When you are involved in an automobile collision, your primary concern is your health. This article deals with a “fender bender” situation where no personal injuries are sustained. This article will also focus upon damages to your own vehicle – leaving to another time the issue of reparations to another driver.
The first legal question concerns fault. If you were at fault in striking another driver or in striking a stationary object, then you should look to your policy to see whether your coverage includes coverage for “collision.” In the absence of collision coverage, you must pay for any repairs. If you have paid for collision coverage, you will then negotiate with your own insurance carrier to obtain an amount of money sufficient to make a repair – less the deductible – which is a standard part of the policy.
Your repair shop should deal with the insurance company directly – to confirm that a proper repair is promised, and the payment agreed to. Disputes often arise between car owners and their own carriers as to the scope of cost of repairs. Many carriers will insist that repairs be performed at “designated” repair shops. Some carriers will not pay for “factory” parts and will insist on after-market replacement parts. The general rule of thumb is that you should not accept a payment from your insurance carrier unless you are certain that payment will cover a full and complete repair of your vehicle. If you are not satisfied with the repair, the insurance company may insist that you deal with the repair shop directly – it will not want to be involved. If the repair shop is tied to the insurance company, you may have an argument that shoddy repairs should be the responsibility of the insurance company to correct.
Beware of surcharges which are imposed by some insurance companies which are designed to recoup payment for losses arising out of single vehicle accidents which are the fault of an insured. Stories abound of situations where car owners are surcharged for an accident in an amount which may approach the actual loss. Insurance companies also mysteriously rate drivers based upon accident histories; they may raise rates, drop insureds or refuse to issue new policies if an accident history is too severe. With all of the uncertainty and delicacy concerning insurability and rates, and with high deductibles, some car owners do not report minor accidents and pay for repairs privately rather than run the risk of increased rates or cancellation. An insured always has the right not to report an accident; however, this can be risky because damages may be more significant than initially suspected.
If your car has been damaged by another driver, the party responsible for the collision is legally obligated to pay for reasonable repairs. If both parties are partially at fault, the Pennsylvania Comparative Negligence Statute becomes applicable. If both drivers are negligent, each will bear a proportionate share of the repair costs based on percentage of fault.
If another driver is totally to blame, whom should you look to and what are you entitled to receive? Many drivers simply refer the matter to their own insurance carrier for “collision” reimbursement subject to the deductible. The insurance company will then seek compensation from the insurance company for the responsible driver. If you are not careful, you may lose your deductible in this process, and your carrier, in “inter company arbitration” may accept that you were fully or partially at fault. If you choose to submit a loss caused by another driver to your own carrier, you should make certain that your carrier protects your interest and the amount of the deductible is paid by the other driver or his insurance company. Your second option is to demand payment directly from the other driver or his insurance company. This becomes a problem if the other driver denies responsibility and refuses to pay. You may not wish to hire your own lawyer to pursue the other driver because of the expense involved. If the accident is clearly caused by the other driver, the other driver’s insurance company will often make a settlement, but as with dealing with your own carrier, you must be certain that a proper amount is received to make a full repair to your vehicle. If your vehicle is a total loss, you are entitled to receive its fair market value. This value is generally estimated in industry books, including on line sources, such as the Kelley Blue Book. You may argue that your vehicle was in better than average condition, but the parameters are generally somewhat fixed. The reality is that the amount of money received by an innocent driver is often not enough to buy a similar replacement vehicle. This is a fact of life that the law simply does not recognize. Drivers often receive their check for a total loss but are incapable of locating or purchasing a similar vehicle of similar quality.
Another problematic issue is raised when a vehicle loses value because of an accident, notwithstanding a reasonable repair. In some cases, a repaired vehicle is still worth less than it was before an accident. In the case of Horton v. Philadelphia Rapid Transit Company (1928) a little known decision of the Pennsylvania Superior Courrt, it was held that if a vehicle is worth less after it is repaired than its value before the accident, the measure of damages is the difference in market value before the accident and after the repair in addition to the reasonable cost of repair. This means that if you can show that your car is worth less on the market because of the repair, even if the repair was properly performed, you should be entitled to an additional item of damage.
Consequential losses should also be recoverable — these include repayment of storage fees and rental fees for a vehicle while your car is being repaired.
– Bill Brennan