After a car accident, one of the first things you need to address is getting your vehicle repaired or replaced. This is true irrespective of whether you suffer an injury. If you do suffer a personal injury, our firm will lead you through the process of fixing your vehicle without incurring out-of-pocket costs, as we advance administrative costs on your behalf. If you are not injured but would like your vehicle repaired, we are still happy to speak with you about any questions you may have.
You may be wondering: Is your car a total loss? Where do you take it? Who pays for the damage? Should you go through your own insurance or the other driver’s? What about rental car costs or your deductible? These are common concerns, and making the wrong decision early can result in costly delays or missed reimbursement opportunities. Our law firm has handled over 10,000 car accident cases since 1954. Have questions about car repairs? We know how to deal with insurance companies, protect your rights, and help you get the compensation you deserve for your car.
Call our office today at (202) 331-7227 for a free consultation.
Who Repairs My Car After an Accident?
After a car accident, one of the first questions you may ask is, “Who repairs my car after an accident?” At best, you have two options. The first is the slower option. This option also assumes there is coverage on the vehicle that hit you. If that is the case, you should contact a car accident lawyer at Gelb & Gelb. Then, we send a letter of representation to the negligent driver’s insurer using the information you gathered at the scene. In that letter, we explain that they are legally prohibited from contacting you except to arrange payment for your vehicle repairs. If they go beyond that and question you further, there can be legal consequences. Anything you say may be excluded as evidence in a future trial.
This is a slower option, but it does not require any upfront payment from you. The adverse insurer likely needs to conduct an investigation to determine fault. But if they decide on their own that their insured is responsible for damaging your vehicle, they will generally make that payment without us filing a lawsuit. When this happens, we do not charge a legal fee despite representing you for your personal injury claim. The second option is not always available. If you pay for collision coverage on your insurance policy, you can use that coverage to repair your vehicle through your own policy. The upside to this is that it is generally quicker. The downside is that you will likely have to pay a deductible. Although, you may receive full reimbursement for this deductible.
Understanding Collision Coverage and How It Applies
Collision coverage is not available in every case. This is true whether you are in Maryland, South Carolina, or Washington, DC. It is only available if you paid for it when you bought your coverage. In other words, purchasing collision coverage after your accident will generally not apply retroactively. But if you do have collision coverage, it is available to you regardless of who caused the accident. This should include accidents involving another vehicle or a single-car crash, such as hitting a pole or guardrail. Furthermore, using the coverage should not affect your rates. Rather, your insurer should change your rates depending on whether you caused the accident. Thus, if you are not at fault and use your collision coverage, your insurer should not increase your rates.
On the other hand, if you caused the accident and use your collision coverage, your rates may go up. Using your coverage may trigger a rate increase if it’s the first notice your insurer receives about the accident. Collision coverage is a valuable tool. It can help you get back on track faster than waiting on the other driver’s insurance. But why should you pay out-of-pocket for an accident you did not cause? Next, we will explain why you may get your deductible back.
How Deductibles Work With Collision Claims
If you file a collision claim for your property damage, you usually have to pay a deductible. In some cases, like claims under an Uber or Lyft policy, that deductible can be as high as $2,500. However, it can also be as little as $500, with the mode around $1,000. But again, why pay out-of-pocket for an accident you did not cause? Well, let’s consider an example. Let’s assume you decide to use your collision coverage to repair your vehicle because the other insurance company denied liability or is taking too long. You need your vehicle fixed now. Your deductible on your policy is $1,000 to use your collision coverage. The repairs for your vehicle cost $10,000.
To use your coverage, you pay your insurer the $1,000 deductible, and your insurer pays $10,000 to the collision center to repair your vehicle. You will get your car back as soon as the collision center finishes. However, you are short $1,000, and your insurer is short $9,000. So, your insurer will pursue a subrogation claim against the at-fault party or their insurer. Subrogation is a process where your insurer seeks reimbursement from the at-fault driver’s insurance after paying your claim. If successful, you may be eligible to receive a refund for your deductible and other associated costs. They are incentivized to aggressively pursue this claim because they want to recover their $9,000. This also benefits you because you should get your $1,000 back.
As a side note, if the adverse driver is uninsured, you typically are responsible for paying half of your standard deductible with no chance of being reimbursed.
