When your car is damaged in a collision, you have two primary paths to get it fixed or replaced. Below, I’ll outline each option, the process involved, and key legal protections under Louisiana law.
Using your collision coverage offers a faster resolution but may require paying a deductible upfront, which is typically refunded after subrogation. Filing with the at-fault party’s insurance avoids a deductible but often involves a longer wait due to the need to establish liability. Both options have their advantages, and the best choice depends on your circumstances and priorities. Consult with an experienced car accident attorney to determine which option is the best for your situation.
At Chaz Roberts Law, we want you to feel comfortable in your decision and our personal injury attorneys will keep you informed every step of the way.
Option 1: Using Your Collision Coverage
If your auto insurance policy includes collision coverage, you can file a claim with your own insurer to begin the repair or replacement process immediately. Your insurance company is legally obligated to start processing your claim promptly, without waiting for a police report or a determination of fault. This option is efficient because it bypasses the need to establish liability upfront.
However, if your policy includes a deductible—typically $500 or more—you’ll need to pay that amount out of pocket initially. Your insurer will then pursue reimbursement from the at-fault party’s insurance through a process called subrogation, which allows them to recover their costs and, in most cases, refund your deductible once the claim is settled.
If your policy includes rental car coverage, your insurer will provide a rental vehicle while your car is being repaired or if it’s deemed a total loss and undrivable. This ensures you’re not left without transportation during the process.
Option 2: Filing with the At-Fault Party’s Insurance
Alternatively, you can file a claim with the insurance company of the driver responsible for the accident, known as a third-party claim. Under this option, the at-fault party’s insurer is legally responsible for covering the full cost of your vehicle repairs or replacement without requiring you to pay a deductible. They are also obligated to provide a rental car or compensate you for “loss of use” if you’re without your vehicle.
The challenge with this approach is that it requires establishing liability, which often depends on obtaining a police report. This report can take 7 to 10 days to become available, and the subsequent process of notifying the third-party insurer and negotiating the claim can extend the timeline to two or three weeks. In cases where the at-fault driver admits responsibility, the process may be resolved more quickly, potentially within a week. However, delays are common due to the need for thorough investigation by the third-party insurer.
Louisiana Law on Insurance Rates
A critical point to understand is that, under Louisiana law, your insurance company cannot increase your premiums, cancel your policy, or penalize you in any way for filing a claim under your collision coverage when you are not at fault. This protection exists because your insurer will recover their costs through subrogation, ensuring they bear no financial loss. This legal safeguard provides peace of mind when choosing to use your own coverage.
Get the Legal Support You Deserve After a Car Accident
Navigating collision repair or total loss claims can be overwhelming, but you don't have to face it alone. Chaz Roberts Law is here to guide you every step of the way. With extensive experience in Louisiana insurance laws, we’ll ensure your rights are protected and help you choose the best path forward. Whether it’s dealing with deductibles, liability delays, or recovering your costs, we’ve got your back.
Contact Chaz Roberts Law today for trusted legal support and personalized assistance. Don’t wait to get the resolution you deserve!
