The details associated with each option vary, depending on the extent of the damage, the identity of the person at-fault, and the nature of the available insurance coverage.

Obligations of insurance company

Must pay the claimant up to the market value of the damaged vehicle. The market value is the vehicle’s actual cash value. If the costs for repairs exceed the vehicle’s market value, then the insurance company has right to declare that the damaged vehicle is a total loss for the owner. That means that the owner should not expect money for repairs, but should instead expect to get a check that was equal to the vehicle’s value, as determined by the insurance company.

The adjuster would check on the policy limits, as stated in that insured’s policy. The insurance company would not have to pay an amount of money that exceeded the stated limit, as per Personal Injury Lawyer in St Thomas.

Methods that policyholders could use for seeking money to cover repair costs

• Make a 3rd party claim with the insurance company of the person that caused the damage.
• Use collision coverage: That covers repairs if the other driver had no coverage, or if the claimant/policyholder had been at-fault.
• Use comprehensive coverage: That covers repairs for damage to a parked vehicle.

Actions to be taken by a policyholder that has chosen to use one of the above methods

• Report the accident.
• Speak with adjuster about having the vehicle’s damage examined.
• Await estimate from insurance company
• Receive the awaited estimate.
• Take the estimate to a mechanic of your choice. Expect one of 3 outcomes:

1) The mechanic is willing to complete the repairs for the price that has been quoted by the insurance company.

2) The mechanic states that the repair shop can complete the repairs for an amount of money that is less than what the insurance company has quoted. In this situation, the claimant or policyholder has the right to pay the mechanic’s asking price and then accept the money from the insurance company.

3) The chosen mechanic states that the cost for the repairs would exceed the amount that was estimated by the insurance company. In this case, the claimant or policyholder could search for a mechanic that could do the repair work for less money, or re-contact the insurance company, and find out why the amount quoted was so low.

If the insurance company refused to offer more money, then the claimant would have to decide between either accepting the amount offered by the insurance company or targeting the same company in a lawsuit. The basis for the lawsuit would be the implied promise in issuance of an insurance policy. That implied promise would reflect the expectations of good faith practices.