaled.

2. Who pays for the damage to my car?

As long as the other person has insurance and is at fault for the accident, his insurance company will ultimately be responsible for paying for your car. It may take some time for the other company to complete the process of accepting fault. The company is entitled to investigate the collision for a reasonable period of time prior determining fault and paying a claim.

3. What if the other person’s insurance is stalling?

If the other person’s company does not pay after a reasonable period of time, you can elect to have your own company pay for the car if you have collision coverage. This usually involves paying a deductible, which you will be repaid when the other person’s insurance company pays the claim and reimburses your company.

If the other insurance company does not accept fault, you will have to file suit against the driver who caused the accident in order to recover the cost of the damaged property.

4. Who pays storage and towing costs?

Ultimately the person who caused the collision is responsible for these costs. However, you may need to pay to have your vehicle moved if it is incurring excessive storage costs. You are responsible for minimizing cost if possible and could be responsible for excessive costs if you do not move your vehicle.

Make sure you keep receipts for towing and any storage. The insurance company for the at-fault party should pay for these.

5. Who decides if my car should be repaired or if it is a total loss?

Whether a car is “totaled” depends on both the value of the car as well as the amount of damage. If the damage to the car is more than the car is worth, then it is a total loss, even if the car can still be driven. Most insurance companies consider a car totaled if the cost to repair the car exceeds 70% to 80% of the value of the car. In other words, if your car was worth $10,000 prior to the accident and the repair estimate is $8,000, then the insurance company will likely consider it a total loss and pay you the value of the car.

If the insurance company determines that your car is a total loss, you may still want to keep the car. If you elect to keep it, then you will have to deduct the salvage value (how much the insurance company gets for the totaled car) from the amount the insurance company is paying you.

6. What if I think the car is worth more than they have offered to pay?

The value of a particular car is determined according to industry standards. N.A.D.A. and Kelly’s Blue Book (www.kbb.com) will give you very accurate estimates of what your car is worth at the time of the collision. The insurance company may be willing to negotiate if you have good documentation to support your valuation.

7. What if I owe more on my car than the insurance company will pay?

Unfortunately, the insurance company is only required to pay you the value of the car. What you owe does not change what the car is worth. If you have gap insurance, that policy may make up the difference between what you owe and the car’s value.

8. Can I choose where to have my car repaired?

Yes. You do not have to use the repair shop the insurance company wants you to use. If your body shop charges more than what the insurance company estimated the repair costs to be, the insurance company still has to pay for the repairs. Make sure your body shop has the name of the insurance company responsible for paying for the repairs.

9. When am I entitled to a rental car?

If your car is a total loss and is no longer drivable, the insurance company is required to provide you a rental car (comparable to your car) up until a reasonable time after they pay you for the value of your car. A reasonable time usually means one or two days for you to go purchase another car. You must give the rental back or pay for it yourself after this time.

If your car is repairable, then you are entitled to a rental car while your car is out of commission and when it is in the shop being repaired.

10. What if the person who hit me does not have insurance?

You must rely on your own insurance and get paid under your uninsured motorist coverage. In this case, you do not have to pay a deductible, and it will not affect your insurance rates. Even if you only have liability insurance on your vehicle, you can get paid for the damage to your car. You only need to rely on your collision coverage when an accident is your fault.

Getting your car repaired or replaced after a collision can be frustrating and time consuming. We will be glad to answer any questions you may have.