My Car is Wrecked. What’s Next?
Many people use their vehicles daily to get to and from their desired destinations and they play an essential role and necessity in everyday life. Unfortunately, even though you may be without a car after an accident, your daily responsibilities, obligations, and family needs does not stop, and life must continue. Something like an auto accident can greatly put a wrench into your well-oiled daily routine and can cause great stress while trying to figure out what to do next. Ultimately, after an auto accident, there are usually two major options for repairing your vehicle and obtaining a rental car: Using Collision Coverage for Vehicle Repair
Collision coverage is a part of an auto insurance policy that covers repairs to the insured vehicle after a deductible is met. For example, if a policy carries collision coverage with a $500 deductible and the vehicle repairs total was $5,000, the insurance company would cover $4,500 of the repairs and you would be required to pay the additional $500.00 when you pick your vehicle up from the body shop after repairs are complete. Your own auto insurance carrier will then submit a subrogation property damage demand to the defendant’s insurance company to get reimbursed for everything they paid out for the property damage, including your deductible. If the defendant’s insurance company accepts liability, your insurance company will be reimbursed for expenses paid under your collision property damage claim and you will be reimbursed as well for your deductible. The good thing about this option and carrying collision coverage on your auto insurance policy is that you are able to have your vehicle repairs handled right away and do not have to wait for the defendant’s insurance company to investigate the claim before accepting liability and repairing your vehicle. This is an awesome option as well if your vehicle is in a tow yard or not drivable and you need your vehicle repaired ASAP.
Using the Defendant’s Insurance Company for Vehicle Repairs:
After an auto accident is reported to an insurance company there are several steps that must occur before they will accept liability and repair your vehicle. First, the insurance company will complete an investigation and obtain several accident details, photos, police information, etc. before they will accept liability. Additionally, the insurance company will have to contact their insured, and/or the defendant driver, to get a statement from them of the auto accident facts. Once the insurance company has completed their investigation and accepts liability, then they will repair your vehicle and provide a rental vehicle during repair. Otherwise, if your vehicle is totaled, they will provide rental coverage while they complete the total loss figures for your vehicle. This option is ideal if your vehicle damage is minor and you are still able to use your vehicle while they investigate. Also, with using this option you do not have to pay for any of the vehicle repairs or rental, unlike using collision coverage and having to pay your deductible.