How to Claim for Car Repair After a Car Accident: Your Step-by-Step Guide

Introduction

Navigating California roads comes with inherent risks, and being involved in a car accident is a possibility every driver faces. Whether you’ve experienced a minor fender-bender or a more serious collision, understanding the proper steps to take and how to file a car repair claim is crucial. This guide provides you with essential information on what to do following an accident and how to effectively claim for car repairs with your insurance company.

For your convenience, consider keeping a car accident checklist in your vehicle to readily reference in case of an incident.

When selecting car insurance, carefully evaluate your application before signing. Ensure the coverage options, policy limits, and deductibles align with your specific needs. Upon receiving your policy documents, thoroughly review the declaration page. This document contains vital details about insured drivers, covered vehicles, coverage limits, and deductibles. Verify the accuracy of this information and confirm that your policy reflects your intended coverage. If any corrections or adjustments are necessary, submit your requests in writing to your agent or insurance company, retaining a copy for your records. Utilizing certified mail with return receipt requested is advisable to confirm document receipt.

Familiarize yourself with your car insurance policy in advance of needing to file a claim. A comprehensive understanding of your policy, including what is covered and any exclusions, is essential.

What to Do Immediately After a Car Accident

Q. What are the first steps I should take at the scene of a car accident?

A. Immediately STOP your vehicle and only move it if it is safe to do so and necessary to prevent further hazards.

Assess for Injuries and Call 911: If anyone is injured, immediately call 911 to request medical assistance.
Contact the Police: Notify the police, even for seemingly minor accidents. Police reports are valuable for insurance claims. Be aware that in some areas, law enforcement response may vary based on accident severity and location (e.g., private property accidents may not warrant police dispatch). However, making an attempt to notify the police is always recommended. Furthermore, most insurance policies stipulate a timeframe for police notification, especially in hit-and-run incidents.
Exchange Information with Drivers: Obtain crucial information from all drivers involved: full names, addresses, phone numbers, and driver’s license numbers.
Collect Vehicle Details: Record license plate numbers and Vehicle Identification Numbers (VINs). It is advisable to request to see driver’s licenses and vehicle registrations to verify the accuracy of the collected data.
Gather Witness Information: Collect names, addresses, and phone numbers of any passengers and witnesses present at the scene.
Document the Scene: If you have a camera or smartphone, take photographs of vehicle damage, the accident scene itself (including traffic signals, signs, and visibility obstructions).
Leave a Note if Necessary: If you cannot locate the owner of damaged property or an unattended vehicle, leave a clearly visible note containing your name, address, and contact information, as well as the details of the involved vehicle’s driver and owner.
Notify Your Insurance Company Promptly: Contact your insurance agent and/or insurance company as soon as possible to report the accident.
Report to the DMV if Required: In California, if anyone is injured or vehicle damage exceeds $750, you are legally obligated to report the accident to the Department of Motor Vehicles (DMV) within 10 days. Failure to report to the DMV may result in driver’s license suspension.

Frequently Asked Questions About Car Repair Claims

Q. What happens once I file a car repair claim with my insurance company?

A. After you initiate a claim, your insurance company will contact you to gather detailed information about the accident. This may involve a recorded statement or a written account of the events. In some instances, the company might request an Examination Under Oath (EUO). As part of their claim investigation, insurance companies may also contact other drivers involved and any witnesses to the accident. If your claim includes medical payments or uninsured motorist coverage, you will need to provide documentation of your losses, such as medical expenses, injury details, and lost wage information.

Q. What should I do if my insurance company doesn’t get in touch with me after filing a claim?

A. Typically, you should expect to be contacted by a claim representative within a reasonable timeframe after reporting an accident. While the standard period is generally within a few days, insurance companies in California can take up to 15 days to make initial contact under certain circumstances. If you haven’t heard from a claims adjuster within a week or so, it’s prudent to proactively reach out to your agent or insurance company for an update. If you experience a lack of response or perceive an unreasonable delay in the claims process, you have the right to contact the California Department of Insurance for assistance.