When You Should Use Your Own Collision Coverage
There is no one-size-fits-all answer to this question. You should consider using your collision coverage if the other driver is uninsured, underinsured, or if fault is disputed. It’s also a good option when you want your vehicle repaired quickly. If you prefer to avoid paying a deductible or risking no reimbursement, you may choose not to use your coverage. Even in a subrogation claim for an accident you didn’t cause, the outcome is out of your control. You’re still taking a risk by trusting your insurer to recover the costs. Then again, there is a risk either way. This is especially true if we need to sue the driver to recover your property damage.
Clearly, this is a complex issue. It is one you should discuss with a car accident attorney to best understand how these rules and insurance policies apply in your unique case.
Subrogation—Getting Reimbursed From the At-Fault Driver’s Insurer
Subrogation is when your insurance company steps into your shoes to go after the at-fault party’s insurer to recover the money it paid for your claim. Generally, it does not involve formal legal steps on the part of your insurance company.
Furthermore, the process your insurer goes through to recover their repair costs and your deductible is not quick. This process can take weeks or even months, depending on the level of cooperation from the other insurer and whether any party disputes fault. The good news is you probably will not have to take legal action to receive reimbursement for paying your property damage claim out of pocket. This is because your insurer assumes this role temporarily to recover the amount it has paid out. However, if subrogation fails—either because the other driver lacks coverage, their insurer denies liability, or recovery is not possible—you may be left covering the deductible yourself.
What If the At-Fault Driver Is Uninsured or Underinsured?
This is a very common issue. If the adverse driver is at fault but does not have insurance, your only recourse will be through your own insurance policy. It is rarely worthwhile to sue someone without insurance coverage. In most cases, even if we are successful at trial, odds are the defendant will not have sufficient assets to cover a judgment. Unfortunately, this leads to hiring a third-party collections agency. This can include garnishing wages, which is a slow process. Therefore, many personal injury lawyers will refrain from taking on a case without auto insurance coverage on either side. However, if you have coverage on your vehicle, you can still make a claim. Again, your policy’s rates should not increase if you did not cause the accident.
Under your own policy, you should file an uninsured motorist claim. This should cover your property damage and your bodily injury claim if you suffer an injury in the accident. You may make this claim even if you do not have collision coverage. This appears to contradict what a quick Google search might suggest. However, over 70 years of first-hand experience handling these claims, along with a client’s personal injury claim, tells us this is feasible.
Can I Choose My Own Repair Shop After an Accident?
Yes, you have the legal right to choose your own repair shop, but we generally do not recommend it unless you have a very specific reason. There are a few reasons why going with the insurance company’s recommendation is the better option. Even if the insurance company insures the adverse driver, meaning you are not their client, your interests tend to align in choosing a good repair shop. And the insurance companies have more experience than anybody in choosing the collision shops. They tend to know which meet the insurer’s quality standards and pricing expectations. The insurer knows if a repair shop tends to let damaged vehicles sit for weeks before starting work. When that happens, you suffer the delay, and the insurer may end up paying a higher repair bill.
Accordingly, your best chance of getting reimbursement for a rental car bill is to select a repair shop that the responsible insurer has suggested and approved. Moreover, while choosing your own repair shop is feasible, it may slow down the process, as the insurer has the right to inspect your vehicle itself. While this theoretically should not take very long, the insurance company may take far too long to organize an inspection. This can delay the time it takes to get your vehicle back by weeks. Worse than a delay, the insurer may argue that your vehicle repair cost was higher than it would have been at a more reputable shop. As a plaintiff, you have a duty to mitigate your damages. Thus, you may become liable for the difference between the insurer’s repair cost and the cost of the shop you select yourself.
Do I Have to Use the Insurance Company’s Preferred Repair Shop?
The best chance you have to get a rental car after an auto accident is if you have rental car coverage on your own policy. In this instance, you may be responsible for a small deductible, which you may also receive reimbursement for later on. However, most claimants do not have rental car coverage. If you did not add rental coverage to your policy before the accident, your best alternative is to use a repair shop preferred by the insurer handling the repairs. If your car is declared a total loss, reimbursement for a rental typically ends once the vehicle is officially deemed a total loss.
What Happens if My Car Is a Total Loss?
If your car is deemed a total loss, the insurance company will pay you the vehicle’s actual cash value, minus any deductible, rather than cover the cost of repairs. You may later be reimbursed for that deductible if your insurer is successful in a subrogation claim. Or, you may not have to pay a deductible at all if you file the property damage claim with the adverse driver’s insurer rather than your own. However, the downside there is that it is probably slower.
Sometimes, it is obvious that your car is a total loss. Your car may not have been worth much to begin with. When that is the case, even repairing minor issues can exceed the car’s value. In other cases, the damage is so severe that restoring the car would require near-impossible work. So, how do we value your property damage claim when your car is a total loss?
