After a car accident, you may be left wondering who will actually pay to get your car fixed (or replaced). As we'll explain, the answer usually depends on who was at fault for the accident, and the available insurance coverage. Here's what to know at the outset:
- The driver who causes a car accident is on the legal and financial hook for any resulting vehicle damage.
- In most instances, an at-fault driver's car insurance (specifically, their property damage liability coverage) will pay to repair or replace the other driver's vehicle (up to coverage limits).
- Your own collision coverage and/or uninsured motorist property damage coverage can be used if the at-fault driver has no (or not enough) car insurance.
Vehicle Damage From an Accident Caused By Another Driver
If another driver is at fault for your car accident, they're financially responsible for your vehicle damage. In most cases, the other driver has insurance. If the other driver is uninsured, you can have your insurance company pay for your car damage—if you have collision coverage and/or uninsured motorist property damage coverage. If you don't have these coverages, you can file a lawsuit against the other driver to try to make them pay, but it might be difficult. Drivers who don't have car insurance usually don't have piles of cash laying around that can be used to pay to repair your car.
Let’s look at a few different scenarios that can spring up when the other driver caused your accident.
If the Driver Who Caused Your Accident Has Insurance
Liability insurance covers damages for which a driver is legally liable. In car accident insurance lingo, property damage mainly means damage to your car. Therefore, your claim to have your car damage repaired will be against the other driver's "property damage liability insurance." (Learn more about different types of car insurance coverage.)
Almost every state has a law requiring drivers to have liability insurance, including property damage liability insurance. $10,000 is a common minimum coverage requirement for property damage liability insurance, but your state may have a different minimum requirement. And, of course, the at-fault driver might have more insurance coverage than the bare minimum.
So, since property damage liability insurance is usually required, the driver who caused your accident should have this kind of coverage in place. And if the driver's insurance company agrees that its insured caused the accident—and is therefore liable for paying damages—they will pay for your car repairs.
Learn more about making a third party car insurance claim with the other driver's insurer after a car accident.
What About Vehicle Damage In No-Fault Car Insurance States?
Even in no-fault car insurance states, the driver who caused the accident will still be on the financial hook for vehicle damage and other property-related losses. That's because no-fault (or "personal injury protection") coverage only applies to car accident injuries, not vehicle damage.
If the Driver Who Caused Your Accident Has No Insurance, But You Do
What if the driver who caused your accident doesn't have liability insurance? Or, what if the at-fault driver has insurance but their insurance company will not admit that their insured caused the accident? In these situations, the best place to turn is to your own car insurance company—provided that you have collision coverage and/or uninsured motorist property damage coverage.
Using Your Collision Coverage to Pay for Vehicle Damage
If you have collision coverage, your insurance company will pay to repair your car, regardless of who caused the accident. However, there is a certain portion of the cost—called the “deductible”—that you're responsible for paying. Let's say you have collision coverage up to $20,000 with a $500 deductible (the higher the deductible, the lower the cost of the insurance). In that situation, it will cost $12,000 to repair your car, your insurance company will pay $11,500 and you'll pay the deductible amount of $500.
So, can you get your deductible back? If the driver who caused your accident has no insurance and is financially unable to pay, it may be difficult. You can try to recover by suing that person. However, remember that getting a judgment against someone in court is not the same as collecting the judgment. To collect, the other driver must have something (a bank account or some other property with equity in it) that you can "execute on" to collect your judgment.
If you have your car repaired by your insurance company under your collision coverage, and the driver who caused your accident has insurance, you should be able to get your deductible back from that driver's insurance company. Usually, your insurance company will get it for you. This process usually takes anywhere from a few weeks to a few months.
Using Uninsured Motorist Property Insurance to Pay for Vehicle Damage
Uninsured motorist car insurance coverage, if you have it, usually applies to injuries caused by an accident. But you can usually purchase a targeted policy add-on called "uninsured motorist property damage insurance" (or something similar), which can be used to pay for vehicle repairs when the person who caused your accident has no insurance.
The Driver Who Caused Your Accident Is Uninsured, and So Are You
This is the tough one. If you have no car insurance, the at-fault driver is still responsible for paying for your car repairs. But, as a practical matter, if they're also uninsured, you can't collect from someone who has nothing. You can always file a car accident lawsuit against the at-fault driver, on the off chance that they'll come up with money to repair your car.
In many states, if a person has a judgment against them arising out of a car accident, their license will be suspended when you notify your Motor Vehicle Administration (or Department of Motor Vehicles, or whatever it's called in your state) of the judgment. That can put serious pressure on the at-fault driver to come up with the repair money.
The Driver Who Caused Your Accident Has Insurance, and So Do You
If the driver who caused your accident has liability coverage, and you have collision coverage, you have a choice. You can have either insurance company pay to repair your car damage. Which is better?
The argument in favor of having the other driver's insurance company repair your car damage is that you won't have to pay a deductible. In addition, the other company must pay for a rental car while your car is being repaired, but your insurance company only has to pay for a rental car if you have rental reimbursement insurance. The main argument for having your insurance company pay to repair your car damage is that you have certain rights under your insurance policy—such as a quick and cost-effective process for resolving disputes—that you don't have when you deal with the other driver's insurance company.
A final consideration is the amount of coverage. If the other driver doesn't have enough coverage to pay to repair your car, and you do, of course you should have your insurance company pay.
Vehicle Damage From a Car Accident You Caused
Even if you caused the car accident, your insurance company will pay to repair your car, if you have collision coverage. Remember that collision coverage applies regardless of who was at fault for the crash. But you will be out the deductible. If you caused the accident and don't have collision coverage on your car, you’ll end up having to pay out of pocket.
Do I Need a Lawyer For a Vehicle Damage Claim?
You can usually handle a straightforward vehicle damage claim on your own after a car accident. But in some situations it might make sense to discuss your situation with an attorney, especially when you've also suffered car accident injuries or there are other crash-related loose ends to tie up. Learn more about when to get a lawyer's help after a car accident.