VEHICLE DAMAGE

     There are generally two ways to proceed to have your automobile repaired following a collision.  The first way is to have the at-fault person's insurance carrier (referred to as the liability carrier) pay for the damage to your vehicle. The second way is to have your own insurance carrier pay for the damage to your vehicle.

     In order to have the liability carrier pay for the damage to your vehicle, that carrier must first reach the conclusion that its insured driver was at fault for the collision.  The determination of fault is made by the liability carrier speaking to its driver and any witnesses to the accident.  In addition, the liability carrier will request a copy of the police report to review what the investigating officer reported about who was at fault.  If the liability carrier concludes that its driver was at fault, then the liability carrier will become responsible for repairing your vehicle.  Because the liability carrier must first reach a conclusion about fault for the accident before it will agree to be responsible for repairs, there can be some initial delays before your vehicle can be repaired.  The choice of where to have your vehicle repaired is yours; however, the liability carrier may have preferred shops that they work with on a regular basis.  If you select one of the preferred shops for the repairs, the liability carrier will typically guarantee that the repairs are paid in full.

     If the cost of repairs meets or exceeds the value of your vehicle at the time of the collision, the liability carrier will declare the vehicle a total loss.  If that occurs, your vehicle will not be repaired, but you will be paid the value of your vehicle.  That value will be equal to the fair market value of your vehicle at the time of the collision.  One way to determine this value is to investigate what your vehicle would have sold for just prior to the collision.  This can be done by contacting car dealerships and having them provide estimates about what the fair market value of your vehicle was at the time of the collision.  Another way to determine value is to utilize internet sources such as NADA, Kelley's Blue Book, or Edmunds.  The insurance carriers most often use the NADA value as their guide.

     During the time that your vehicle is being evaluated and/or repaired, you are also entitled to have a rental vehicle if the liability carrier has taken responsibility for the loss.  The type of rental vehicle that you can use during this time period is a vehicle of like kind and quality to the one that was damaged in the collision.  If you were driving a compact car at the time of the collision, that is the type of rental car that you will receive while your vehicle is being repaired.  Once the vehicle is repaired, you must immediately return the rental car.  If you continue to use the rental car after your vehicle has been repaired, you will be personally responsible for the additional rental charges.  Similarly, if your vehicle is determined to be a total loss, you must return any rental vehicle at the time the liability carrier makes you an offer of payment for the total loss.  Some carriers permit you to continue to use the rental vehicle until you receive payment for the total loss, but this is not always the case.  Again, to the extent that you continue to use the rental vehicle after the deadline identified by the liability carrier, you may be personally responsible for the additional rental charges.

You may also choose to have your own insurance company pay for the repairs to your vehicle.  This can only occur if your insurance policy provides for property damage repair.  This portion of your insurance coverage is called collision coverage.  If you have this coverage, you may proceed to have your own insurance company repair your vehicle. If you do not have this coverage, you cannot look to your own insurance company for the repairs.  Assuming you have collision coverage, there is typically a deductible that you must pay.  If you have a $500 deductible on your collision coverage, you will have to pay $500 out of your pocket before your vehicle will be released by the shop that performed the repairs.  Your insurance company will seek to recover the deductible from the liability carrier and reimburse you for the same, but this process can take months.  In addition, in order for you to have a rental car paid for by your insurance company, your policy must provide for rental coverage.  To the extent that you have rental coverage, your insurance company will only be responsible to pay the amount specified in your policy.  You will be personally responsible for any charges that exceed that amount.  If it is determined that your vehicle is a total loss, you will be paid the fair market value of your vehicle minus any deductible.  Because of the amounts that you typically have to pay out of your pocket if you have repairs done by your own insurance company, we normally recommend that you proceed through the liability carrier if they have accepted fault.

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The MorrisJames Personal Injury Group has been helping victims of serious Auto Accidents in Delaware for a combined total of 81 years. We have offices in Dover, Newark, and Wilmington. Contact us today