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Home > consumer Information - insurance allowance > Ombudsman"s Office > submit an Auto Damage claim with another Insurer
What friend Should understand About...
Filing an Auto Damage insurance claim with another Insurance Company

When your auto is damaged in an accident with an additional car, you have the alternative to paper a insurance claim either with your own insurance company, if you have the ideal coverages (a "first party" claim), or with the insurer for the owner the the other vehicle (a "third party" claim).

In order for you to be able to document a "first party" claim, your plan must administer Collision or substantial coverage (see right). This are frequently referred to as "Physical damage Coverages".

Collision coverage protects you from damage caused come your vehicle by a collision with another vehicle, a resolved object, or an item lying in the roadway. Collision coverage likewise protects girlfriend from damages caused by the uncomfortable of your vehicle.

You are watching: What must happen in order for an insurance company to make a payout? check all that apply.

Comprehensive coverage protects you if your automobile is steal or vandalized or damaged by call with an pet or falling objects (i.e., tree limbs, rocks, stones, debris). It likewise covers your automobile for glass breakage, fire, wind, hail, and also flood damage.

If you record a an initial party claim, her insurance agency will either pay to fix the loss to your automobile or salary you the worth of your car if the loss exceed the car"s worth. First, though, the agency will subtract the deductible lot you have chosen for that coverage. (More info on very first party claims...)

If you document a 3rd party claim, the other driver"s insurer will only pay for loss to your car to the extent that your insured was legally responsible. In some instances, this may not be sufficient to reimburse you because that the full amount of your loss.

Frequently Asked concerns
Glossary of insurance allowance Terms

1. have the right to I collection under "no-fault" insurance for damages to my car if i was at fault because that an accident and also I execute not carry first party coverage? 2. What have to I execute after a loss? 3. What wake up after I paper a insurance claim with the various other driver"s insurance allowance company? 4. Who decides that is in ~ fault for the accident and also how lot they owe? 5. The insurance agency is informing me the they are going to refuse my claim since it is not covered under their insured"s policy even though their insured is clearly at fault because that the accident. What can I do? 6. The insurance agency is informing me the their policyholder go not lug enough insurance to completely pay because that my damages. What can I do? 7. Once will the various other driver’s insurance firm contact me and how long do they have to look at my vehicle? 8. Exactly how long go the insurance agency have to resolve my claim? 9. Will the insurer need to reimburse me for renting a car? 10. What about storage fees? 11. That decides even if it is or not my vehicle can be repaired? 12. Deserve to I select my very own repair shop? 13. Have the right to I ask the insurer to introduce a fix shop? 14. Go the insurance firm have come use new parts to repair my vehicle? 15. Carry out I have to accept non-OEM parts? 16. Just how will the worth of my vehicle be calculated to recognize if the is a complete loss? 17. Can the insurer deduct for any type of damage or rust come my automobile that existed prior to the loss? 18. I found a car just like mine the costs an ext than what I gained from the insurance agency for my old car. What deserve to I do? 19. Go the insurer have actually to provide me the option to keep my auto after castle have declared it a complete loss? 20. If the insurer handle my total loss and lets me store the car, have the right to I use the settlement money to solve it rather of marketing it for salvage? 21. Walk the insurance agency have to pay turn off my car loan? 22. Have to I conclude my claim within a particular time frame? 23. What if the insurer denies my case or if ns disagree with their negotiation offer?

1. Can I collection under "no-fault" insurance allowance for loss to my auto if i was at fault for an accident and I perform not carry very first party coverage?

The price is "NO". No-fault or an individual Ibrickandmortarphilly.comury defense (PIP) insurance just pays because that your own medical costs if you are ibrickandmortarphilly.comured in an car accident, no matter who brought about the accident. That does not pay for damage to a vehicle.

2. What have to I execute after a loss? instantly report the accident to the police and exchange insurance information with the various other driver. In fact, under division of Motor vehicle law friend are forced to report any kind of accident entailing property damages in excess of $500.00 to the suitable authorities. Immediately report the accident to the other driver’s insurance money company. You should make the damaged vehicle easily accessible for inspection by the insurance company before you have it repaired. Safeguard your auto from further damage and limit your losses. If friend don"t, the insurer can refuse to salary for any kind of subsequent damage. For example, if your vehicle’s fender is damaged in an accident that reasons it come rub versus the tire, you have actually an responsibility to make emergency repair to the fender therefore no further damage will result to the tire. That is vital to save all receipts for any kind of emergency repairs together these can be submitted later on to the firm as part of your claim. 3. What wake up after I paper a insurance claim with the other driver"s insurance money company?

