Property Damage
Following a car accident, you will probably want to see compensation for any property damage to your motor vehicle in addition to any amounts you receive for medical expenses and pain and suffering. While the costs are usually minor in comparison with those related to the treatment of injuries, it can still be a significant portion of your claim and it is important to understand the factors involved.
Please contact us for a comprehensive explanation of how to make a claim for property damage. The following are some bare bones basics.
Insurance Coverage
In most cases, insurance coverage is available to pay for property damage. New York law requires drivers to buy liability coverage, which up to certain limits, will pay for any property or bodily injury damage that the inured is found legally responsible for. Liability coverage only protects the insured, their family, and anyone driving a covered car who has the owner’s permission to do so.
Some people also carry optional collision coverage that covers the insured for any damage caused by the impact with another vehicle or piece of property.
Collision coverage is available to pay the lesser of the costs of repair or the actual cash value of the car as determined by the insurance company. Tapping into collision coverage does not automatically result in an increase in premiums and many people use it to cover themselves in the event an at fault driver’s insurance coverage is not enough to pay for the property damage caused. Another type of insurance coverage often used in motor vehicle collisions is gap insurance.
Gap insurance is an optional type of coverage offered by auto insurance companies and finance companies to cover cars purchased through a financing agreement. Those who choose to purchase gap insurance are covered in the event their car is declared a total loss and will cover the difference between what the insurance company considers to be its value and the amount still owed to the finance company on the car.
Repairs
Dealing with an insurance company can be a long and frustrating task. Property claim investigations can take what seems like an eternity to settle and there is nothing to compel them to pay your expenses while you are awaiting settlement. Normally, the only expenses an insurance company will pay for is towing charges and some storage while they investigate your claim, although they are likely to charge you if the insurance company denies your claim.
If you anticipate having to make a property damage claim, the first thing to do is assert your rights as a consumer. You have the right to speak to insurance claim adjustors and to demand clear-cut timeliness and answers to your questions.
Don’t let the adjustors use insurance company jargon with you. Make sure they explain everything in plain English. Also, it is a good idea to obtain at least two independent estimates detailing your property damage, and if the insurance company provides their own, to request to see it. It is important to note that while you wait for the insurance company to work on your claim, you have the legal obligation to do everything possible to minimize further damage to your car.
This may include covering broken windows to protect the car from the elements and refilling leaking fluids should you continue to drive it.
When your car is considered a total loss
If the cost of repairs of your damaged vehicle exceeds the insurance company’s assessment of its actual cash value, the car will be considered a “total loss” and you will be offered the car’s actual cash value. The actual cash value is calculated as the cost to fix or replace the car – an amount for depreciation or obsolescence.
Generally, people are not happy by the amount calculated as the actual cash value for the car. The only way to counter an insurance adjusters calculation of actual cash value is to do some research of your own to determine your car’s retail value. Such research can be done on the web using sites such as Cars.com.
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