A car accident can cause severe injuries for the drivers and vehicle occupants, which may result in a personal injury claim for damages. However, a car crash can also significantly damage your vehicle.
Property damage is a type of economic damage that you can recover after a car accident (or other type of personal injury incident) in Philadelphia, PA.
Pennsylvania Requirements for Property Damage Insurance Coverage
Pennsylvania requires drivers to carry a minimum amount of car insurance coverage, which includes a minimum of $5,000 in property damage liability insurance. Drivers can purchase higher limits for car insurance coverage.
Liability insurance pays for damages you cause in a car accident. If another driver causes your car crash, you can file a property damage claim against their insurance. However, if they have minimum coverage, the insurance company is only liable for up to $5,000 for the damage to your vehicle.
Many drivers purchase additional car insurance coverage to protect themselves. Therefore, if you purchased collision insurance, you may be able to file a claim against your insurance if the damages exceed the other person’s liability insurance coverage.
Gap insurance is another optional insurance policy you may purchase. It pays the difference between the insurance payment and the payoff of a vehicle loan.
In addition, Pennsylvania is a “choice no-fault” state for car insurance. Depending on the type of coverage you’ve selected, you may be able to file a claim against your own policy after a collision, regardless of whose fault it was. An attorney can help you determine your best course of action during a free case review.
Filing Claims for Property Damage After a Car Accident in Philadelphia, PA
Things to remember when filing an insurance claim for property damage include:
- The insurance company cannot force you to use a specific repair shop for the work.
- Never accept an insurance adjuster’s valuation of your property damage claim without verifying the amount through an independent mechanic or repair facility.
- The insurance adjuster may list aftermarket or used car parts on the estimate to try to lower the amount of the property damage claim.
- Before signing any documents or paperwork, read everything carefully. You must ensure you are not releasing a claim for personal injury damages.
- Do not sign a release for property damage until you inspect your vehicle and are confident the repairs have been completed.
- Get legal advice as early on in the process as you can.
The insurance adjuster may question you about the accident as they work with you to settle the property damage claim. Do not answer questions or discuss the accident.
Instead, refer the insurance adjuster to your Philadelphia car accident lawyer. The adjuster is trying to get you to say something the company can use to deny your claim or allege you caused the accident.
What Happens if My Car Is Totaled Because of an Accident in Philadelphia?
If the repairs cost more than the value of your car, the insurance company will total the car. Insurance companies often total cars when the repairs cost 75 to 85% of the vehicle’s value.
When your vehicle is totaled, the insurance company pays you the fair market value for the car instead of repairing the damage. Generally, the insurance company takes title to your vehicle after they pay you for the car.
A vehicle’s fair market value is based on several factors, including:
- Your vehicle’s make, model, and year
- The mileage at the time of the car crash
- The overall condition of your car before the accident
- Any special equipment or options you had for the vehicle
- The market demand for a vehicle like yours
Several companies estimate the value of vehicles, including NADA, Kelley Blue Book, Carfax, and Edmunds. However, if your vehicle is vintage, a sports car, or has expensive options or equipment, you may want to consult a dealer to obtain a written estimate.
As with your personal injury claim, the insurance company cannot force you to accept their offer to settle your property damage claim. You can negotiate with the company for a higher amount, especially with the help of an experienced lawyer. Documentation of the options, specialized equipment, and a dealer estimate can improve your negotiating position.
Does Pennsylvania Allow Compensation for Diminished Value for a Property Damage Claim?
Claims adjusters may not tell you you can claim diminished value as part of your property damage claim. However, if the damages to your vehicle decreased its value even after the repairs, you could be entitled to compensation for this loss.
Inherent diminished value is the difference between what your car was worth before the accident and what it is worth after the repairs are made. Even though your car may look new, an accident on the title history often reduces the market value of the vehicle.
Repair-related diminished value occurs when a repair shop uses aftermarket or used parts to repair your vehicle. The repairs may fix the vehicle, but the way the repairs were made could lower the vehicle’s market value.
Get Legal Help From a Trusted Philadelphia Car Accident Attorney
If you have questions about a property damage claim after a crash, call our Philadelphia car accident lawyers for a free consultation. We’ll analyze your case and explain your legal options to recover damages. Schedule a free consultation with our personal injury lawyers from Zavodnick & Lasky Personal Injury Lawyers at (215) 875-7030 to learn how an expert witness can strengthen your case.
