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FREQUENTLY ASKED QUESTIONS
FOLLOWING A MOTOR
ACCIDENT |
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FOR HANDLING
MINOR CAR ACCIDENT CLAIMS
If you've
been involved in a minor motor vehicle accident in which no one is
injured, chances are you don't need a lawyer. You may, however, need some
helpful advice on how to handle your claim --to make sure you're treated
fairly by the insurance company.
As a general
rule, a driver who causes an accident has to pay for the damages resulting
from the accident. Most people carry insurance to cover their
liability. Since minor accidents generally involve only property
damage, this information does not go into complicated issues that
might apply to a personal injury claim. Minor medical bills, however, are
discussed briefly.
We see certain
questions from people involved in minor car accidents come up time and
time again, and the answers to some of the following questions may help
you to handle a minor claim without a lawyer. However, for specific
answers to specific questions you should contact a lawyer. You may contact
our offices for specific answers to these and other questions which you
may have, free of charge.
-
SHOULD
I REPORT THE ACCIDENT?
- WHO
PAYS FOR THE DAMAGE TO MY CAR?
- HOW
DO I TURN IN MY CLAIM?
-
HOW
MUCH SHOULD I GET PAID FOR MY CAR DAMAGE?
- HOW
MANY ESTIMATES DO I NEED?
-
DO
I HAVE TO GET THE CAR FIXED TO GET PAID?
-
SHOULD
I GET MORE THAN THE COST OF REPAIR?
- WHAT
IF MY CAR IS "TOTALED?"
- WHO
PAYS FOR TOWING?
- WHAT
ABOUT DAMAGE TO OTHER THINGS?
- SHOULD
I GET A RENTAL CAR?
- WHAT
IF I WAS PARTIALLY AT FAULT?
-
WHAT
IF THE OTHER DRIVER DOES NOT HAVE INSURANCE?
-
WHAT
IF I DID NOT HAVE INSURANCE ON MY CAR?
- WHO
PAYS MINOR MEDICAL BILLS?
- WHAT
IF I WAS DRIVING SOMEONE ELSE'S CAR?
-
CAN
I BE COMPENSATED FOR THE PAIN OF A MINOR INJURY?
-
HOW
DOES "NO-FAULT" INSURANCE WORK?
-
HOW
DOES UNINSURED AND UNDERINSURED MOTORIST COVERAGE WORK?
-
WHAT
IF THE INSURANCE COMPANY WILL NOT PAY?
1. SHOULD I REPORT THE
ACCIDENT
Yes, if it
results in enough damage.
If an accident
in Minnesota results in personal injury or other damage in excess of $500,
you must report the accident to the Minnesota Commissioner of Public
Safety within 10 days.
If an accident
in Wisconsin results in personal injury or other damage of $500 or more
($200 if government property is damaged), you must "immediately and by the
quickest means of communication" notify the local police, sheriff or state
patrol. Call the local law enforcement and they will fill out a police
report.
If an accident
in North Dakota results in personal injury or other damage of $1,000 or
more, you must give notice immediately to the local police if the accident
occurred in a municipality, otherwise the accident should be
reported to the sheriff or state highway patrol.
You should
also report the accident to your insurance company by calling your own
insurance agent. Even if you don't initially intend to make a claim on
your own insurance policy, complications may arise in the future, which
will require your insurance company to get involved. You don't want the
company to deny coverage based upon the lack of timely notice.
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2. WHO PAYS FOR DAMAGE TO MY
CAR?
The driver who
was at fault must pay for the collision damage to your vehicle. You should
generally turn your claim in to the other driver's insurance company if
you think he or she was at fault.
You may,
however, want to turn your claim in to your own insurance company. If the
accident was primarily your fault, or the other driver was uninsured, you
may not have any other practical choice. If you have "full coverage",
including collision damage insurance, your insurance company will pay you
for the damage regardless of who was at fault. Your own company may also
be quicker to pay than the other insurance companies involved. The only
drawback is that there is usually a "deductible" on your policy that would
not apply if you were collecting from the other driver's insurer.
