Property Damage

Property damage is almost always resolved separately from the bodily injury claim, often weeks earlier. Settling the property damage portion does not affect the injury claim. Be careful not to sign a release that covers both — some insurers present a single document that wraps everything together.

If repair costs exceed a percentage of the vehicle's value (varies by state and insurer, often 70–80%), the vehicle is declared a total loss. The insurer pays the vehicle's actual cash value, not the cost of a new replacement. Actual cash value is usually calculated using industry pricing services — the insurer's first offer isn't binding, and reasonable counteroffers with comparable listings are normal.

Even after a quality repair, a vehicle with a documented accident history is usually worth less than an identical vehicle without one. Many states recognize 'diminished value' claims — the difference between pre-accident and post-repair market value. The rules vary significantly by state and often depend on whose insurance is paying.

While the vehicle is being repaired or replaced, a rental is usually covered — either through the injured person's own rental-reimbursement coverage or through the at-fault driver's liability policy. If no rental is used but the vehicle was unavailable, a 'loss of use' claim for the reasonable rental value is often available.