Who pays for my car repairs? Who pays for my rental car? When you’ve been in a car accident, you have questions and concerns. We understand being without your car can add to the frustration and confusion.

 
Below is helpful information regarding property damage claims, getting a rental car, and what happens if your car is a total loss. This information is not intended to be used as legal advice. Every case is different and you should contact your car insurance representative with questions specific to your case.

Who pays for my car repairs?


There are two ways to receive payment for property damage – through your own insurance company or through the at-fault party's insurance company. The fastest and easiest way to pay the repair is through your own insurance company. If you purchased collision coverage on your policy, your insurance company will pay for repairs after you pay the deductible. The deductible may be reimbursed later by the party at-fault.

You also can present the claim to the insurance company of the person at-fault for the accident. If you choose this option, you may face significant delays in fixing your car. The at-fault party's insurance coverage should pay for your repairs, including the deductible. But even if the other driver was cited for the accident, the at-fault party’s insurance company is not required to repair your car if the insurance company disputes liability. Insurance companies are disputing liability, even when their driver has been cited. If the company does deny your property damage claim, you can have your property damage claim processed through your insurance or you can file a lawsuit.

Also important to remember is that if the other driver’s insurance company is not on the police report or is unidentified, it will take longer to process the claim. Once the other driver’s insurance company has been identified, it could take more than 30 days before the car has been inspected. During this time period, you must not repair the car yourself because the other insurance company has to be able to first look at the car. It is helpful if you have photos and an estimate of the damage. They can be forwarded to the insurance company and it usually helps in the processing of your claim.

How do I get my car repaired?


The insurance company will inspect the damage so that you can make arrangements to fix your car. Most auto insurance companies have a "preferred provider" system for car repair. To help control costs, insurers favor certain body shops or mechanics. You can drop off your car at the body shop your insurer suggests and you won't have to haggle over price. Or, you can choose your own mechanic and play the negotiating game. Most repair shops will work from the insurance company estimate. But some shops charge more for labor than the insurance company will pay. In these cases, you will be required to pay the extra labor costs.

What if my car is "totaled"?


The insurance company has the right to declare your car a total loss if the cost of repairing the car is more than the fair market value of the vehicle. The decision to declare your car “totaled” is the insurance company’s to make. If you are in disagreement with this decision, you can process the claim through your own company and apply the deductible. You can also research the Blue Book value online at www.kbb.com <http://www.kbb.com/> .

If the company does declare your car a total loss, it will send you a check for the total loss.  If there is a lien holder or bank through which you had a loan for the car, the insurance company will make the check payable the lien holder and send you the remainder, if there is anything left. If your car is totaled, it is important to remember that the insurance company, even your own, only has to pay the fair market value of the car. An insurance company is not required to give you the replacement value for your vehicle.

My car is damaged and I need transportation. Who pays for my rental car?


Because it does take some time to process your claim through the at-fault party’s insurance company, it is best to go through your insurance company. Check your insurance policy to determine if you have rental car coverage. If so, you can rent a car although you may need to pay the difference between the amount provided under your policy and the actual cost to rent the car. You may be reimbursed later. If the at-fault party accepts responsibility, their insurance may cover a rental vehicle.

It is also important to remember that when you are in the rental car your car insurance policy applies. So you do not have to purchase any additional rental coverage unless you do not already have sufficient collision coverage. This is an extra cost that will not be covered by the insurance company and it is not reimbursable.

Who pays the tow truck fees or storage charges?


If the at-fault driver’s insurance agrees to accept liability, the bills for towing and storage are given to the company. But because it takes some time for the at-fault driver’s insurance company to process the claim, you should pay the storage charges and have the car released from the tow yard. The tow yard has the right to auction the vehicle off if the fees are not paid in a certain amount of time. This means that you may have to process the claim through your own insurance company or pay the storage charges and try to get reimbursement later from the at-fault driver’s insurance company.