Q. How will the insurance company assess the damage to my vehicle for repair?

A. Insurance companies typically use a qualified adjuster or appraiser to inspect the damage to your vehicle. The adjuster will conduct an initial inspection and create a preliminary repair estimate. If additional damage is discovered during the repair process, the repair shop will need to contact the insurer to obtain approval for any supplemental repair costs. It’s important to note that the insurance company may send an adjuster to reinspect the vehicle to verify the newly identified damages. For minor damage, the insurer might request that you obtain multiple competitive repair estimates from local auto body shops. Ultimately, it is your responsibility to authorize and sign off on the repair work once you are satisfied with the repair estimate and the chosen repair facility.

Q. What amount will the insurance company pay for a car repair claim under a standard auto policy?

A. Under most standard auto insurance policies, the company will pay the lesser of two amounts:

The necessary cost to repair your vehicle to its pre-accident condition, or
The actual cash value (ACV) of your vehicle at the time of the accident.

It’s essential to thoroughly review your insurance policy to understand the specifics of your coverage, including any exclusions or limitations. For example, standard policies often provide limited or no coverage for aftermarket stereo equipment, telephones, or custom wheels and tires unless they are Original Equipment Manufacturer (OEM) installed. However, you can often purchase additional coverage for such aftermarket equipment for an increased premium.

Q. Can you explain what “Actual Cash Value” (ACV) means in car repair claims?

A. Actual Cash Value (ACV), unless specifically defined otherwise in your insurance policy, generally refers to the fair market value of your vehicle in California. Fair market value is defined as the price at which a willing buyer and a willing seller, both reasonably knowledgeable about the vehicle, would agree to transact under no pressure and acting in their own best interests.

Q. What is an “appraisal provision” and how can it help in a car repair claim dispute?

A. Most standard auto insurance policies include an appraisal provision. This clause can be beneficial if you disagree with the insurance company’s valuation of your vehicle, especially in cases of a total loss. If your policy contains this provision, either you or the insurance company can invoke the appraisal process. Each party will select their own appraiser, and these two appraisers will then jointly choose a neutral umpire. If the two appraisers cannot agree on a vehicle’s value, their differing opinions are submitted to the umpire for a final determination. An agreed-upon amount by any two of these three parties (either the two appraisers, or one appraiser and the umpire) becomes binding. You and the insurance company each bear the cost of your chosen appraiser, and the umpire’s fees are typically split equally between both parties.

Q. How are claim payment checks or drafts issued for car repairs?

A. The insurance payment check or draft may be issued jointly to you (the insured) and any lienholder, such as a bank or finance company if you have an auto loan. If your vehicle is repairable, the insurance company may also include the repair facility as a payee on the check.

Q. If my car is totaled, am I still responsible for the remaining car loan balance?

A. Yes, as the borrower, you remain responsible for the outstanding balance of your car loan, even if your vehicle is stolen or damaged beyond repair and declared a total loss. If the insurance claim payment is less than the amount you still owe on your loan, you are obligated to pay the difference to the lender. To protect against this financial gap, you can purchase “gap insurance” coverage.

Q. Will my insurance company pay for a rental car while my vehicle is being repaired after an accident?

A. Yes, but only if you have specifically purchased rental car coverage as part of your auto insurance policy. It’s important to review your policy details regarding rental coverage before you need to rent a car. While policy limits vary, rental coverage typically pays up to a specified daily amount for a defined number of days. This coverage usually ends when your vehicle repairs are completed, when the claim is settled and paid, or after the predetermined coverage period expires – whichever occurs first.

In cases where your vehicle is stolen, your policy might automatically include transportation expense coverage. Again, confirm this by reviewing your specific policy. This type of coverage generally begins 48 hours after the theft and concludes when your vehicle is recovered, the loss is paid, or after a specified duration, whichever comes first.

