If you were injured in your accident, the chances are good that there was also damage to your property. Damage to your car, truck or other vehicle is the most common type of property damage, but any other property you lost or had to repair because of the accident should also qualify. The same auto insurance policy that covers your injuries should also cover all of your property damage.
Generally, claims of damage to your vehicle fall into two categories. If the insurance company says your car or truck is “totaled,” it means the repair costs are likely to be greater than the actual fair market value of the vehicle. That makes it not worth repairing, at least to the insurance company. (You are free to do what you like with a “totaled” vehicle.) The fair market value of the vehicle is determined by its age, condition, mileage, appearance, depreciation and other factors. Each insurer does this differently, and some take into account incidental costs like storage.
Because car loans and other financial obligations related to the vehicle are not considered in determining fair market value, your car or truck might be considered worth less than the amount you owe for it. This is especially likely with newer vehicles, which depreciate (lose value) quickly within their first few years of use. The insurance company is obligated to pay only the fair market value of the vehicle immediately prior to the accident, not the cost of repairs you made or your original purchase price. A special type of insurance called “gap insurance” is designed for this situation; it pays the difference between fair market value and any loans you still owe. Gap insurance is optional, but insurers often try to sell it to owners of new vehicles.
If the insurance company considers the vehicle repairable, it should pay for repairs by a body shop or a mechanic. Your insurance coverage may pay for your use of a rental car during repairs, or compensate you for the temporary loss of your car or truck. The carrier’s obligation to pay for a rental vehicle will depend on the coverage of your own policy. Or if being paid by the other driver’s carrier then the obligation to pay for a rental vehicle will last a reasonable amount of time. A reasonable amount of time for using a rental vehicle will of course vary according to the unique facts of each case. In Washington, you are free to choose your own repair shop. If you disagree with the insurance company’s estimation of the damage, you can sometimes get a second opinion from another repair shop.
One frequent question we receive is whether your own insurance company or the at-fault driver’s carrier should pay for the damage to your vehicle. Many times the at-fault carrier will promptly pay for the repairs and that should be sufficient. But other times, especially if there’s a dispute about who caused the accident, your own insurance company will be forced to pay.
It may also be advantageous for you to ask your own carrier to pay for the damage because in Washington there are special rules and regulations that require a person’s own insurance company to act quickly. Those same rules and regulations usually do not apply to the other person’s insurance company.