If the
accident was your fault, or if the other car was not insured and nobody is
rushing to write you a check, the choice is easy--turn the claim in on
your collision insurance.
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3. HOW DO I TURN IN MY
CLAIM?
A claim is
turned in simply by advising the company that you were in an accident and
that you have suffered some damage. This is a very informal process.
Drivers are required to exchange insurance information after an accident,
and you should call the appropriate insurance agent or claims center as
soon as possible after the accident. Follow up your telephone call with a
letter to the company confirming that you have notified it of the claim.
Keep a copy in a folder containing any other information you may have on
the accident, and document everything you can in writing.
The company
will assign an adjuster to handle the claim. It is the adjuster's job to
evaluate the damage, determine who was at fault, and then settle or deny
the claim. The adjuster should take a look at your car and review any
damage estimates as soon as possible. The adjuster will also want to
interview you and get your version of the facts. It is important that you
honestly and completely describe the accident and your damages.
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4.
HOW MUCH SHOULD I GET PAID FOR MY CAR DAMAMGE?
You should be
paid the reasonable costs of all repairs required because of the
accident. The reasonable cost of repair is most often set by an estimate
from a body shop. Get your estimate right away and make a demand for
payment.
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5. HOW MANY ESTIMATES DO I
NEED?
There is no
law that says you have to get two estimates (or three, or four, or any
other number). One estimate is frequently enough if the repair shop has a
reputation for reasonable work and fair prices.
Some insurance
companies insist upon doing their own damage estimate. Go ahead and let
the insurance company look at your car, but also get a body shop of your
own choosing to give you an estimate before you agree to the amount. If a
dispute arises on the cost of repair, the body shop doing the repair work
will often be able to resolve it for you by contacting the adjuster
directly. Sometimes another independent estimate is necessary to resolve
the argument.
You are not
necessarily limited to the lowest bid. If the lowest bid was achieved
through the body shop cutting corners, that's unreasonable. You are
entitled to have your car restored as nearly as possible to its condition
before the accident. Don't settle for a poor repair done at a bargain
price.
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6. DO I HAVE TO GET THE CAR FIXED TO GET
PAID?
No. You are
entitled to be compensated for the damage to your car regardless whether
or not you choose to get it fixed. If you have a car loan, however, the
check from the insurance company will probably be made out to you and your
bank, and the bank may insist you get the car fixed before they sign the
check over.
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7.
SHOULD I GET MORE THAN THE COST OF REPAIR?
If the value
of the repaired car has been reduced because of the collision repair, even
if done properly, you should demand an additional payment in the amount
that the value has dropped. This happens, for example, when a collector
car or antique car is extensively damaged and its resale value has been
hurt because of the mere fact that it is no longer "original".
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8.
WHAT IF MY CAR IS "TOTALED?"
Your car is
"totaled" if the cost of repair is more than the actual fair cash
market value of the car just before the accident. If it would cost
more to fix the car than it would to buy one just like it, you get the
cash value of the car just before it was wrecked, rather than the cost of
repair. You should also get the sales tax on the market value, plus the
value of the unexpired term of your license tabs.
There is no
single "book price" that decides the value of your car, but there are many
sources you can look to. Bank loan officers and car dealers often have the
N.A.D.A. Official Used Car Guide or similar guidebook available. Or, click here to get the value of your car
from Kelley Blue Book. Some insurance companies use a "market analysis"
company that prints value reports of similar cars after supposedly
checking the market. If you recently bought your car, the purchase price
is evidence of its value, keeping in mind that cars depreciate rapidly.
Local ads for similar cars can be considered.
When the
insurance company pays off on a totaled car, the company becomes the owner
of the car. If you want to keep your totaled car for any reason, you
should negotiate a "salvage value" with the insurance company. The salvage
value can be deducted from your check if you are going to keep the
car.
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9. WHO PAYS FOR
TOWING?
The other
driver's insurance company must pay the cost of towing your vehicle from
the scene of the accident to a place of safekeeping, and for storage costs
until a reasonable offer of settlement is made to you. If you are
collecting from your own company, however, check your policy or call your
agent to see if towing or storage is covered.
