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After an accident, determining who is responsible for paying the bill for your property damages is one of the key issues to resolve. However, navigating the process of having a repair shop paid and getting your car back after an accident can be challenging. Continue reading to learn more about getting your car fixed and back on the road after a car accident.
If you are hurt in a car accident, our California injury attorneys can help you explore your options. Call us if you have been involved in an accident. We have decades of experience helping accident victims pursue compensation for their injuries and losses. Our car accident lawyers offer a free initial consultation to review your case and assess whether you have a viable claim.
Does My Insurance Company Pay The Body Shop Directly?
The answer to this question depends on your ownership status for the vehicle. If you own your vehicle outright (meaning you do not owe any money on a car loan or lease), your insurance company may cut a check directly. If you own your vehicle, you may not be required to spend the money you receive on repairs for your car. You can theoretically spend the money on whatever you want.
However, if you have a lease or a car loan, you may never see an insurance check for your damages. In this situation, your insurance company may send a check made out to the body shop and work directly with the body shop. Car insurance was intended to help drivers avoid the risk of paying the total out-of-pocket expenses for car repairs or replacements. Automobile insurance absorbs the risk of large payments.
Insurance-Preferred Body Shop Repairs
Even if your car is leased or financed, you can usually choose which body shop will repair it after an accident. Many insurance companies provide a list of preferred shops, but you are not required to use them. There are both upsides and downsides to choosing a body shop that the insurance company recommends.
One benefit of choosing an insurance-preferred body shop is the efficiency of service. The process is usually quick and straightforward, depending on the type of coverage you have. A potential downside of using an insurance-preferred body shop is that they may focus on keeping costs low for the insurance company.
Who Pays If I Am At Fault For The Accident?
If you are involved in an accident and are at fault, your insurance company may pay for your property damage after paying your deductible. A deductible is money you must pay after an accident before the insurance company pays to repair your car. You decide on your deductible amount when you first get your insurance. The tradeoff for a low deductible is a high premium.
Who Pays For My Car If The Other Driver Is At Fault?
If the other driver caused the accident, you may be able to file an insurance claim with the at-fault driver’s insurance company. You can choose to have the at-fault driver’s insurance company handle the entire case. However, since you do not have a contractual relationship with that insurance company, their goals differ from those of your own. With that said, responses and cooperation may vary during the investigation process.
If that happens, our car accident attorneys can offer legal support, especially in cases involving more complex issues.
Our personal injury attorneys have decades of experience working for injury clients and helping them seek accountability against negligent parties. Call us at (888) 488-1391 for a free case review.
Suppose you are working with another driver’s insurance. If the at-fault driver’s insurance company is not cooperative, your insurance company may pay for the repairs minus your deductible. If the other driver’s insurance company works well with you, your insurance company will want to be repaid. The process of your insurance company being repaid for repairs is called subrogation.
What Is Subrogation?
Subrogation is when your insurance company pays for your repairs and then asks the at-fault driver’s insurance company to pay them back. If the other insurance company’s repair costs are higher, your insurer may want the difference repaid. Subrogation lets insurance companies recover money from those responsible for the accident.
Subrogation can be a confusing area of the law. Our car accident claims lawyers at Arash Law are knowledgeable about subrogation and can help you protect your legal rights if a subrogation claim arises in your case.
What Happens If The Insurance Check Is More Than The Cost Of Repairs?
Sometimes, the insurance check is more than the estimate of repairs. If that happens, the balance may be yours to keep and do with whatever you choose, depending on your ownership of the car and the type of claim. Note that this circumstance does not happen very often, especially if you choose to use an insurance-preferred body shop.
Suppose you are using an insurance-preferred auto shop. In that case, it is likely that the insurance company has already gotten an estimate from the auto shop and will cut a check directly to the shop that is exactly or very close to the repair estimate. A car wreck lawyer typically considers the actual repair costs when estimating a claim’s value. In some cases, the insurance payout may exceed repair expenses due to other factors involved in the claim.
What Happens If I Spend The Insurance Money On Something Else?
If you own the car outright, you may be able to use the insurance check on anything that you want. However, if you have a lease or a loan, you must read the terms of your agreement and your insurance policy. If you have a lease or a loan, you probably agree to keep your vehicle in good condition, and you will likely have to spend the money to finance your repairs.
What Is The Difference Between A No-Fault State And An At-Fault State?
You may have heard about “at-fault states” and “no-fault states.” It can be challenging to understand the difference between those terms, and it is unlikely that you had ever thought about the difference before you were in an accident.
Car insurance policies may include various types of coverage, and the required coverage can depend on whether you own, lease, or finance your vehicle. Lease and loan agreements often have specific insurance requirements. The type of insurance rules that apply, no-fault or at-fault, can affect how claims are handled. Our car crash attorneys can explain these differences and help clarify which rules apply to your situation.
Continue reading to learn more about the difference between no-fault and at-fault states. If you want a better understanding of your specific situation, consider consulting our lawyers for car accidents. We offer free initial consultations.
What Happens If Another Driver Hits Me In A No-Fault State?
In a no-fault state, each driver generally files a claim with their own insurance company after an accident, regardless of fault. You may be able to seek damages under their insurance policy. No-fault states limit each driver’s ability to sue, regardless of who is responsible for the accident. There are only a few states across the country that are no-fault states.
