What is a Property Damage Claim?
If your car is damaged in an auto accident, one of the first problems that must be addressed is the repair of your car. The following article discusses what a property damage claim is, who you can present your property damage claim to, how the insurance company values your car and some of the vocabulary that is used by the insurance company.
With motor vehicle insurance, property damage is typically defined as damage to your car, truck, motorcycle or other motor vehicle. This being said, it is important to know that property damage in California also includes the cost of a rental car while your damaged motor vehicle is being repaired and damage to your personal belongings. A property damage claim is the formal request for reimbursement that is made to an insurance company to have your vehicle repaired or to be compensated for the full value of your car if it is completely destroyed or declared a total loss (see below for definition of total loss).
In most car accidents, you will have the option of presenting your property damage claim to one of three different parties: (1) the responsible person’s automobile insurance company, (2) your automobile insurance company if you carry collision coverage on your insurance policy, or (3) seek money directly from the person responsible for the accident (this method can require extensive investigation and be quite time consuming).
In general, California law values your damaged vehicle in two different ways. California law states you are entitled to recover either the cost of repair to your vehicle or the fair market value of your car, which ever costs less. An important fact to remember is fair market value is not the Kelly Blue Book (which is used for making vehicle loans), but is best represented by what your vehicle is worth in the area that you live. Whether the insurance company offers to repair your car or pay you money for the full value of your car will depend on a few different factors:
- If your car can be repaired, you are entitled to either have your car repaired or be compensated the money for the value for those repairs.
- If your car can be repaired but the costs of repair exceed what your car is worth, the vehicle will be deemed a total loss and you are only entitled to the fair market value of your car.
- If your car sustains a large amount of damage, you are entitled to recover the fair market value of the vehicle.
It is important to know that your property damage claim is separate from your bodily injury claim. This means you can have your vehicle repaired or be compensated for the full value of your car with out affecting your right to pursue a claim for your bodily injury.
Please remember, you should consult with an experience automobile accident attorney for more information about property damage claims and how to make sure you are fully compensated.
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