The other driver’s insurer will investigate the claim and also will do a decision whether come pay, negotiate or defend its insured versus the claim.

During your investigation, the insurer will require to determine the following:

Whether your insured is legit responsible for the accident and to what extent. The amount of your damages. whether your loss are directly related come the accident

While over there is no law that sets forth the details you must administer the insurer, the is in your finest interest to administer as much info as feasible to substantiate your claim.

If girlfriend fail come cooperate fully with the insurer’s investigation, they can deny your claim altogether.

4. That decides that is in ~ fault for the accident and also how lot they owe?

New Jersey has a "comparative negligence" legislation which means that an ext than one person have the right to be at fault in an accident. Under this law, you have the right to collect damages just if your level of error does not exceed that of various other driver(s) in the accident. The settlement, however, deserve to be reduced by your percentage of fault.

For example, if the other driver is 80% at fault and also you space 20% at fault, you deserve to collect for your damages due to the fact that you were not much more than 50% in ~ fault. However, the other driver’s insurer will just offer come pay because that 80% of her damages.

Other points come remember:


While website traffic citations and convictions under new Jersey’s motor car laws are components often supplied to evaluate liability, no necessarily method that a driver is 100% responsible because that an accident. The fact that another driver may have been issued a citation or was even convicted of a relocating traffic violation, and also you to be not, does no necessarily typical that some degree of liability still can’t it is in assessed to you because that contributing to the accident. As soon as you record a "third party" insurance claim with one more insurer, you carry out not have actually a contract with that insurer and also their major obligation is to their own policyholder. In a case where your version of the accident differs from the of the other driver, absent any various other persuasive evidence, the insurer will protect their policyholder, simply as friend would expect your company to protect you if a liability insurance claim were brought versus your policy.
5. The insurance firm is informing me the they are going to deny my claim because it is not extended under their insured"s policy even though your insured is clearly at fault because that the accident. What deserve to I do?

You can document an Uninsured Motorist case with your very own company, detailed you have a standard Policy, and also you deserve to be paid for your damages less the $500 policy deductible. (More info on uninsured motorist claims...)

6. The insurance company is informing me that their policyholder did not carry enough insurance money to totally pay for my damages. What deserve to I do?

You can document an Underinsured Motorist insurance claim with your very own company, noted you have a standard Policy, and you can be payment for her uncompensated damages much less the $500 plan deductible. (More information on underinsured motorist claims...)

7. As soon as will the other driver’s insurance company contact me and also how long do they need to look in ~ my vehicle?

New Jersey insurance allowance regulations call for the insurance company to contact you in ~ 10 functioning days ~ they have been informed of a loss, or if they intend to practice their best to check the damaged vehicle, they must do so within 7 working days. However, the insurance agency is under no responsibility to examine your vehicle if they perform not believe that their insured to be legally responsible (i.e., in ~ fault) for the accident.

The insurer deserve to only require your car to be made obtainable for inspection at a time and place i beg your pardon is sensibly convenient for you.

8. Just how long does the insurance firm have to work out my claim?

The insurance agency is permitted 45 calendar job to resolve your third party case from the moment they receive an alert of the loss. However, this time may be prolonged if the agency needs to conduct extr investigation or if friend fail come cooperate through them.

The insurance company must administer you through written notification explaining the reason for the delay if the claim settlement procedure takes longer than 45 days.

9. Will certainly the insurer need to reimburse me for renting a car?

It depends. Once you inform the various other party"s insurance company of your claim, you must ask them if you are entitled to payment for a rental car or other substitute transportation. When the insurance agency must call you exactly how much lock would enable for a rental car or other transportation, they execute not have to commit come making any payments till it becomes sensibly clear that their policyholder was legally responsible for the accident. Simply brickandmortarphilly.comd, once the insurance agency knows the their insured is walk to be 50% or an ext at fault, they must commit come paying for a rental auto or various other substitute transportation.

Keep in mental that brand-new Jersey insurance regulations need an at-fault driver’s insurance company to reimburse you because that the expense of a rental vehicle in ratio to their liability. For example, if the insurance agency allows $30 a job to rental a car and their insured was discovered to it is in 60% in ~ fault, castle would only reimburse $18 a day to rental a car.