Q. What is a “Collision Damage Waiver” (CDW) when renting a car, and will my insurance cover these charges?

A. When you rent a vehicle, the rental agreement typically makes you financially responsible for any collision damage that occurs while the car is in your possession. Rental companies also carry their own insurance for damage to their vehicles caused by collisions. For an additional daily fee, the rental company offers a Collision Damage Waiver (CDW). Purchasing a CDW can waive all or a portion of your financial responsibility for repair costs if the rental car is damaged in a collision. The cost of the CDW and the specifics of the waiver can vary between rental companies. Whether your personal car insurance policy will cover a CDW for a rental car depends on the terms of your policy. It’s crucial to carefully read your policy or proactively ask your agent or insurance company about rental car coverage before you rent a vehicle.

Q. What does “salvage value” mean in a car repair claim?

A. Salvage value refers to the remaining market value of your damaged vehicle if it is determined to be a total loss by the insurance company.

Q. What is “subrogation” in the context of car insurance claims?

A. Subrogation is a legal right that allows your insurance company to recover the amount of money they paid out on your claim from a responsible third party. For example, if another driver is at fault in an accident that damages your car, and you file a collision claim with your insurer, your insurance company will then pursue the at-fault party or their insurance to recover the funds they paid for your car repairs. Your insurance policy typically requires your cooperation with the company’s subrogation efforts. You are also prohibited from taking any actions that could jeopardize the insurance company’s right to subrogation recovery. For instance, you should not sign any agreement releasing the at-fault party from liability in exchange for them paying your deductible directly.

Q. Is my insurance company obligated to help me recover my deductible in a car repair claim?

A. The answer is nuanced. Your insurance company is required to inform you whether they intend to pursue subrogation against the at-fault party. If they do pursue subrogation, they are also obligated to include your deductible amount in their recovery efforts. However, if the insurance company decides not to pursue subrogation, they are required to notify you of this decision, allowing you the option to pursue recovery of your deductible on your own. If the insurance company’s subrogation efforts are successful, either partially or fully, most companies will reimburse you for your deductible based on the percentage they recover. For example, if they recover 100% of the claim payout, you will receive a full deductible reimbursement. If they recover 65%, you will receive 65% of your deductible back. Any expenses or legal fees incurred by the insurance company during subrogation are typically apportioned proportionally between you and the company based on the recovery amount. If you choose not to have the insurance company include your deductible in their subrogation efforts, you can directly pursue the at-fault party for your deductible. However, it’s strongly recommended to discuss this with your insurance company first to avoid potentially compromising their subrogation rights.

Q. Does my car insurance coverage extend outside of California?

A. Yes, most car insurance policies provide coverage in other U.S. states, U.S. territories and possessions, and Canada. Similar to California, many states and territories have financial responsibility laws requiring drivers to maintain a minimum level of car insurance to cover damages resulting from vehicle ownership or operation. If the minimum financial responsibility requirements in a state or territory you are visiting are higher than your policy limits, your insurance company will automatically meet those higher requirements. However, it’s crucial to note that most U.S. car insurance policies do not provide coverage in Mexico. If you plan to drive your car into Mexico, you must purchase separate Mexican auto insurance coverage. Always verify your out-of-state coverage details with your insurer before traveling.

California’s Financial Responsibility Law, detailed in the California Vehicle Code starting from Section 16020, mandates that all drivers must be able to financially cover damages they cause while operating a vehicle. This law requires drivers to demonstrate financial responsibility with minimum coverage of $15,000 for injury or death to one person in an accident, $30,000 for injury or death to two or more persons in a single accident, and $5,000 for property damage in any one accident. If you are cited for a moving violation or involved in an accident, you may be asked to provide proof of financial responsibility. This proof can be easily demonstrated by recording your insurance company name and policy number on your vehicle registration card issued by the DMV. It’s recommended to keep this proof of insurance in your vehicle at all times when driving. For more detailed information, contact the California Department of Motor Vehicles.

