If you have been involved in a car accident which damaged your car, one of your immediate concerns will be getting the car repaired or replaced (if deemed a total loss). You might also need to arrange for a rental vehicle while your own car is being repaired. This article will address all these issues and provide guidance.
Let us first consider the question of who pays for damage to your vehicle in a car accident. The first consideration is liability. Who is responsible for the car accident? Determining fault is the key. If the other driver is liable for the accident, their insurance will be responsible for your car’s repairs. This will include towing your car to the repair shop if the car is no longer drivable. In Oregon, the law prohibits the other side’s insurance company from requiring you to get the repair done at a specific auto body shop. You have the right to select the shop where you want your car repaired. But there is a caveat. In Oregon, an insurance company must work with repair shops within their “network” to make sure your car is returned to you in the condition it was before the accident. However, if you take your car to a shop that is outside the insurance company’s network, they are not responsible for the quality of the repairs. It is wise to conduct your own due diligence if you wish to have your car repaired in a shop outside the insurance company’s approved shops.
If you are at fault for the accident or liability is being disputed or denied, you may need to turn to your own insurance company to pay for the repair expenses. Generally, your insurance company will only cover the cost of repair for the other vehicle. However, if you purchased collision coverage as part of your auto insurance policy, damage to your own car will be covered. Collision coverage is an optional coverage you can purchase that pays for the repair or replacement of your vehicle after a car accident, regardless of who is at fault. This coverage would be available to you even if there are no other vehicles involved. For example, if you hit a building, garage, ditch or other stationary objects causing damage to your car. You will, however, be responsible for paying the deductible amount which will usually vary between $250 – $2,500. You should check your insurance declaration page or contact your insurance agent to determine if you have collision coverage and the amount of your deductible. If you don’t already have this coverage, this may be a good time to consider adding it to your policy.
If your car will be unavailable to you for some time while it is being repaired, you may need to rent a replacement vehicle for the duration of the repair. Often, this can be arranged and paid for by the at-fault driver’s insurance company. Oregon laws provide compensation for “loss of use” of a vehicle. But that doesn’t mean getting a rental will be a foregone conclusion. Insurance companies are not interested in making your experience easy or simple and are certainly not in the business of paying for any expenses they think they can avoid. It is common for the other driver’s insurance company to deny rental coverage until they speak with their insured, investigate the car accident, and reach a decision on liability. Unfortunately for you, this process may take days, weeks, or even months. You do have some options in that situation:
- Contact the Oregon’s Insurance Division to file a complaint if the other insurance company is not acting reasonably. Insurance companies are subject to a set of guidelines requiring them to act reasonably. Sadly, these types of complaints infrequently result in swift actions resolving your complaint.
- Your own insurance policy may cover your rental expenses. Rental reimbursement or coverage is not mandatory and will be an optional add-on coverage to your policy. If this is an option you purchased as part of your coverage, you will be able to file a claim with your own insurance company to cover your rental expenses up to the limits specified in the policy. If you are not sure whether you have this coverage, examine your insurance declaration page, or ask your insurance agent.
- Pay the rental expense yourself and seek reimbursement when settling your claim. Sometimes, the only option available to you may be to pay out of pocket for the car rental upfront, and include that expense as part of your settlement demand when negotiating resolution of your case with the other insurance company. Your expenses must be reasonable and comparable to the loss of use. For example, renting a $100 per day Mercedes while your 10-year-old Honda is being repaired and expecting the insurance company to reimburse you the full amount will not be considered reasonable loss of use.
Lastly, if your car is totaled as a result of a car accident that wasn’t your fault, you will be entitled to receive compensation equal to the fair market value of your car. Usually, the insurance company for the at-fault driver will conduct a valuation or appraisal of your vehicle and make an offer based on that report. The decision to consider the car a total loss is left to the insurance company obligated to cover the loss. Total loss determination is usually reached when the cost of repairing the vehicle is deemed impractical. You do have a right to keep your car, if you so choose, and receive a reduced amount from the insurance company. The reduction will equal the salvage value of the car.
If you are not at fault for an accident and the other driver’s insurance is not cooperating, make sure to contact an attorney to review your rights and their obligations. An experienced attorney will hold the insurance company accountable and get you back on track. Call us for a free consultation to discuss your situation.
Other questions you may have after an accident.
Do I call the other driver’s insurance company to report the accident?
Do I file a claim with my own insurance company?
Should I get medical treatment?
Will I be able to get a rental while my car is being repaired?
Will I get a settlement for my injuries?
Who will pay for my medical treatment?
What if I can’t work, who will pay my wages?
