The crash happened. Your adrenaline is surging. You are dealing with the police, standing next to a damaged vehicle. Your future now includes insurance adjusters and repair shops. Do you know who you can trust, or what you are entitled to.
After almost 46 years representing clients in California courts, I have seen what happens when people handle this process wrong. Here’s what you need to know.
Step 1: Document Everything Before the Car Moves.
The insurance company does not work for you! Don’t believe their advertising. They do not have good hands, and do not care if you ever get back to where you belong. That is why a lizard is their spokesperson. Prepare for a coming battle.
Before driving, or towing your vehicle from the scene, take photographs. Take as many photos as possible. Capture every angle of the damage, the position of both vehicles, skid marks, traffic signals, and the surrounding scene. These photographs will be critical evidence later, particularly when the other driver and when their insurance company disputes how the accident happened. If there are witnesses, get their names and contact information. If police are there, obtain the report number.
Step 2: Report to Your Own Insurance Company Promptly.
Even if the other driver is at fault, notify your own insurer right away. Most policies require prompt reporting as a condition of coverage. Failure to report can give the insurer grounds to deny your claim. Your insurance company will use this as a technical escape hatch if you fail to promptly report the accident.
When you report, stick to the facts. Do not speculate about fault, minimize the damage, or make statements you’re not certain about. The insurance company will record your phone call. Recorded statements can come back to haunt you.
Step 3: Understand Who Pays, and Your Right to Choose.
If the other driver was at fault, their liability insurance should cover your repair costs. You will deal primarily with their insurer’s property damage adjuster.
If the other driver was uninsured or underinsured, or if fault is disputed, your own collision coverage steps in, subject to your deductible.
In either scenario, you have the right in California to choose your own repair shop. Do not let any insurance company tell you otherwise. Insurers will refer you to their preferred shops who are on their “approved” list. While it may be convenient, you are under no legal obligation to use the “preferred shop.”
Step 4: Get an Independent Estimate
Request at least one estimate from a repair shop you trust. You are not limited to using the insurer’s appraiser. Insurance adjusters many times will undervalue repairs. A trusted mechanic can identify hidden structural or mechanical damage that a cursory inspection misses.
If the insurer’s estimate is significantly lower than what a qualified shop says the repair will actually cost, push back. You are entitled to have your vehicle restored to its pre-accident condition.
Step 5: Know When “Total Loss” Applies
If the cost of repair approaches or exceeds the vehicle’s fair market value, the insurer may declare it a total loss and offer you a settlement. You are not required to accept their first offer. Research comparable vehicles in your market. If their valuation is low, and it often is, you can and should negotiate.
Step 6: Rental Coverage and Diminished Value
Two things many accident victims don’t know to ask about:
- Rental reimbursement: If you have rental coverage, or if the other driver was at fault, you may be entitled to a rental vehicle while yours is being repaired. Confirm this immediately.
- Diminished value: Even after a perfect repair, a vehicle that has been in an accident is worth less on resale. California law allows you to claim that loss in value from the at-fault party’s insurer.
When the Insurer Won’t Play Fair
It is bad faith for an insurance company to delay, lowball, or deny a legitimate property damage claim without a valid basis. California law imposes a duty on insurers to deal fairly and in good faith with their policyholders. If your insurance company does not, it can face liability well beyond the original claim amount.
Don’t let an insurance company run out the clock or wear you down. If an insurance company treats you unfairly after an accident, call my office at (714) 673-6500 or visit juryattorney.com/contact-us/. I’ve spent decades holding insurers accountable — and I know exactly where to apply pressure.