Q. What should I do if I am served with a lawsuit (Summons and Complaint) related to a car accident?

A. If you receive a lawsuit (Summons and Complaint) as a result of a car accident, it is critical to notify your insurance agent and insurance company immediately. Keep a personal copy of the documents and promptly mail or hand-deliver the original legal documents to your insurance company. Do not discuss the accident or give any statements to anyone other than a verified representative of your insurance company. If the lawsuit stems from a covered accident under your policy, your insurance company is contractually obligated to provide you with a legal defense.

Q. Is a newly purchased vehicle automatically covered under my existing car insurance policy?

A. Most car insurance policies do offer automatic coverage for a newly acquired vehicle if it is intended to replace a vehicle already listed on your policy. In this case, the coverage for the new vehicle typically mirrors the coverage you had on the replaced vehicle. However, it’s essential to notify your insurance agent or broker as soon as possible about any replacement vehicle. If you desire additional or different coverage for the new vehicle, there is usually a specific timeframe within which you must notify your agent or company to make those changes.

Many policies also extend automatic coverage to a newly acquired vehicle that is in addition to the vehicles already insured under your policy. However, there are often specific conditions that must be met for this additional vehicle coverage to apply automatically.

Most automatic coverage provisions require the insured to notify the insurer within a certain period, often 30 days, of acquiring a new vehicle if they wish to have it covered under their existing auto policy. Be aware that some policies have shorter notification periods, sometimes as brief as 14 days or less.

If you fail to notify your insurer about a newly acquired vehicle within the specified timeframe, the vehicle may not be insured. Unless your insurance policy outlines a specific notification procedure, verbal notification to your insurance agent is generally considered sufficient to trigger automatic coverage for a newly acquired vehicle.

Things to Avoid After a Car Accident

Do not argue or get into heated discussions with other drivers or passengers at the accident scene.
Reserve your account of the accident for the police and your insurance company.
Do not sign any statements admitting fault or promising to pay for the other party’s damages.
If the other party offers to pay your deductible on the spot, refrain from signing anything. This could complicate your claim process.
Never refuse to exchange necessary information such as driver’s license, insurance details, and vehicle information with other involved parties and law enforcement.

Important Tips for a Smooth Car Repair Claim Process

Read and understand your car insurance policy thoroughly. Don’t wait until after an accident occurs.
If any part of your policy is unclear, ask your agent and/or insurance company for clarification. Address any questions proactively.
In case of an accident, call the police. If there are injuries, immediately call paramedics.
Gather as much information as possible at the accident scene. This information will be crucial when you report the incident to your agent and/or insurance company to initiate your car repair claim.
Notify your agent and/or insurance company of the accident immediately. Prompt reporting is essential for a timely claim process.
Cooperate fully with insurance adjusters and investigators. Your cooperation will aid in their investigation and efficient processing of your claim.
If you don’t understand any aspect of the claims procedure, such as settlement offers, don’t hesitate to ask your agent or insurance company representative for a clear explanation.
Notify your agent or company in writing of any changes in your vehicle ownership. This includes buying or selling a vehicle.

Understanding Your Rights: Fair Claims Settlement Practices Regulations

Generally, insurance companies in California are legally obligated to:

Inform you of all applicable benefits, coverage provisions, policy time limits, and other relevant conditions within your insurance policy.
Acknowledge your claim, initiate a claim investigation, provide necessary claim forms and instructions, and offer reasonable assistance immediately, but no later than 15 calendar days after receiving your claim notification. (A claim notification is defined as any written or oral communication to the insurance company that reasonably indicates your intention to make a claim).
Respond promptly to your communications, specifically within 15 calendar days of receiving any communication from you.
Accept or deny your claim promptly, and no later than 40 calendar days after receiving your “proof of claim.” Proof of claim refers to any documentation in your possession that provides evidence of the claim and supports the extent or amount of the loss. Examples include repair estimates, police reports confirming vehicle theft, etc.
Pay reasonable towing expenses unless the insurer provided you with the name of a specific towing company prior to you using a towing service.
Offer a fair and equitable settlement. In cases of total vehicle loss, the settlement must include applicable taxes, license fees, and vehicle transfer fees. The settlement amount should accurately reflect the value of a comparable vehicle of similar kind and quality in the current market. If you choose to retain the vehicle salvage, any deductions for salvage value from the settlement must be fair, measurable, and clearly explained.
Once a claim is accepted, issue payment promptly, and no later than 30 calendar days from the date a settlement agreement is reached.
Inform you whether or not they intend to pursue subrogation. If the insurance company decides to pursue subrogation, they are legally required to include your deductible in their recovery efforts, unless you have already independently recovered your deductible amount.

