How To Handle Your Vehicle Repair Claim:

Step 1: How Is The At-Fault Party Determined In Florida?

A simple rear end accident is usually a pretty clear liability case. Conversely, cases such as sudden lane changes on the interstate or accidents at controlled intersections can be more difficult to prove liability. If the liability is clear then the insurance company for the at-fault party will usually pay your vehicle repairs, towing and rental charges. If the liability is not clear OR the at-fault person does not have insurance then you may need to use your own insurance so that you can get your repairs done immediately. You can only use your own insurance for your vehicle repairs if you have “Collision” coverage and you will likely have to pay your deductible.

Step 2: Do I Use my Insurance or the Other Party’s Insurance?

If you are not at fault, it is generally best to use the at-fault insurance coverage. If they do not have sufficient coverage or liability is not clear, then you have the option to use your own insurance to fix your vehicle as long as your carry collision coverage. It is not always an easy decision to decide if you want to use the at-fault insurance or your own insurance coverage.

Sometimes the property damages exceed the insurance limit for the at-fault party. The Florida minimum is $10,000.00 in property damage coverage. Therefore if the repairs, towing and rental do not exceed $10,000.00 usually the at-fault insurance coverage is sufficient to pay the claims. If the claim exceeds this amount, and the at-fault party only carries the minimum, then you may need to consider using your insurance so you can receive the full amount of the claim.

Example #1: Your brand new SUV worth $30,000.00 is totaled. The at-fault party carries only $10,000.00 in property damage coverage. In this case you will need to use your insurance because the at-fault party doesn’t have enough coverage.
Example #2: Your brand new SUV worth $30,000.00 is totaled. The at-fault party carries $50,000.00 in property damage coverage. You should have no problem using the at-fault party insurance because his insurance limits are enough to fully cover your vehicle.
Example #3: Your brand new SUV worth $30,000.00 is totaled and your vehicle was pushed into another car whose vehicle is also totaled. The at-fault party carries $50,000.00 in property damage coverage. Your damages are $30,000.00 and their damage is $30,000.00. The combined damage of $60,000.00 exceeds his coverage so you should use your own coverage.
Example #4: Your brand new SUV worth $30,000.00 is totaled. The at-fault party carries $10,000.00 in property damage coverage. You do not have collision coverage on your policy. You have no choice but to use his insurance for vehicle damages because your policy doesn’t have collision coverage (hint: always have collision coverage unless your vehicle is worth very little AND you can afford to completely replace it). You won’t be able to recover the full amount of your vehicle damages.
Example #5: Your brand new SUV worth $30,000.00 is totaled. The at-fault party does not have any insurance coverage. You HAVE collision coverage on your policy. You have no choice but to use your insurance for vehicle damages and you will have to pay your deductible.
Example #6: Your brand new SUV worth $30,000.00 is totaled. The at-fault party does not have any insurance coverage. You do NOT have collision coverage on your policy. This is very bad.

Your car will not be reimbursed by any insurance company. You have the right to sue the at-
fault driver personally but may have difficultly recovering your damages (hint: always have collision coverage unless your vehicle is worth very little AND you can afford to completely replace it).

Step 3: What does the insurance company cover?

The at-fault insurance is required to pay the reasonable cost for repairs or if the car is totaled (not fixable) they will be required to pay the actual cash value of the vehicle. They also must pay for a rental car while your vehicle is not available for use or reimburse you for the loss of use of your vehicle. If your vehicle is repaired and the value of the car is reduced after the accident, you can make a claim for this loss of value (diminution in value). If you use your own insurance, what the insurance will pay depends on what type of coverage you have. You also have to pay your deductible initially.

If you have rental car coverage they will pay according to the coverage you have (sometimes a daily rate maximum or a total maximum), but if you do not have rental coverage then they are not required to pay for your rental. If you go through your own insurance company but are not at-fault, your insurance company will try to obtain your deductible back through a process called subrogation. It can take several weeks or months. But generally if you are not at-fault and the other insurance company has sufficient coverage, you will be reimbursed for your deductible.

Step 4: How Do I Choose a Body Shop After a Car Accident?

You have the right to use your repair shop of choice. They at-fault insurance company must provide a rental or reimburse you for the rental expenses that you have to pay. They do not cover fuel, tolls or additional insurance on the vehicle. They will also only cover the rental for a reasonable amount of time to fix the vehicle, so make sure that the repair shop completes the repairs timely. Insurance companies often have preferred shops they will suggest that you use. You are not required to use their preferred shop. Sometimes that is not a bad option if it is a reputable because if there is a problem with repairs they will usually guarantee the repairs and the rental. Regardless it is very important to use a professional and reputable body shop who will be able to get the repairs done quickly.

Step 5: Who Pays For My Rental Car After An Accident?

