After a car accident, most people focus on injuries first—and they should. Still, the property damage side of the claim can quickly become stressful. You may need repairs immediately, your vehicle might be undrivable, and insurance companies often move slower than your daily life requires. Questions come up fast: Who pays for repairs? What if the car is totaled? Can you recover towing and rental costs? The answers depend on fault, coverage, and how the claim is handled from the beginning.
Property damage claims are usually more straightforward than injury claims, but they can still involve delays, disputes, and confusing insurance rules. If you’re getting conflicting information or the insurer is pushing you to accept less than your loss, Panish | Shea | Ravipudi LLP can help you understand your rights, what insurance should cover, and how to avoid costly mistakes while your claim is being processed.
Understanding The Two Ways Property Damage Gets Paid
Property damage is typically paid through one of two paths: the at-fault driver’s liability insurance or your own collision coverage. If the other driver caused the crash and has insurance, their property damage liability coverage should pay for repairs or total loss value, plus related costs like towing.
If you need repairs quickly or liability is disputed, your own collision coverage may be the faster option. Collision coverage usually pays regardless of fault, but you must pay your deductible upfront. If the other driver is later found at fault, your insurer may attempt to recover what it paid and reimburse your deductible.
What Happens When The At-Fault Driver’s Insurance Pays
When the at-fault driver’s insurer pays, they will usually send an adjuster to inspect the damage, review repair estimates, and approve a repair amount. Some insurers require you to use a preferred repair shop, while others allow you to choose. You generally have the right to select a shop, although the insurer may only approve rates it considers reasonable.
Delays are common when the at-fault driver disputes responsibility or the insurer needs more evidence. In those situations, the insurer may refuse to pay until fault is confirmed. If you cannot wait, using your own collision coverage may allow repairs to begin while fault issues are sorted out.
How Collision Coverage Works On Your Own Policy
Collision coverage is the part of your policy designed to pay for vehicle damage after a crash, even if you caused it. It can be helpful when the other driver is uninsured, underinsured, or their insurance company refuses to accept liability quickly.
The tradeoff is the deductible. If your deductible is $500 or $1,000, you’ll typically pay that amount out of pocket first. After the claim is resolved, your insurer may pursue reimbursement from the other driver’s insurer through a process called subrogation. If successful, your insurer may refund your deductible, although timing varies.
The Repair Process: Estimates, Supplements, And Final Approval
Most repairs start with an estimate. Your shop or the insurer’s adjuster will list visible damage and calculate the expected repair cost. However, many vehicles have hidden damage that isn’t discovered until the car is taken apart. When that happens, the shop submits a “supplement” request for additional repairs.
Supplements can slow the process because the insurer must approve the new cost before work continues. This is one reason repairs may take longer than expected. Staying in contact with the shop and the adjuster helps reduce delays and prevents misunderstandings about what is covered.
What It Means When Your Car Is Considered “Totaled”
If repair costs reach a certain percentage of the vehicle’s value, the insurance company may declare it a total loss. When that happens, the insurer pays the actual cash value (ACV) of the vehicle, not the cost of a replacement vehicle you want. ACV is based on market value, condition, mileage, and comparable vehicles in your area.
Total loss valuations can be disputed. If the insurer undervalues the car, you can request the valuation report and compare it to real listings for similar vehicles. You can also provide maintenance records, upgrades, and evidence of condition that may support a higher value.
Rental Car Coverage, Towing, And Other Out-Of-Pocket Costs
Property damage claims often include more than repairs. Towing, storage fees, and rental cars can become major expenses quickly. If the other driver is at fault, their insurer should typically cover reasonable towing and rental costs, but they may limit how long they’ll pay for a rental.
If you have rental reimbursement coverage on your own policy, you may be able to use it immediately while fault is sorted out. Keep receipts for everything—towing, rideshares, storage fees, and rental payments—because insurers often require documentation before reimbursement.
Diminished Value: When Your Car Loses Value Even After Repair
Even after high-quality repairs, a vehicle can lose resale value because it now has an accident history. This loss is called diminished value. Some drivers can pursue diminished value from the at-fault driver’s insurer, especially when the car was newer or the damage was significant.
Diminished value claims often require a strong presentation. Insurers frequently resist paying it unless the loss is clearly supported. Vehicle history reports, repair records, and market comparisons can help show that the vehicle is worth less than it was before the crash, even if it looks “fixed.”
Common Problems That Delay Property Damage Payments
Property damage claims can feel straightforward, but payments often get held up when insurers question responsibility, coverage, or repair costs. Here are the most common issues that cause delays:
- Fault disputes: If the insurer claims liability is unclear, they may pause payment while they investigate and gather statements, reports, or evidence.
- Coverage disputes: Delays can occur if the at-fault driver’s policy is inactive, exclusions apply, or policy limits are too low to fully cover the damage.
- Incomplete documentation: Missing photos, repair estimates, receipts, or accident details can slow the process while the insurer requests additional proof.
- Repair cost disagreements: Insurers and repair shops often clash over labor rates, parts (OEM vs. aftermarket), and the overall repair scope, which can delay approval.
- Paperwork and communication issues: Claims can stall when documents aren’t submitted promptly or when follow-ups go unanswered, leading to “lost” or overlooked information.
Staying organized with photos, estimates, receipts, and a written communication log helps you respond quickly to insurer questions and reduces the chance of unnecessary slowdowns.
Property Damage Claims Move Faster With Clear Documentation And Smart Timing
Property damage after a car accident can be frustrating, but it becomes easier when you understand how payment works. The at-fault driver’s insurance may cover repairs or total loss value, but delays can happen. Your own collision coverage can speed things up, although a deductible may apply. Additional costs like towing, rentals, and diminished value often require careful documentation to recover fully.
If the process feels stalled or the insurer is undervaluing your loss, it’s important to get guidance early. Protect your records, keep receipts, and avoid signing anything you don’t understand. When the claim is handled strategically, you can restore your vehicle situation faster and reduce the financial stress that follows an accident.