So, you’ve just had a nasty car crash and managed to survive. The car, on the other hand, was not that lucky. In fact, the damage to your car was so severe the insurer deemed it “totaled.” What happens next?
The first question that pops into mind in such scenarios is, “Who’s at fault?” In most states, the at-fault driver’s insurer covers the repairs. Compensation for lost wages and injuries is a different story. And that depends on your state’s type of auto insurance system – no-fault or tort. (You can learn more about the U.S.A.’s auto insurance systems here).
In this article, we’ll discuss who has to pay car damages and to what extent. Long story short: if you are at fault, that’s the business of your insurer. If the other driver is at fault, it’s their car insurance company’s problem. If you are an employee and the car crash happened during working hours, your employer may be liable too, to some extent.
Who Determines Fault?
Finding out who caused a road accident is time-consuming, and car insurance companies are happy to let things drag on. That means there’s a higher chance for you to give up or accept their (lousy) offer. Many people accept lower settlement offers because they don’t know their rights. That is upsetting because most of those people are not even at fault.
If you think that the other driver is at fault, don’t quarrel with their insurer. Don’t admit fault or place blame on the other party at the police either. Don’t even apologize. An apology may be used as an admission of fault.
In such cases, just stick to the facts. Let the police and insurers determine fault based on those facts.
What You Absolutely Need to Do After a Crash
You need to secure the evidence you’ll use to prove you were not at fault. After a traffic incident, you need to:
- Seek medical care. If you or other people involved in the incident are injured, seek emergency care.
- Call the police. The police will issue a report and determine fault. Don’t expect the insurer to accept the police’s initial assessment of fault, though.
- Exchange info with the other driver. Get their full name, address, phone, license plate number, insurer and policy info, etc.
- Get witness contact info. You might need the witnesses to prove your innocence later on.
- Take photos of the car and the accident scene. Focus on all the details that may help determine the cause of the crash. Take snaps of skid marks, vehicles’ position, car damage, etc.
- Contact your insurance company. Contact your insurer to report the crash even if it’s not your fault.
Don’t talk to other insurer’s representatives without a car accident lawyer.
What Happens If You Were Traveling for Business?
If you crashed the car on your employer’s time, you might be eligible for workers’ compensation benefits. The good part about workers’ comp is that you can qualify for it regardless of fault.
You just need to prove that you had the accident while on the job. Having an incident while commuting to or from work does not qualify you for workers’ compensation. You need to be under your employer’s control and get the injuries in the “course and scope” of your job. But you better hire a personal injury attorney in this case.
After the accident, the insurer may decide to declare your car a “total loss.” This can happen even if you are not at fault. Insurers opt for total loss if the damage is so severe the repair costs would be greater than the car’s ACV. ACV stands for Actual Cash Value, which is the sum you would get for selling the car as is today. At least in theory…
Bear in mind that an insurer agrees to pay for a car total loss not at fault only if the liable driver’s insurance policy covers the crash. If the at-fault driver is uninsured or underinsured, you may file a lawsuit against him. The chances of collecting anything in this case, though, are quite slim.
If you wrecked the car while on the clock, there’s an additional source of compensation for the victim. When you are at fault, your employer’s auto insurance can make up for what your own car insurance fails to cover. Under the law, though, your employer is not liable for any damages brought to your personal car. He may lend a helping hand only out of the goodness of their heart.
Each state has a total-loss threshold. This means that what may be salvageable in Texas may be a total loss in Iowa. But how the insurer’s estimates your car’s value may not be fair to you. You can accept their initial valuation or bring a lawyer and negotiate the amount.