The at-fault insurance company is responsible for a rental or loss of use. The insurance is required to provide you a similar vehicle to your own, usually based on vehicle size, type and capacity. If you have a 7 seat large SUV they are required to provide you a similar large SUV. Many times an insurance company will try to put you in an economy rental and if your damaged vehicle was a luxury vehicle, pickup truck or large SUV then you deserve more than an economy rental. Some insurance companies do not provide rental but instead provide loss of use. This is legal. In the alternative, they must provide you compensation for a rental.

Insurance companies often try to pay you a base or economy rate for loss of use. In this situation I like to show them the actual cost of a rental during that time period for a vehicle of similar size. Additionally, if you are without your car for some time before they provide a rental, then you get loss of use for that time you didn’t have a car. If it took the insurance company a week to investigate and finalize liability then they still owe you loss of use for that week even if they started paying the rental after that time. Florida law is clear that you are entitled to damages for loss of use of a motor vehicle even though a substitute vehicle was not rented. Only the price of the rental is covered and not fuel, tolls or additional insurance on the vehicle.

Your own insurance will usually cover you while you are in the rental as this vehicle is considered a “temporary replacement vehicle”. You are not required to purchase the additional rental insurance offered by the rental company, but this is your option. You are responsible for the rental vehicle when it is in your custody, so if somebody backs in to you in a parking lot and takes off the rental car will charge you for the damage. The insurance will pay for rental/loss of use for a reasonable repair period, or in a total loss situation, until the date you receive the total loss check. If the body shop takes twice as long as to repair the vehicle as they should have or if you don’t timely complete the total loss paperwork the insurance can try to not pay you rental or loss of use for this additional time.

Step 6: What If My Car is Deemed a Total Loss?

A total loss is when the cost to repair your vehicle exceeds 80% of the value of the vehicle. In this case, the insurance company owes you the actual cash value of the vehicle plus sales tax and tag transfer. The condition of your vehicle including mileage affects the actual cash value of the vehicle. Depending on the insurance company, the actual cash value can vary significantly. You need to do your own research on the value of your car and make sure you are being offered fair value by the insurance company. In a total loss the insurance will typically only cover the rental for a few days after the total loss paperwork is complete and you have the check.

They do not have to pay until you are able to buy another car. If your vehicle is being totaled it is a good idea to start shopping for a car quickly because the rental will not be available indefinitely. Once your vehicle is totaled it is very difficult to obtain a title for this vehicle ever again. Please think twice about trying to keep a vehicle and get it fixed yourself after being totaled. This is very difficult and I never recommend anyone trying to do this because it is possible they vehicle will never pass inspection.

Step 7: What Does Diminution In Value Mean?

This is the diminished value of a vehicle after repairs. Generally, this claim is only made when extensive damages are done to the vehicle OR it is a very expensive vehicle that even a small repair can reduce value. These are difficult claims and insurance companies are very tough to negotiate with on these claims. You need to have documentation about how your vehicle has been reduced in value since the property damage repairs and submit this to the insurance company. It is rare that even a substantial accident devalues a car more than 10 to 20% of the overall value unless the vehicle is extremely rare.

Step 8: Do I Have To Give a Statement To My Insurance?

Be vary careful when reporting a loss to any insurance company, including your own, especially if they request a recorded statement. These facts can be used against you later. If you are injured you need to be especially careful in reporting a loss because it can affect not only your property damage but also your injury claim. Insurance companies may try to contact you very early to obtain a statement from you about what happened and may catch you off guard. They will also tell you they “need” to have a statement when many times you aren’t legally required to give a statement.

Step 9: How Do I Decrease Stress After a Car Accident?

Property damage can be a very difficult process. You are stressed from the accident, you don’t have a vehicle and you need to go to work or pickup your children. Even for someone with experience in property damage claims they are not easy. Insurance companies are always trying to find a way to save money off the claim by paying you less for repairs, less value for total loss, not providing a similar rental vehicle, using old parts and trying not to replace necessary parts. Knowing exactly what an insurance company is legally required to pay is important in making sure you get the full value for your claim.

For support during this challenging time, consult an Altamonte Springs car accident lawyer who can guide you through the process and help you fight for fair compensation.

Step 10: Can Matthew Boren Help Me?

Even for a trained and experienced professional, handling property damage claims is frustrating and exhausting. Many times I have to call supervisors of insurance companies because the handling adjuster just will not pay what they should. Sometimes insurance adjusters don’t know the law and sometimes they purposely ignore it. It is a fight for every single dollar sometimes.

If you need help with this process, feel free to reach out to my office with the form below. We will be in touch with you shortly. We understand that time is of the essence with property damage claims and will do our best to reach out to you as soon as possible. A consultation is free and I can usually help you with just a few minutes of advice. If you fill out the form completely and give me exact details it will help me respond to you timely and accurately.