Property Damage Claims: Know Your Rights and the Insurance Obligations
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You’ve been in a wreck. What do you do now?
Call 9-1-1
Sounds obvious. I know, I cannot understate the importance that you have the crash documented and immediately seek any needed medical care.
Virtually every auto insurance policy, whether another party’s liability carrier or your own collision policy, requires that the crash be reported to law enforcement before they will cover your loss.
If you or a passenger were injured, seek medical attention as soon as reasonably possible. If you do not believe you require emergency medical attention at the scene but feel sore, tell the officer! It needs to be in the report.
After you have notified law enforcement and sought medical care, report the crash to insurance.
Who Pays for the Repair or Replacement of Your Vehicle?
Depending on the circumstances of the crash, there are multiple ways in which your property damage claim can be handled.
- At Fault Party’s Insurance: This option (if available) present you with the least up-front costs. The disadvantage of this option is that a liability investigation must be completed which takes time. If time is of the essence, you may wish to utilize another option.
- Your Collision Coverage: Your collision coverage (if you have it) can repair or replace your vehicle usually much quicker than the other party’s. However, you will likely be charged your deductible later, but if the temporary costs are a factor, use the At-Fault Party’s insurance.
- Uninsured Motorist: Approximately 1 in 5 drivers on Tennessee roads are uninsured. So you have a 20% chance that the person who hit you doesn’t have insurance. In that care, your best option is filing a claim with your uninsured motorist carrier. Under Tennessee law (T.C.A. 56-7-1201(f)), these claims are not allowed to increase your rates or premiums. So, don’t worry about filing the claim. You will however be responsible for your deductible.
What Are You Entitled To?
Under Tennessee Law you are entitled to the cost of repair or the fair-market value of your vehicle. If the cost of repair exceeds 75% of the retail value of your vehicle, it should be considered a total loss (T.C.A. 55-3-211(9)(A)). The fair-market value of your vehicle is calculated by the retail value of comparable vehicles in the geographic are you live. This is different than BlueBook or NADA value.
You are also entitled to diminished value damages. These are somewhat complicated to calculate and you may need to contact a lawyer to help you recover for this.
You may recover for the loss of use of the vehicle. This could include rental fees and/or income from lack of transportation.
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