Valuing Your Total Loss
Valuing a total loss only happens when the cost to repair your car exceeds its actual cash value (ACV). Once the responsible insurer declares it a total loss, they should issue a check for the car’s market value at the time of the accident. That does not mean they owe you what your car is currently worth, weeks or months later. This amount should reflect the value of your car immediately before the accident, taking into account its mileage, condition, and comparable local sales. A common question is whether you can receive reimbursement if you just covered for an oil change. The answer is no. However, if you paid for an upgraded or aftermarket set of tires, then that increases the value of your car prior to the loss, and you are entitled to compensation for that.
<p>If you accept the settlement, the insurer usually takes possession of the damaged vehicle and issues payment to you or your lienholder if you have a car loan. Additionally, a personal injury lawyer should not take a legal fee for this compensation. If you hire a personal injury law firm like Gelb & Gelb, we represent you for your personal injury claim, not your property damage claim. Thus, our legal fee is measured by your bodily injury claim, not your property damage claim. So, while we guide you through this process as a courtesy, if we are already representing you for your personal injury case, we do not charge an additional legal fee for this guidance.
How Long Does It Take to Repair a Car After an Accident?
The amount of time it takes to repair a car after an accident can vary tremendously. It can depend on the severity of the damage, availability of parts, insurance approval delays, and the workload at the repair shop. Supply chain issues can also be a factor. If the shop has to order specific parts, especially for luxury, foreign, or older vehicles, repairs may be delayed until the necessary components arrive. But it can also depend on whether you opt to use your collision coverage or to wait for the adverse insurance company to finish investigating liability, interviewing their insured, and making their own determination. With so many moving parts, it is impossible to provide a general time estimate without knowing more. However, one part of this process that comes up again and again is the insurer’s right to interview its own insured.
This is an unfortunate loophole that can actually result in voided coverage. The insurance company has the right to wait to speak with its insured before paying you for your property damage. And the insured and adverse driver has a contractual obligation to cooperate with their insured. If the insured fails to cooperate, the insurer can void coverage because the insured would have violated their contract. But to answer the original question, once your vehicle is in the shop, a minor repair should take less than a week, while a major repair can take upwards of a month or more.
Will the Repair Affect My Car’s Value?
Yes, repairs after an accident often reduce your vehicle’s resale value. This is known as diminished value. Many car buyers, dealers, and insurers rely on services like Carfax and AutoCheck, which flag accident damage. A vehicle that shows up with a collision in its history—even if it undergoes professional repairs—is harder to sell or trade in, and typically sells for a lower price. But why should you have to suffer with a car whose value has been diminished from an accident you did not cause? The answer is that you do not have to. However, making a diminished value claim can be expensive. It is highly improbable that the adverse insurer will calculate the diminished value claim for you.
Thus, you must consult an appraiser. Our firm can refer you to a reputable appraiser, who will charge about $1,000 for the service. And even then, there is no guarantee that the insurer will reimburse you for the diminished value of your car. Of course, you can file a lawsuit for the diminished value claim. However, this is expensive because it would then require the appraiser to testify at trial, which they charge extra for. We are happy to discuss a diminished value claim in more detail. Contact our office today for a complimentary property damage consultation with our attorneys.
Who Pays for a Rental Car While My Car Is Being Repaired?
There are at least three ways to get a rental car while your vehicle is under repair. But no matter which option you choose, it is always best to obtain the rental car through the insurance company that is paying for the repairs and at their behest. Unfortunately, if you elect to rent a car through the adverse insurer, you may have to wait until their investigation is complete. And as we noted above, this can take weeks. While you may choose to rent a car before the adverse insurer completes their investigation, it is important to remember that you may not receive reimbursement for all or any of the cost. Moreover, you should always elect to choose the least expensive rental option and avoid paying for additional insurance when possible.
As a plaintiff, you have a duty to mitigate your damages. Thus, you cannot pick up a fancy rental car for as long as your car is in the shop. Of course, the best option is to use your own rental car coverage if it is available under your policy. As a reminder, if you do pay for a rental car and are seeking reimbursement, you generally must return the rental car as soon as your car is done being repaired or once your car is deemed a total loss.
Contact Gelb & Gelb Today
Our team of personal injury lawyers has been handling auto accidents for over 70 years. In that time, we have successfully resolved over 10,000 accident cases. These decades of experience position us to advise you on nearly any imaginable scenario involving property damage to your vehicle or personal injury you may suffer. Call our office today for a free case consultation.