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10. WHAT ABOUT
DAMAGE TO OTHER THINGS?
You should
collect for any personal property that was damaged in the accident. If
your new television in the trunk of your car was destroyed in the
accident, for example, you are entitled to collect its value from the
at-fault driver or his insurance company.
If the
accident was your fault, however, you should look to your homeowner's
insurance to pay for damaged items. Your own car insurance will not
cover damage to things in the car unless specifically listed on the auto
policy.
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11.
SHOULD I GET A RENTAL CAR?
Yes, if your
car will be out of commission for more than a few hours. You are entitled
to the reasonable value of a rental car during the time it takes to get
your car fixed, or until the insurance company makes you a reasonable
offer for the repairs or replacement. If you are collecting the collision
damage from your own insurance company, however, check to see if
your insurance policy covers a rental car. Some don't.
Some insurance
companies want to make their own arrangements for your rental car because
they get special rates. This is O.K., as long as you get a rental car that
is suitable.
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12. WHAT IF I
WAS PARTIALLY AT FAULT?
Your fault
will be compared to the fault of the other driver, and you will be
paid accordingly. This concept is called "comparative fault."
If the
accident was partly your fault, the other driver's insurance company will
reduce the amount you get paid for your damages by the percentage of your
fault. For example, if another driver pulled out in front of you from a
stop sign, but you were not looking where you were going, you might be 30%
at fault (the exact percentage is always a matter of opinion). If the
damage to your car was $1,000.00, the $1,000.00 would be reduced by 30%
and you would collect only $700.00. The exception is that if you were
more than 50% at fault, the other driver's insurance doesn't have to
pay you at all.
Keep in mind,
however, that "comparative fault" does not apply to collecting your loss
under your own collision damage insurance. Even if you were 100% at fault,
the collision damage insurance on your car will still pay for all damages
to your car, less any deductible.
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13.
WHAT IF THE OTHER DRIVER DOES NOT HAVE INSURANCE?
If you don't
have collision coverage on your car you may have to sue in conciliation
court.
Conciliation
court is a quick and informal way to go to court without a lawyer. A small
filing fee is charged and the clerk at the courthouse can show you how to
fill out the papers.
Conciliation
court does have its drawbacks. The dollar amount you can claim is limited.
Results are easily appealed by the unhappy party, and judgments can be
hard to collect. People without insurance are often also without any means
to pay a court judgment.
If the damages
are believed to exceed the conciliation court's limit, you should contact
a lawyer.
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14.
WHAT IF I DID NOT HAVE INSURANCE ON MY CAR?
It is against
the law to operate a car in Minnesota, North Dakota and Wisconsin without
insurance, but a lack of insurance will not prevent you from collecting
damages from the at-fault driver's insurance company.
You will not,
however, be able to collect your no-fault benefits in Minnesota and North
Dakota if you were driving your own-uninsured car.
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15. WHO PAYS MINOR
MEDICAL BILLS?
In
Minnesota and North Dakota, your medical bills, wage loss and
replacement services expenses will be paid under the no-fault insurance
system (see the description of no-fault insurance below).
In Wisconsin,
most car insurance policies have a medical payment clause, which pays your
medical bills up to the amount stated in the policy, usually $5,000, or
less. Wearing a seatbelt will often double the medical payment
coverage.
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16. WHAT
IF I WAS DRIVING SOMEONE ELSE'S CAR?
As long as you
had permission to drive, the insurance on the car covers your liability.
If the car was uninsured, your car insurance will cover your liability.
If you were
hurt, your Minnesota no-fault insurance will pay medical and other
benefits regardless where the accident occurred.
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17.
CAN I BE COMPENSATED FOR THE PAIN OF A MINOR
INJURY?
In Minnesota
and North Dakota, you can bring a claim for pain and suffering against the
other driver only if you are injured and you meet one of the thresholds
described in the no-fault section below. In Wisconsin, however, no
thresholds apply. If you have even a slight injury caused by another
driver (a small bruise, for example), you are theoretically entitled to
compensation for any pain that you have suffered. Common sense will tell
you whether a claim is so minor it is not worth pursuing.