The above points are a simplified overview of some key aspects of the Fair Claims Settlement Practices Regulations in California. For complete details, refer to the full text of the regulations.

Automobile Insurance Fraud Awareness

Automobile insurance fraud has historically been a significant issue in California, taking various forms. The most prevalent fraud schemes involve automobile property damage and staged automobile accidents.

Automobile Property Fraud: This type of fraud commonly involves unethical auto body shops and repair facilities, and sometimes insured individuals, who may engage in illegal or questionable practices, including:

Falsely claiming vehicle parts were damaged or lost when they were not damaged prior to the shop receiving the vehicle.
Inflating final repair costs beyond the originally agreed-upon estimate.
Billing for repairs that were never actually performed or authorized.
Charging for new, genuine Original Equipment Manufacturer (OEM) parts while actually installing cheaper aftermarket or used parts sourced from junkyards.
Concealing damage by simply hammering out dents or using body filler (Bondo) while billing for the replacement and installation of brand-new auto parts.
Falsely reporting vehicles as stolen or vandalized to fraudulently collect insurance payouts.

It is always crucial for consumers to carefully scrutinize all paperwork from auto body and repair shops to protect themselves against potential fraud. Furthermore, consumers should be wary of any auto body or repair facility that offers unsolicited referrals to medical or legal offices. This practice can be a red flag for “capping,” which is the illegal referral of clients to legal offices for a fee (a felony offense in California).

Automobile Accident Fraud: Automobile fraud frequently involves organized auto accident rings that stage collisions. These staged accidents, which are not genuine accidents at all, often follow common patterns, including:

Deliberately stopping suddenly for no apparent reason to cause a rear-end collision.
Intentionally failing to yield the right-of-way to create an accident scenario.
Purposely giving up the right-of-way in a manner designed to induce a collision.
Submitting claim reports listing passengers who were not actually present in the vehicle at the time of the accident.
Listing witnesses in accident reports who were not at the scene of the accident and did not witness the collision.
Claiming injuries that seem disproportionately severe compared to the extent of vehicle damage.
The at-fault driver using a temporary vehicle registration, which can be an indicator of a vehicle used specifically for fraudulent activities.
The other involved vehicle exhibiting pre-existing damage that is unrelated to the current accident.
Being contacted by an attorney or medical professional without you soliciting their services after an accident.

If you have been involved in a car accident, exercise caution regarding any unsolicited referrals to body shops, law offices, or medical offices. Organized accident rings and “cappers” actively recruit individuals in communities to participate in orchestrated accident schemes. Often, these fraudulent accidents exist only on paper (“paper accidents”) and do not involve innocent, unsuspecting parties. Paper accidents have become increasingly popular among fraud perpetrators as they are less risky in terms of potential bodily injury and reduce the likelihood of police investigation and involvement.

Choosing Auto Body Repair Shops for Your Car Repair Claim

Under California Insurance Code §758.5, an insurance company cannot mandate that you have your automobile repaired at a specific repair shop. However, an insurance company is permitted to recommend a particular repair shop under the following legally defined conditions:

You, the consumer, must specifically request a recommendation for a repair shop from your insurance company.
You must be informed in writing about your legal right to select any repair shop of your choice for your car repairs.
If you agree to use the repair shop recommended by the insurance company, the insurer is obligated to ensure that your damaged vehicle is restored to its pre-accident condition at no additional cost to you, other than what is outlined in your policy or as otherwise legally permitted.
If the insurance company provides an oral recommendation for a repair shop, and you accept it, the company must follow up with the legally required written notice within five calendar days.