After an accident in a no-fault state, each driver must file an insurance claim with their respective insurance companies. Whether you must pay a deductible depends on your insurance policy and the type of claim being filed. The deductible may help cover any additional costs of the claim.
What Happens If Another Driver Hits Me In An At-Fault State?
A driver may be held legally responsible for a car crash in an at-fault state. In at-fault states, the driver who is found responsible for the accident will also be responsible for any damages, physical or property damage, that the accident caused. California is an at-fault state.
In an at-fault state, you typically file a claim with the at-fault driver’s insurance company. The insurer will investigate and determine fault. If their policyholder is found at fault, the insurance company is generally responsible for paying for your property damages, usually by paying you or the repair shop for the cost of repairs. Out-of-pocket expenses may vary depending on the circumstances and coverage limits.
If the other driver’s insurance company found you at fault for the car accident, you have the right to dispute its decision. You may need legal representation to assist you in dealing with insurers and the at-fault party. If we take on your case, our car accident lawyers will investigate the accident and gather evidence to support your claim.
We have decades of experience advocating for our clients’ rights through negotiations and litigation. Call us at (888) 488-1391 or complete our “Do I Have A Case?” form here to schedule a free initial consultation.
What Is Collision Insurance?
Collision insurance is typically an optional form of insurance coverage. This pays for repairs to your vehicle or replacing your vehicle if you are involved in a car crash with another vehicle or a stationary object. Collision insurance coverage may help pay for repairs to your vehicle if you are involved in an accident with a driver who does not have insurance coverage.
On the other hand, avoid using your collision coverage if the at-fault driver has adequate insurance. Collision coverage is generally used when the other driver is uninsured or underinsured.
Uninsured motorist coverage helps pay for damage to your vehicle if you are involved in an accident with a driver who does not have automobile insurance. Underinsured motorist coverage may help compensate for damage to your vehicle if you are in an accident with a driver whose insurance is insufficient to cover your losses. Suppose you are involved in an accident with a driver whose policy limits are not enough to cover your expenses. In that case, you may be able to file a claim with your underinsured motorist policy to seek compensation for your expenses.
If you use your collision coverage and your vehicle is declared a total loss after an accident, your insurance company will typically pay the actual cash value of your car. A total loss means the vehicle is inoperable. The payout is generally the car’s value at the time of the accident, reflecting depreciation from the original purchase price. Collision lawyers can assist you in understanding this coverage, especially if there are challenges with your claim.
What Is Comprehensive Insurance?
Comprehensive automobile insurance covers various types of accidents that can cause damage to your vehicle. Examples of what comprehensive insurance covers include:
- Damage to your vehicle that was not caused by a traffic collision
- Theft
- Vandalism
- Fire
- Falling objects
- Severe storms
- Natural disasters
- Animals
Your comprehensive insurance coverage will also take care of damage to your vehicle caused by another driver hitting your parked car. Like collision coverage, if the driver who hit your parked vehicle had adequate insurance coverage, consider avoiding the use of your comprehensive insurance policy. If you have both collision and comprehensive coverage, you are considered to have “full coverage” insurance. If you have comprehensive insurance but face challenges with your claim, you may consider speaking with a car accident lawyer.
What Is Rental Insurance Coverage?
Rental insurance coverage is optional. However, getting it may help you pay for the cost of using a rental vehicle while your car is in the shop. Your policy will state the amount you may spend on a rental vehicle per day, per accident, and the maximum number of days you may have the rental car while your vehicle is in the shop.
What Is Liability Insurance?
Liability insurance only covers damages that a driver causes to another person’s vehicle. Liability insurance coverage will not cover any damage to your property. If you only have liability insurance, you will either pay for the damages to your car out of pocket or live with the damage.
Some states require every driver to carry liability car insurance at a minimum. The minimum policy limits will vary depending on the state.
What Is A Zero Payout?
A zero payout is a claim that is filed differently from a traditional insurance claim. You still inform your insurance company that you were in a car accident in a zero-payout claim. If you repair your car yourself after an accident and do not request payment from your insurance company, you can still notify your insurer about the incident. In this case, the insurer is not responsible for the repairs or any future issues with the vehicle.
What If My Deductible Is Less Expensive Than The Cost Of Repairing My Car?
If the damage to your vehicle is less expensive than your deductible, you can opt to pay for the damages yourself. It will not make sense to incur an expensive deductible if the damages are less than the deductible.
How Much Insurance Coverage Should I Have?
Deciding how much insurance coverage depends on several different factors. When you decide how much insurance you need, you should first think about the value of your vehicle. If you have a newer car with expensive parts, you may want coverage that would help pay for repairs or part replacements after an accident.
On the other hand, if you have an older car that has parts that are easily accessible (for example, the parts can be found at a junkyard), you may not want to make expensive insurance payments each month.
Keep in mind that if you have a lease or a loan, the terms of your agreement may require you to have a specific type and amount of insurance for the duration of the loan. Failing to have the required insurance can leave you in a vulnerable legal position and potentially expose you to legal liability for breach of contract. The consequences of breaching the terms of your loan or lease agreement can result in your vehicle being repossessed.
Speak With Our California Accident Attorneys At Arash Law
If you have been in a car crash, such as a head-on collision, rear-end accident, T-bone crash, sideswipe, rollover, or multi-vehicle pileup, call our California injury attorneys. We have decades of experience handling cases involving injuries and property damage. Call us at (888) 488-1391 for a free case review.