The regulation does no specify the form of rental vehicle. If her damaged automobile is a specialty automobile (for example sedan, minivan, sport energy vehicle) rental reimbursement will ordinarily be because that a car of similar type. The regulation does not, however, need that reimbursement sheathe the prices of a rental auto of comparable value or "status" to the of the damaged vehicle. If the insurer provides to pay a level amount (for example, $20.00 every day), the insurer need to tell you wherein you have the right to rent a vehicle for that amount.

An insurer is only obligated come reimburse you for a rental car, or various other substitute transportation, for the duration of time till the damaged vehicle is repaired or, in the occasion of a full loss, till the claim is settled.

If your automobile is may be to be safely driven, the insurance company will only pay because that you to rental a car when your car is in reality in the shop because that repairs.

10. What around storage fees?

You may be charged a warehouse fee by one auto body shop or a storage facility. The insurance firm must give you 3 functioning days" an alert before they stop paying for storage.

11. That decides whether or not my car can it is in repaired?

After analyzing the damages to her vehicle, the insurance company has the choice of repairing your vehicle, replacing your vehicle, or reimbursing you because that the vehicle"s actual cash worth (ACV). Actual cash worth is the amount your car would have actually sold because that on the day of the accident.

The insurance agency will elect to change your car or reimburse you for the ACV, in those instances where the car is financially impractical come repair.

Motor vehicle regulations stipulate the a auto is taken into consideration economically impractical come repair, or a full loss, if the cost to fix the vehicle equals or exceeds the vehicle"s ACV on the date of the loss. In numerous instances, one insurer will complete a auto if the appraised damages equals 80% the the vehicle’s ACV due to the fact that often, once repairs space begun, additional damages or "hidden damages" are found which would certainly render the car a full loss through definition. (This is periodically referred to as a "constructive total" loss).

12. Deserve to I select my own repair shop?

Yes. Listed the fix shop is licensed, the insurer has to try to with an i agree price through the shop of her choice. If the firm cannot reach an "agreed price", castle will administer you through the names of licensed shops who deserve to do the repairs because that the price the agency has determined.

13. Can I asking the insurer to introduce a repair shop?

Yes. At her request, the agency must introduce a qualified repair facility convenient to the vehicle’s ar that will repair the car at the price the agency is ready to pay and whose job-related is guaranteed. The insurance agency further stand behind the repair shop’s guarantee.

14. Go the insurance firm have to use new parts to repair my vehicle?

No. The insurance agency is only obligated to gain back your car to the same condition it was in prior to the loss. Sometimes this calls for the use of original tools manufacturer (OEM) parts and also sometimes after-market parts deserve to be used. After-market components are components made by a manufacturer other than the initial manufacturer.

If your vehicle is being repaired with newer parts, the firm doesn"t need to pay for this "betterment". Because that example, if her vehicle"s infection is five years old, the insurer would certainly only have to replace it v a 5 year old transmission. If a five-year-old infection can"t be found, the fix shop can use a brand-new transmission yet you"d need to pay the difference in between the worth of a five-year-old transmission and a brand-new transmission.

15. Carry out I need to accept non-OEM parts?

No. While new Jersey regulations do permit the use of after-market parts as lengthy as they room warranted through the manufacturer to it is in of prefer kind and quality as OEM parts, girlfriend don"t have to accept them. The final choice is yours yet if the insurer desires to use non-OEM parts and also you decide to use much more expensive OEM parts, friend may need to pay the difference in cost.

The regulations also require the insurer to clearly indicate ~ above the appraisal which components are after-market parts and pay for any type of modifications necessary.

16. Exactly how will the value of my car be calculated to identify if that is a total loss?

Each insurance agency is forced to pick one of three prescribed techniques for use in the negotiation of every their total loss claims.

The three approaches which have been approved by the Commissioner of Banking and Insurance are:

1. acquisition the median of the retail worths of substantially comparable vehicles as provided in the existing editions that the "Automobile Red Book" (or "Older vehicle Red Book") released by Penton Media and the "N.A.D.A. Official Used auto Guide" (or "N.A.D.A. Main Older vehicle Guide") published by the National car Dealers Used automobile Company.
2. using a quote obtained by the insurer for a substantially comparable vehicle accessible for you to purchase from a dealership within 25 mile of whereby your car is typically garaged.
3. making use of the solutions of an approved source, including computerized databases that develop fair industry values that substantially similar vehicles. Right now Audatex, Mitchell International and also CCC room approved for usage in identify fair market values.

