Collision damage coverage will reimburse you when your insured car is in a collision, which you did not intentionally cause, with another vehicle or other object. Collision damage coverage will reimburse you without regard to fault for the amount of damage less your deductible, usually up to the actual cash value (not the new replacement cost) of your car at the time of the accident.
Some insurance companies will sell a stated value insurance policy which will reimburse you for the agreed value at the time you purchased the insurance even if your car is worth substantially less at the time of your car accident. Stated value insurance also known as agreed value insurance is more expensive than actual cash value insurance and is most often purchased for antique cars, collectible cars or new but expensive cars. Some actual cash value insurance policies offer replacement value insurance for a short period such as for one year after purchasing a new car.
One major advantage of purchasing collision damage coverage is that you can be reimbursed even if the car accident was your fault. Often, you may think the accident was caused by someone else, but their insurance company may not agree. In that event, you will either not be reimbursed for the full amount of the damage to your car or may not be reimbursed at all.
If the other insurance company believes that you are at fault for causing the car accident, your only recourse may be to file a lawsuit in the small claims court in the county where the defendant lives. If the defendant does not live or maintain a business, if it is a commercial vehicle, in The Bronx you will have to go to the small claims court in the county where the defendant lives. If you were injured, filing a lawsuit in small claims court for damages could have a detrimental effect on your personal injury lawsuit.
A substantial number of cars in the Bronx are uninsured. If the other car was uninsured, you will probably not be able to obtain reimbursement unless you had collision damage coverage. If the other car was uninsured, your only recourse would be to file a small claims court lawsuit but even if you win, most defendants never pay their judgments. Again, if you were injured, filing a lawsuit in small claims court for damages could have a detrimental effect on your personal injury lawsuit.
Another important advantage of purchasing collision damage coverage is that you will be reimbursed promptly so you can be driving again soon. If you are arguing with someone else’s insurance company over who caused the car accident, you may wait a long time before getting your car repaired and will have to find another means of transportation.
When you have collision damage coverage, your auto insurance company will fight with the other person’s car insurance company so you don’t have to. If the accident was really not your fault, your insurance company will fight with the other insurance company for reimbursement of your deductible. You should ask your insurance company to obtain reimbursement of your deductible and not assume that they will do it.
Even if you and the other insurance company agree on the percentage of liability, the other insurance company may not move as quickly as you would like. In the Bronx, many people have cheap auto insurance with companies that will delay you forever. Since you are not the insured paying the premium when someone else’s insurance is involved, don’t expect to be treated as if you were.
If you have been hurt in a Bronx car accident, please call Attorney Phil Franckel right now for a free consultation at 1-800-487-8911.
Speak directly to Attorney Phil Franckel, Esq. 7days/nights at 1-800-HURT-911.