Car Accidents & Auto Insurance FAQs
Q: Am I entitled to a rental vehicle, and if so, for how long?
If your car needs repairs after a car accident, you may be entitled to reimbursement for the cost of a rental vehicle if your insurance policy has an endorsement for rental coverage or "rental reimbursement." Rental car reimbursement coverage is usually an optional add-on to your policy. If you're making a third party claim -- that means you’ve filed a claim with the at-fault driver’s insurance company rather than with your own -- your state may have a law requiring rental reimbursement.
Q: Are there time limits for an insurance company to pay a claim? While there are no specific time limits, most states require insurance companies to resolve all car insurance claims in a prompt and reasonable amount of time. However, what constitutes "prompt" or "reasonable" can vary based on the circumstances. Unique situations or abnormal increases in case loads -- for example, a large influx of claims due to a hurricane -- can slow the process down. Check with your state's insurance division for any specific time frames your insurer must follow.
Q: Can I require my insurance to authorize the use of original equipment parts when repairing my vehicle? My policy says they will return my damaged vehicle to "pre-accident condition." Possibly. This can depend on both the state where you live and the terms of your auto insurance policy. Some insurance companies automatically use original equipment manufacturer (OEM) parts. Others use non-OEM parts. If the repair of the damaged part directly affects the operational safety of the vehicle, your state’s law may require the insurance company to swap in an OEM part as long as one is still available. For non-safety-related parts, there may be more restrictions on the use of OEM, under both your state’s law and the terms of your policy. You may be able to insist on OEM parts, but where they aren't required you will generally have to pay the difference in cost.
Q: Can my insurance company refuse to pay my car accident claim? This is often referred to as the insurance company "denying" the claim. Most insurance policies include a section that defines what you, the policyholder, are required to do when an accident occurs, in order to have your claim covered. It's essential to follow these steps carefully. (More on reporting a car accident to your car insurance company.) Apart from a claim denial that can result from your failure to comply with the terms of the policy, a claim may be denied because the company has determined that the loss is not "covered" by the terms of the policy, or that the person who caused or suffered the loss is not an "insured" under your coverage. If you become involved in a coverage dispute with your insurance company, you may want to get the advice and assistance of an attorney who has experience handling auto insurance cases. The resolution of coverage disputes often depends on careful analysis of both policy minutiae and applicable state law, and insurance companies are notorious for mounting an aggressive defense.
Q: Do I have to hire a lawyer to defend me if I'm sued over an auto accident? When you buy liability insurance, part of the insurance company's obligation is to provide a defense for you if you are sued by the other driver -- or by anyone else injured in an accident. That means the insurance company will usually hire and pay for an attorney to represent you in court. Even though the insurance company selects the lawyer and must approve the payment of all legal fees and other expenses of the lawsuit, the lawyer represents you. You do, however, have the option of hiring an additional lawyer of your own choosing -- and at your own expense.
Q: I'm in a "no-fault" state. What does this mean if I have an accident? In most states, auto insurance functions under a traditional fault-based system, meaning that insurance companies make payments based on who was at fault for the underlying accident. But if you live in a no-fault car insurance state and you get into an accident, your auto insurance provider automatically pays for your damages (regardless of fault) up to your policy limits. In exchange for this guaranteed payment, you give up some of your rights to sue the other driver, and there may be a limit on the types of damages you’re able to collect.
Q: Are there time limits for an insurance company to pay a claim? While there are no specific time limits, most states require insurance companies to resolve all car insurance claims in a prompt and reasonable amount of time. However, what constitutes "prompt" or "reasonable" can vary based on the circumstances. Unique situations or abnormal increases in case loads -- for example, a large influx of claims due to a hurricane -- can slow the process down. Check with your state's insurance division for any specific time frames your insurer must follow.
Q: Can I require my insurance to authorize the use of original equipment parts when repairing my vehicle? My policy says they will return my damaged vehicle to "pre-accident condition." Possibly. This can depend on both the state where you live and the terms of your auto insurance policy. Some insurance companies automatically use original equipment manufacturer (OEM) parts. Others use non-OEM parts. If the repair of the damaged part directly affects the operational safety of the vehicle, your state’s law may require the insurance company to swap in an OEM part as long as one is still available. For non-safety-related parts, there may be more restrictions on the use of OEM, under both your state’s law and the terms of your policy. You may be able to insist on OEM parts, but where they aren't required you will generally have to pay the difference in cost.
Q: Can my insurance company refuse to pay my car accident claim? This is often referred to as the insurance company "denying" the claim. Most insurance policies include a section that defines what you, the policyholder, are required to do when an accident occurs, in order to have your claim covered. It's essential to follow these steps carefully. (More on reporting a car accident to your car insurance company.) Apart from a claim denial that can result from your failure to comply with the terms of the policy, a claim may be denied because the company has determined that the loss is not "covered" by the terms of the policy, or that the person who caused or suffered the loss is not an "insured" under your coverage. If you become involved in a coverage dispute with your insurance company, you may want to get the advice and assistance of an attorney who has experience handling auto insurance cases. The resolution of coverage disputes often depends on careful analysis of both policy minutiae and applicable state law, and insurance companies are notorious for mounting an aggressive defense.
Q: Do I have to hire a lawyer to defend me if I'm sued over an auto accident? When you buy liability insurance, part of the insurance company's obligation is to provide a defense for you if you are sued by the other driver -- or by anyone else injured in an accident. That means the insurance company will usually hire and pay for an attorney to represent you in court. Even though the insurance company selects the lawyer and must approve the payment of all legal fees and other expenses of the lawsuit, the lawyer represents you. You do, however, have the option of hiring an additional lawyer of your own choosing -- and at your own expense.
Q: I'm in a "no-fault" state. What does this mean if I have an accident? In most states, auto insurance functions under a traditional fault-based system, meaning that insurance companies make payments based on who was at fault for the underlying accident. But if you live in a no-fault car insurance state and you get into an accident, your auto insurance provider automatically pays for your damages (regardless of fault) up to your policy limits. In exchange for this guaranteed payment, you give up some of your rights to sue the other driver, and there may be a limit on the types of damages you’re able to collect.
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