Liability claims against the other driver

What the other driver's policy pays

Part A of the standard personal auto policy pays damages for bodily injury or property damage for which its insured "becomes legally responsible because of an auto accident." The insurer also defends its customer and settles claims as it considers appropriate. Two things follow. The insurer pays only if its driver is legally at fault under your state's law, and it pays your damages, not a policy benefit with a deductible.

• Property damage: repairs to your car, or its value if it is totaled, and other property such as a fence. Related costs such as towing, storage and a rental while the car is repaired are often part of the claim; what counts follows your state's law.
• Bodily injury: medical bills, lost income and other injury damages, up to the per-person and per-accident limits. In no-fault states, your own PIP pays first and suits for injury damages need a threshold.
• No contract with you: the insurer owes its contract duties to its customer. It still must follow your state's unfair claims practices rules, such as not refusing to pay without a reasonable investigation and trying in good faith to settle once liability is reasonably clear.

The property damage limit caps the check

The property damage limit on the other driver's declarations page is the most the insurer pays for all property damage from one accident, however many people claim and however many cars were involved. If several cars were damaged, everyone shares the same limit. State minimum limits are low in many states; Brookguard lists them by state.

If the other driver has no insurance at all, the claim moves to your own policy; see uninsured motorist claims.

How your share of fault changes the payment

Insurers assign fault in percentages, from the police report, statements, photos and the damage. Your state's fault rule then decides what your share does to the payment. Here is one claim, with $8,000 of repairs and $600 of towing and rental, so $8,600 in damages, under three state rules.

California adopted pure comparative negligence in Li v. Yellow Cab Co. (1975), so your share reduces what you recover but doesn't bar it. In Illinois, Section 2-1116 of the Code of Civil Procedure bars recovery when your fault is more than 50% and otherwise reduces it by your share. Virginia's Bureau of Insurance says that if you are responsible for the accident in any way, you could be prevented from recovering from the other party. Each state's rule is on its page in claim rules by state, for example Virginia claim rules.

• Ask how the percentage was reached: which statements, photos and report findings the adjuster relied on.
• Answer with evidence, such as a witness the adjuster didn't call, photos of signals or skid marks, or the police report's findings.
• Ask your own insurer for help when it has paid under your collision coverage; it has its own reason to contest the split.

Making the claim

1. Open the claim with the other driver's insurer using their name, policy number and the date and place of the crash. Write down the claim number and the adjuster's name.
2. Report it to your own insurer too. Your policy requires prompt notice of any accident, and your insurer may need to step in if the other side disputes fault.
3. Send the proof: photos, the police report number, witness names, repair estimates, towing and rental receipts.
4. Ask for the liability decision in writing, with the fault percentage assigned to you and the reasons.
5. Check the offer line by line against your estimates and receipts, and answer a low figure with evidence.
6. Read the release before you sign. Make sure a release for your car covers only property damage if an injury claim is still open.

As a general rule you are not obliged to give the other insurer a recorded statement, though it may want your account before it accepts fault; see giving a recorded statement.

When the claim stalls or is denied

If the other insurer won't accept fault or takes too long, your own collision coverage can repair the car now, minus your deductible, and your insurer can then pursue the other side. The NAIC model regulation says that when liability and damages are reasonably clear, an insurer should not push you to claim on your own policy just to avoid paying. Under the standard form you can't bring the other driver's insurer into a lawsuit to decide its driver's liability; the claim in court is against the driver, and state law can differ.

Questions people ask