What am I owed after an accident?
As a result of damages sustained in a covered loss and a claim made against an insurer, the insurer is obligated to provide for either the repair or replacement of the damaged property.
Normally the insurer is given the authority to make the decision to either repair or replace the damaged property. Once they make the decision they are held to a level of “pre-loss” condition and/or “actual cash value” (ACV).
Should the insurer elect to repair a damaged vehicle, they owe the costs to restore the damaged vehicle to its pre-loss condition to the best of reasonable, human ability.
Should the insurer elect to deem the damaged vehicle to be a total-loss, they are obligated to provide replacement or actual cash value enabling the claimant to purchase another vehicle equal to the value of the damaged vehicle, immediately prior to the loss. The rules of indemnification are clear in as much as what is owed is what was possessed just prior to the loss, no better and no worse.
Additionally, you may be entitled to sales tax, tag and title transfer costs in the event your vehicle is determined to be a total loss.
You may be entitled to ‘loss of use’ (temporary substitute vehicle) during the time required to make repair; or, seek a replacement vehicle from the at-fault party, their insurer, or as may be provided by coverage within your personal insurance policy.
Who is responsible to pay?
If you make a claim against your own insurer it is considered a
first party claim and you will be dealing with your insurance company based on the terms and conditions as outlined within your insurance (contract) policy.
If the accident was someone else's fault and you are making a claim against them through their insurer, it is considered a
third party claim. You are under no contractual obligation to let the other person's insurance company inspect the damages or determine the extent of damages or cost of repair. You may, if desired, secure repairs and merely submit a bill to the at-fault party and/or their insurer for reimbursement. The at-fault party’s insurer will likely provide for your damages based upon the ‘limits of liability’ coverage under the at-fault party’s insurance policy.
It’s important to understand that the
at-fault party owes you for your damages and while
their insurer owes them under the terms of the property damage portion of their policy contract,
the at-fault party’s insurer legally owes you, the victim, nothing. The insurer will normally attempt to settle the claim on behalf of their insured as is owed to their policyholder under the terms of their insurance policy.
How do I recover all my losses?
The key to recovering all losses owed is to know just what it is that is owed you. Having an in depth visual inspection of the damaged/repaired vehicle and accurate assessment of your remaining damages prepared for you and understanding the necessary steps in the recovery process in paramount. Providing a detailed report with your claim will enable the insurer a clear understanding of your remaining loss and facilitate a more timely settlement.
Source: www.autodamageexperts.com/faq.htm
1
0