If you choose to have your vehicle repaired at a shop of your own choosing, the insurance company is legally obligated to pay the reasonable costs to repair your vehicle, provided the repairs are made in accordance with accepted industry standards for good and workmanlike automotive repairs.

The insurance company is prohibited from limiting or discounting reasonable repair costs based on what the charges would have been if the vehicle had been repaired at the company’s recommended repair shop.
Furthermore, the insurance company is required to stand behind the quality of repairs performed by their recommended shop. If the vehicle is not repaired properly by the recommended shop, the insurance company is accountable.

Auto Replacement Parts: Understanding OEM and Aftermarket Options in Car Repair Claims

In some car repairs, damaged parts may be replaced with aftermarket parts. Aftermarket parts are replacement parts not manufactured by the original vehicle manufacturer. Aftermarket parts can be of equal or even superior quality to Original Equipment Manufacturer (OEM) parts. While aftermarket replacement parts can be used to repair your vehicle, California law mandates that any such part must be comparable to OEM parts in terms of kind, quality, safety, fit, and performance. Consumers should be aware of the following regulations:

An auto repair shop is legally required to provide you with a written repair estimate detailing the cost of repairs before commencing any work on your vehicle. Once the repairs are completed, the shop must provide a written repair invoice. State law requires that the type of auto parts used in the repairs must be clearly identified on the repair invoice. Consumers should carefully review their repair invoice to ensure that the auto body shop has specifically identified each replaced auto part as being either used, reconditioned, rebuilt, aftermarket, or an Original Equipment Manufacturer (OEM) part.

Consejos importantes

Resumen rápido para nuestros lectores de habla hispana. Ha tenido un accidente, ¿qué sigue?

Lea su póliza. No espere hasta tener un accidente.
Si no entiende su póliza, pida una aclaración a su agente o a su compañía de seguros.
Si tiene un accidente, llame a la policía. Si hay lesiones, llame a los paramédicos.
Obtenga la mayor cantidad de información posible en el lugar del accidente, para entregársela a su agente y/o a su compañía de seguros.
Notifique inmediatamente a su agente y/o a su compañía de seguros si tiene un accidente.
Coopere con los tasadores e investigadores de la compañía de seguros.
Si no entiende algo sobre el procedimiento de las reclamaciones, por ejemplo, la cantidad de la oferta de liquidación, pida a su agente y/o a su compañía de seguros que se lo expliquen.
Notifique por escrito a su agente o compañía de seguros cualquier cambio en la propiedad de su vehículo.

Contact the Department of Insurance for Assistance with Your Car Repair Claim

We, the California Department of Insurance (CDI), are the state agency responsible for regulating the insurance industry and protecting the rights of insurance consumers in California.

Contact the California Department of Insurance (CDI) if:

You believe that an insurance agent, broker, or company has treated you unfairly during your car repair claim process.
You have questions or concerns regarding your car insurance coverage or claim.
You wish to order informational brochures from the CDI.
You want to file a formal Request for Assistance against your agent, broker, or insurance company.
You are encountering difficulties initiating a car repair claim with your insurance company.
You need to verify the license status of an insurance agent, broker, or insurance company.

Contact us through the following methods:

Call:

Consumer Hotline: 1-800-927-4357

TDD (Telecommunications Device for the Deaf): 1-800-482-4833

Write:

California Department of Insurance

300 South Spring St., South Tower, Los Angeles, CA 90013

Visit us in person:

300 South Spring St., South Tower, 9th Floor, Los Angeles, CA 90013

Office Hours: 8:00 AM to 5:00 PM, Monday through Friday, excluding holidays.