Dealing With The Insurance Companies

Which insurance company should I contact?

The "exchange card" or other information you have obtained from the other driver should tell you if that party has insurance. If you believe the collision was the fault of the other driver, you should contact that driver's insurance company. As a precaution, you should also report the collision to your own insurance company.

What will the insurance companies do?

The insurance company will investigate the claim and make its determination regarding liability or fault (that is, who is responsible for the collision). The insurance company often will ask you to give a written or recorded statement of your version of the collision. You are obligated to cooperate with your insurance company. You do not have to give a statement to the other party's insurance company. Before providing any type of statement to the insurance companies, you should make every effort to prepare for the statement and organize your thoughts so the statement is an accurate description of what happened. You should not give a statement while taking medication that impairs your ability to think and communicate clearly. You should also be careful to answer only the questions asked. Do not volunteer any information. Be wary. The insurance company's objective is to not pay you.

What happens when more than two vehicles are involved?

Multiple vehicle collisions can become very complex. If you believe two or more other parties were at fault for the collision, you should contact each party, or the insurance company for each. In North Carolina, each party may be responsible for all of your damages.

What if the collision was partially my fault and partially the fault of the other driver?

If you think the collision was partially or entirely your fault, you should contact your own insurance company. North Carolina is one of only four remaining states that still follows a discredited and unfair legal principle known as "contributory negligence." This means that if you are even slightly at fault in the collision, you are not entitled to any recovery against the other driver. Instead, you need to make a claim under the collision coverage of your own policy. In essence, you can only recover from the other driver or under your uninsured motorist coverage if you were not in any way at fault.

What should I do if the other party does not have insurance?

All vehicles in North Carolina are required to have minimum levels of liability insurance. Unfortunately, some drivers are not in compliance with the law. If the other party was not insured, you can make a claim under your uninsured motorist coverage with your own insurance company. It will apply up to the limit of the coverage. If you rejected uninsured motorist coverage, you can make a claim under the collision coverage of your own policy, assuming the damages exceed your deductible. If you do not have any insurance available, however, your only option will be to attempt to recover your damages from the driver or owner of the car that caused the collision. If you want to have your car repaired immediately, you will most likely have to pay the cost yourself and then try to recover that expense from the other driver or his insurance company. You can start that process by sending the other driver a letter, along with copies of the estimate of repair bills, and ask for payment for the cost of the repairs. It may be necessary to work out a payment schedule if the other person is not able to pay all the damages at once. If the person responsible for the collision refuses to pay your damages, your only recourse may be to file a civil lawsuit.

Am I entitled to a rental car?

As a basic rule, if the other driver caused the collision and your car is not safe to operate or is undergoing repairs, you are entitled to a rental car or compensation for the loss of use of your car while it is inoperable. Whether the other driver's insurance company will assist in providing you with a rental car varies from company to company.

Some insurance companies will provide a rental car for your use until your vehicle is repaired. In that case, you generally will not have to pay any money out of your pocket. Other insurance companies will require that you rent a car on your own and the company will reimburse you at a fixed daily rate. This rate is usually fairly low, so you should shop around to get the best rental rate.

Some insurance companies will compensate you on a weekly basis while others will not reimburse you until your entire claim is settled. Although you are entitled to a car that is comparable to the car that was damaged, as a practical matter, most insurance companies willingly compensate you only for basic transportation at a fairly low rate. If you rent a more expensive car and pay for the difference out of your own pocket, it may be difficult for you to obtain the difference from the insurance company without getting involved in a lawuit.

The rental car will be available to you until your car either is repaired, or the insurance company "totals" your car. You are entitled to a rental car or loss of use compensation even if you have other transporation available to you. Some car rental companies have "replacement car" rates that are lower than regular rental charges. Be sure the rental company knows you are temporarily replacing a damaged vehicle.

If you are unable to make appropriate arrangements with the other driver's insurance company, you should check your own policy to see whether or not you have coverage to provide a rental vehicle.

Finally, be aware that most insurance companies will not pay the "Collision Damage Coverage" expense that the rental car company might charge. When renting a car, consult your insurance agent to determine if your own policy includes collision coverage for the rental car. If it does, you can provide your policy information and waive the collision damage coverage.