One of the first orders of business in a vehicle accident is the resolution of the property damage claim. Usually this aspect of the case is handled directly between the claimant and the insurance adjuster. Our firm only becomes involved in this aspect of the claim if negotiations break down and you cannot resolve the property dispute.

The first item is to determine if your vehicle is repairable or a total loss. The formula is very simple. If it costs less to fix your car, than replace it, it will be repaired. Conversely, if it costs less to replace the vehicle than fix it, it is deemed “totaled”. Most of the time, the property damage is resolved with the driver at fault’s insurance company. If, however, there is an issue on who is at fault, or if the driver at fault does not appear to have insurance coverage or not enough coverage, you may need to check your own insurance policy and resolve the property damage using your own collision coverage, if you have it. Usually, this involves a deductible that you must pay out of your own pocket.

If the vehicle is repairable, you have the right to choose the place for the repairs. However, some insurance companies will only guarantee work done by repair facilities on their own list.

If your vehicle is deemed totaled, you have a right to the actual cash value, or “ACV”. This is not the same as the so-called “Blue Book” value. ACV is essentially what your car would have been worth on the open market here in Pima County one day before the accident. If you sold your car one day before the accident, how much would you have gotten for it? Thus, in determining your vehicle’s ACV, you should consider the year and make of the vehicle, its mileage, its condition, its options, and other such factors. While the insurance company will do a study to find out what this amount is to be, our advice is to conduct your own study by checking the newspaper or other periodicals and calling new and used car dealerships to find out what your vehicle would sell for in the open market. To the extent possible, get any estimate of the ACV in writing.

If you owe money on a totaled vehicle, the lien holder is included on the check and they must issue a title release. You must give the title to the insurance company to settle a total property damage loss. In some instances, you can buy back the wrecked vehicle (“the salvage”). To do this you must go to the Department of Motor Vehicles and obtain a salvage vehicle title, but this is generally NOT recommended.

You have a right to a rental car until your vehicle is repaired or until the insurance company makes you an offer for your totaled vehicle. Sometimes the insurance company will suggest the place to rent and allow a direct bill of your auto rental. However, you usually have to use your credit card as security and be of a certain age. NOTE THAT THE COST OF THE EXTRA INSURANCE ON THE RENTAL VEHICLE IS USUALLY NOT COMPENSABLE. Therefore, do not purchase additional insurance on the rental unless you do not have any insurance on your own vehicle. If you have any questions in this regard, speak to us first.

The above comments are merely general guidelines. We are always available to assist you if a problem arises. We typically assist in property damage issues without charging any legal fee unless a dispute arises that requires us to spend substantial time on the problem. If that happens, we will advise you in advance.