If your automobile cannot it is in valued using any type of of these three methods since they failure to represent a true cross-section the the market to recognize the fair market value of her car, the agency is then forced to use the ideal available method and totally explain come you, in writing, exactly how they calculation the amount they are providing you.

In enhancement to telling you which method is provided to worth your car, her insurance agency must also administer you through an itemized list showing all additions, deductions, and also sales taxes applicable to her vehicle.

17. Can the insurer deduct for any damage or rust come my automobile that existed before the loss?

Yes. However, deductions for previous damages or prior condition must it is in itemized v a certain dollar amount and are minimal to the amount through which the resale value of the automobile is increased by the remove of the previous damages or the mediate of the prior condition. In other words, if your auto was damaged in a previous accident and you decided not to gain it repaired, or if friend neglected the condition of your auto which resulted in the car sustaining rust, your automobile would not be precious as lot on the open sector if girlfriend tried to sell it than it would certainly be had actually you chosen to fix the previous damages or keep the vehicle in good condition. The amount whereby the resale worth of your car increases by eliminating the ahead damage, or correcting the prior condition, is the quantity the insurance company can deduct native your full loss settlement.

As new Jersey go not have actually a regulation which states just how insurers deserve to take deductions for previous damage or front condition, the example below is detailed solely for the function of providing you a far better understanding that this ide to assist in her negotiations through the insurer.

Example - A 4 minutes 1 panel damaged prior to the spanned accident i beg your pardon the insurer approximates will cost $600 to change may an outcome in the following deductions:

If the auto is 1 and also 2 year old - $600 deduction for previous damages If the auto is 3 and 4 years old - $450 deduction for previous damage If the auto is 5 v 7 year old - $300 deduction for previous damages If the vehicle is over 7 year old - $150 deduction for previous damage.

18. I uncovered a car just like mine the costs more than what I obtained from the insurance firm for my old car. What have the right to I do?

Provided you have actually located a substantially similar vehicle within 30 days indigenous receiving the company"s negotiation check, the firm will have to either:

pay you the difference between the price of the car that girlfriend found and the quantity of the insurance claim settlement. Negotiate the purchase price of the automobile that you found. Find a substantially comparable vehicle within a 25-mile radius of your vehicle’s principle place of garaging i beg your pardon you have the right to purchase in ~ the market value developed by the company in their original offer of settlement. 19. Does the insurer have to give me the option to store my vehicle after they have asserted it a complete loss?

No. When they work out a complete loss, the insurance agency assumes the rights to your car and can dispose of it yet they wish including selling it or its components for salvage. Castle can, at your discretion, let you store the car and also let you try to rescue it yourself.

If the insurer lets you keep your car, they will certainly deduct that is salvage worth from your full loss settlement.

20. If the insurer settles my total loss and also lets me save the car, have the right to I usage the negotiation money to resolve it rather of selling it because that salvage?

Yes. However, if your automobile was made 8 or fewer year from the existing model year, friend must first obtain a salvage certificate native the new Jersey Motor automobile Commission (MVC).

After the repairs space made, the car must then be presented to the MVC for a one-of-a-kind inspection prior to it can be thrust on public roads.

21. Does the insurance agency have come pay off my vehicle loan?

No. The insurer is only compelled to salary the really cash worth of the vehicle. If your car"s value is less than the loan, you room still responsible because that the difference.

22. Must I finish my case within a particular time frame?

Yes. You should either expropriate a last settlement or document a lawsuit within the time duration specified by the suitable statute that limitations.

If friend fail to expropriate a last settlement offer or to record a suit before the statutory duration runs out, you may jeopardize your best to receive any settlement in ~ all.

23. What if the insurer denies my claim or if ns disagree through their negotiation offer?

If the other driver’s insurer and you can"t reach an agreement to work out your property damage loss, friend can:

make a claim under your very own policy if you have actually the suitable coverage. Paper an appeal v the insurance company"s inner appeals panel. (If you space still unsatisfied after the company"s interior appeals panel makes its decision, you can request a testimonial of that decision by the Insurance insurance claims Ombudsman.) Seek ideal legal counsel

Important note to Remember:

Only a referee or jury can at some point decide who is at-fault for an accident or how much one more person owes you for her damages.

See more: What Are The Two Methods Of Estimating Uncollectible Receivables Are ________.

If you have any type of further concerns or would certainly like added information, you can call the department of Banking and also Insurance either through the Office of the Insurance insurance claims Ombudsman at 1-800-446-7467 or the Consumer inspection and an answer Center (CIRC) at 609-292-7272.
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