What Can You Claim From Car Insurance After a Wreck?

There were approximately 10.2 million automobile accidents in 2008.

According to statistics released by the U.S. Census Bureau in 2011, there were approximately 10.2 million motor vehicle accidents in the United States in 2008. If you are involved in an automobile accident and make a claim with an insurance company, which is likely because automobile insurance is mandatory in all 50 states, there are several types of damages you can request compensation for.

Vehicle Damage

If you have automobile insurance with collision coverage, you can make a claim for damages sustained by your vehicle. To determine the repair amount, the company will probably either have one of its damage appraisers write a repair estimate or ask you to go to one of its affiliated repair shops. If you have a deductible, the company will subtract that amount from the settlement. When an accident is not your fault, you can also make a claim for vehicle damages with the insurance company of the negligent party. Unlike making a claim with your insurance company, there is no deductible for making a claim with someone else's insurance company.

Damage to Personal Property

When an accident occurs, there sometimes is damage to a driver's personal belongings that are in the vehicle. Most insurance policies exclude coverage for personal property belonging to the policyholder. However, when you make a claim against the insurance policy of a negligent driver, you should receive compensation for damaged belongings. A common example is when a driver's cell phone sustains damage during a car accident.

Physical Injury

The type of damages you can claim for physical injury depends on whether you are the policyholder. If you sustain an injury in an accident and are making a claim under your insurance policy, the medical payment coverage of the policy will pay your medical bills, up to the limit of the policy. If you are making a claim with the negligent driver's insurance company, in addition to receiving compensation for your medical bills, you can make a claim for pain and suffering.

Car Rental Costs

Unless you have a spare vehicle, you will need a rental car while your vehicle is under repair. The rental reimbursement coverage of your policy, if purchased, reimburses you up to a specific daily rate for your rental car expense. Daily limits typically range from $20 to $30 per day. If you are making a claim with the negligent driver's insurance company, the insurance company should reimburse your costs for renting a vehicle comparable to the one damaged in the accident, regardless of the price.

Diminution of Value

Depending on the extent of damage to your vehicle and the type of vehicle you have, your vehicle may have a diminished resale value. Most automobile insurance policies exclude this type of claim for policyholder, but laws in many states allows vehicle owners to make a diminished value claim with the insurance company of the negligent driver. To make a claim for diminished value, you will have to prove to the insurance company that your vehicle has a lower resale value.

References

• U.S. Census Bureau: Motor Vehicle Accidents; 2011
• Oregon Insurance Department: Diminution of Value
• Illinois Department of Insurance: Filing a Claim with Another's Insurance Company; September 2009
• New Hampshire Insurance Department: Your Guide to Understanding Auto Insurance in the Granite State