Who decides whether to repair or replace my car after an accident?
The insurance company typically has the option of deciding whether to repair or replace your vehicle, depending on whether the cost of repairs would exceed the value of the vehicle. If the cost of repairs after a car accident will exceed the vehicle’s value, the insurance company will declare the vehicle as a “total loss” and will purchase your car for its fair market value, as determined below.
How is the value of my vehicle determined by the insurance company?
You are entitled to recover the “fair market value” or the “actual cash value” of your vehicle immediately before the accident. One common source used to estimate fair market value is the Kelley Blue Book. Other sources of information are the local newspaper or the Auto Trader, which may list the for-sale price of cars of the same make, model, and year as yours. If the vehicle is exotic or rare, an expert vehicle appraiser may be necessary to establish the value of your vehicle.
What happens if I owe more on my auto loan than the fair market value of my car?
Unfortunately, the insurance company is only obligated to pay you the fair market value of your car, even if the amount of your auto loan exceeds the fair market value of your car.
What if my vehicle had prior damage before the accident?
If your vehicle had some damage prior to the accident, it may be difficult to establish what portion of the damage is related to the accident itself. Mechanics and auto collision repair experts can assist in proving the age of the body damage or determining when a mechanical failure occurred. They can assist in establishing that the damage was caused by the accident.
What happens to the license and registration fees paid for the car?
You are entitled to be reimbursed for the prorated amount of the license and registration fees for the car that are unused. The insurance company should also reimburse you for tag transfer fees and, in some cases, a prorated amount of sales tax on the actual cash value of the car at the time of the accident.
Am I entitled to a rental car while my car is being repaired?
If you are at fault in causing the accident, or if it is unclear who is at fault, then you must either pay for the rental car yourself or seek coverage under your own insurance policy if rental coverage is available. Many insurance contracts do not provide for rental coverage, so you should contact your insurance agent to determine what coverage exists. If the other driver is at fault, you may demand that the insurance company for the person who caused the accident provide you with a rental car for the time needed to repair your vehicle. You may be required to pay the rental car bill first, with reimbursement coming from the insurance company later.
What type of rental car am I entitled to?
The insurance company must pay for the reasonable cost of a substitute vehicle. What qualifies as a “substitute vehicle” is often a source of dispute, but generally it is considered to be a vehicle of similar quality to your vehicle, within the confines of what is generally available for rent.
Requirement of Proving Fault in Accident Cases
Determining liability in an accident case requires the services of respected accident attorney such as those as the Law Firm. In essence, it must be shown that the recklessness, negligence, or intentional misbehavior of another was what caused your injury. Below are some common types of injuries and the factors involved in proving fault.
- Motor vehicle accidents. Fault can be affected by factors such as drug or alcohol consumption, speeding, illegal turns, driver distraction, passenger involvement, defective equipment, and road or weather activity.
- Slip and fall accidents. The owner or manager of a property has the responsibility of maintaining that property. If they knew and could have prevented unsafe conditions, they may be liable when someone is injured. Such conditions can include flawed or icy walking surfaces, object obstructions, and poor or broken lighting.
- Other kinds of personal injuries. Fault can sometimes be a question of location. If you were injured while trespassing, or you ignored warning signs, the opposing party may have limited liability.
The Law Firm knows that determining fault is not an exact science. Sometimes, it is more a matter of opinion, so make sure your opinion counts. Our personal injury lawyers will help you present the strongest possible case to prove fault for your accident.
Resources on Vehicle Safety and Insurance
The following resources provide useful information regarding vehicle insurance, safety and other consumer information:
Federal Trade Commission Web site provides useful consumer information on purchasing, leasing, or renting vehicles: http://www.ftc.gov/bcp/menu-auto.htm
Insurance Institute for Highway Safety provides injury, collision & theft loss information on recent vehicle models: http://www.iihs.org/
Insurance Information Institute provides answers to consumer’s questions regarding insurance: http://www.iii.org/individuals/auto/
National Safety Council provides information on driver safety, including air bag and seat belt safety: http://www.nsc.org/issues/drivsafe.htm
Consumer Product Safety Commission’s Web site provides information on product recalls and safety news, as well as information on how to report an unsafe product http://www.cpsc.gov/
AAA Foundation for Traffic Safety provides the latest traffic safety news, driver education videos, and resources for both young and senior drivers. http://www.aaafoundation.org/home/
Kelley Blue Book provides a determination of “fair market value” for the replacement cost of a damaged vehicle. http://www.kbb.com/