Generally
speaking, any claim involving bodily injury should be reviewed by an
experienced personal injury lawyer. There are no tables or charts that can
be consulted to determine appropriate compensation for pain and suffering,
and only past local experience in handling this kind of case will give you
a ballpark idea of the appropriate amount for fair
compensation.
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18. HOW DOES
"NO-FAULT" INSURANCE WORK?
"No-fault"
auto insurance applies only to personal injuries. It does not apply
to property damage. It is designed to make your own insurance company pay
your medical expenses, lost income, and value of replacement services that
others must do for you because of your injury. These expenses are paid
regardless of who was at fault in causing the car accident.
No-fault
insurance is required by law on all cars driven principally in Minnesota
and North Dakota, but it is not required, or even available, in
Wisconsin.
The advantage
of having no-fault insurance is that medical bills, wage loss and
replacement services can be paid to you within 30 days of the claim,
without waiting to settle your case against the other driver.
The
disadvantage of no-fault insurance is that under the Minnesota no-fault
law, you cannot make a claim against the other driver for your pain,
distress or disability unless you have met one or more of the following
no-fault "tort thresholds":
- Permanent injury or
disfigurement;
- 60 days or more of
disability;
- Medical bills of
$4,000.00 or more, or
- Death.
In North Dakota the
thresholds are as follows:
- Serious and permanent
disfigurement;
- 60 days or more of
disability;
- Dismemberment;
- Medical bills in excess
of $2,500, or,
- Death.
If you will meet one of
these thresholds, you do not have a "minor" claim and you should contact
an attorney immediately.
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19. HOW
DOES "NO-FAULT" INSURANCE WORK?
Uninsured motorist coverage
pays for personal injuries caused by an uninsured driver. Minnesota, North
Dakota and Wisconsin all require this coverage on each policy of car
insurance.
This type of insurance acts
just like the insurance that the uninsured driver should have had on his
or her car, except there is no requirement that any no-fault threshold be
met before payments can be made.
Underinsured motorist
coverage picks up where the liability coverage of the other driver leaves
off. If your personal injuries exceed the amount of the other driver's
liability insurance, your underinsured motorist insurance covers the
excess damages under current law.
Neither of these coverages
apply to damage to your car or other property. They apply only to injuries
and are very seldom an issue in the minor accident case.
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20.
WHAT IF THE INSURANCE COMPANY WILL NOT PAY?
Your own insurance company
must respond to a claim within 30 days of receiving reasonable proof of
the claim. The other driver's insurance company, however, is under no such
restriction, and you may need to make yourself the "squeaky wheel" in
order to get proper attention.
Identify the reason why they
haven't paid. Simply call and ask the adjuster. Provide the adjuster with
any proof that is missing. Frequently, it is as simple as sending a
written damage estimate or a copy of the police report. Insurance
companies will deny a claim if possible, but they cannot ignore a
well-organized demand for payment supported by hard evidence in writing.
Insurance companies are
always looking for documentation in writing. If something cannot be
documented in writing, it does not exist for most insurance claims
adjusters. You are therefore well advised to submit everything you can in
writing from the start.
Your file may be sitting on
someone's desk with many other files and the adjuster with 200 other
claims to handle just hasn't gotten around to it yet. A call from you will
often get things moving again. Follow up your phone call in writing. Be
persistent.
If you genuinely believe
that the insurance company is being blatantly unfair to you, you may wish
to make a complaint with the office of your state that oversees insurance
companies. In Minnesota, this would be the office of the Minnesota
Commerce Commissioner. In Wisconsin, this would be the State Insurance
Commissioner.
If all else fails, call us.
You may need to retain a lawyer to file for arbitration or start a
lawsuit. In the appropriate case, we may be able to handle the claim for
you. Even if we can't take your case, we may be able to point you in the
right direction or suggest what you might be missing to convince the
company to pay.
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