FAQ

​If you've been involved in a minor motor vehicle accident in which no one is injured, chances are you don't need a lawyer. You may, however, need some helpful advice on how to handle your claim --to make sure you're treated fairly by the insurance company.

As a general rule, a driver who causes an accident has to pay for the damages resulting from the accident. Most people carry insurance to cover their liability.  Since minor accidents generally involve only property damage, this  information does not go into complicated issues that might apply to a personal injury claim. Minor medical bills, however, are discussed briefly.

We see certain questions from people involved in minor car accidents come up time and time again, and the answers to some of the following questions may help you to handle a minor claim without a lawyer.  However, for specific answers to specific questions you should contact a lawyer. You may contact our offices for specific answers to these and other questions which you may have, free of charge.  

SHOULD I REPORT THE ACCIDENT?
WHO PAYS FOR THE DAMAGE TO MY CAR?
HOW DO I TURN IN MY CLAIM?
HOW MUCH SHOULD I GET PAID FOR MY CAR DAMAGE?
HOW MANY ESTIMATES DO I NEED?
DO I HAVE TO GET THE CAR FIXED TO GET PAID?
SHOULD I GET MORE THAN THE COST OF REPAIR?
WHAT IF MY CAR IS "TOTALED?"
WHO PAYS FOR TOWING?
WHAT ABOUT DAMAGE TO OTHER THINGS?
SHOULD I GET A RENTAL CAR?
WHAT IF I WAS PARTIALLY AT FAULT?
WHAT IF THE OTHER DRIVER DOES NOT HAVE INSURANCE?
WHAT IF I DID NOT HAVE INSURANCE ON MY CAR?
WHO PAYS MINOR MEDICAL BILLS?
WHAT IF I WAS DRIVING SOMEONE ELSE'S CAR?
CAN I BE COMPENSATED FOR THE PAIN OF A MINOR INJURY?
HOW DOES "NO-FAULT" INSURANCE WORK?
HOW DOES UNINSURED AND UNDERINSURED MOTORIST COVERAGE WORK?
WHAT IF THE INSURANCE COMPANY WILL NOT PAY?

 

1.   SHOULD I REPORT THE ACCIDENT

Yes, if it results in enough damage.

If an accident in Minnesota results in personal injury or other damage in excess of $500, you must report the accident to the Minnesota Commissioner of Public Safety within 10 days.

If an accident in Wisconsin results in personal injury or other damage of $500 or more ($200 if government property is damaged), you must "immediately and by the quickest means of communication" notify the local police, sheriff or state patrol. Call the local law enforcement and they will fill out a police report.

If an accident in North Dakota results in personal injury or other damage of $1,000 or more, you must give notice immediately to the local police if the accident occurred in a municipality,  otherwise the accident should be reported to the sheriff or state highway patrol.

You should also report the accident to your insurance company by calling your own insurance agent. Even if you don't initially intend to make a claim on your own insurance policy, complications may arise in the future, which will require your insurance company to get involved. You don't want the company to deny coverage based upon the lack of timely notice.


2.  WHO PAYS FOR DAMAGE TO MY CAR?

The driver who was at fault must pay for the collision damage to your vehicle. You should generally turn your claim in to the other driver's insurance company if you think he or she was at fault.

You may, however, want to turn your claim in to your own insurance company. If the accident was primarily your fault, or the other driver was uninsured, you may not have any other practical choice. If you have "full coverage", including collision damage insurance, your insurance company will pay you for the damage regardless of who was at fault. Your own company may also be quicker to pay than the other insurance companies involved. The only drawback is that there is usually a "deductible" on your policy that would not apply if you were collecting from the other driver's insurer.

If the accident was your fault, or if the other car was not insured and nobody is rushing to write you a check, the choice is easy--turn the claim in on your collision insurance.

3.   HOW DO I TURN IN MY CLAIM?

A claim is turned in simply by advising the company that you were in an accident and that you have suffered some damage. This is a very informal process. Drivers are required to exchange insurance information after an accident, and you should call the appropriate insurance agent or claims center as soon as possible after the accident. Follow up your telephone call with a letter to the company confirming that you have notified it of the claim. Keep a copy in a folder containing any other information you may have on the accident, and document everything you can in writing.

The company will assign an adjuster to handle the claim. It is the adjuster's job to evaluate the damage, determine who was at fault, and then settle or deny the claim. The adjuster should take a look at your car and review any damage estimates as soon as possible. The adjuster will also want to interview you and get your version of the facts. It is important that you honestly and completely describe the accident and your damages.

4. HOW MUCH SHOULD I GET PAID FOR MY CAR DAMAGE?

You should be paid the reasonable costs of all repairs required because of the accident. The reasonable cost of repair is most often set by an estimate from a body shop. Get your estimate right away and make a demand for payment.

5.   HOW MANY ESTIMATES DO I NEED?

There is no law that says you have to get two estimates (or three, or four, or any other number). One estimate is frequently enough if the repair shop has a reputation for reasonable work and fair prices.

Some insurance companies insist upon doing their own damage estimate. Go ahead and let the insurance company look at your car, but also get a body shop of your own choosing to give you an estimate before you agree to the amount. If a dispute arises on the cost of repair, the body shop doing the repair work will often be able to resolve it for you by contacting the adjuster directly. Sometimes another independent estimate is necessary to resolve the argument.

You are not necessarily limited to the lowest bid. If the lowest bid was achieved through the body shop cutting corners, that's unreasonable. You are entitled to have your car restored as nearly as possible to its condition before the accident. Don't settle for a poor repair done at a bargain price.

6.  DO I HAVE TO GET THE CAR FIXED TO GET PAID?

No. You are entitled to be compensated for the damage to your car regardless whether or not you choose to get it fixed. If you have a car loan, however, the check from the insurance company will probably be made out to you and your bank, and the bank may insist you get the car fixed before they sign the check over.

7.  SHOULD I GET MORE THAN THE COST OF REPAIR?

If the value of the repaired car has been reduced because of the collision repair, even if done properly, you should demand an additional payment in the amount that the value has dropped. This happens, for example, when a collector car or antique car is extensively damaged and its resale value has been hurt because of the mere fact that it is no longer "original".

8. WHAT IF MY CAR IS "TOTALED?"

Your car is "totaled" if the cost of repair is more than the actual fair cash market value of the car just before the accident. If it would cost more to fix the car than it would to buy one just like it, you get the cash value of the car just before it was wrecked, rather than the cost of repair. You should also get the sales tax on the market value, plus the value of the unexpired term of your license tabs.

There is no single "book price" that decides the value of your car, but there are many sources you can look to. Bank loan officers and car dealers often have the N.A.D.A. Official Used Car Guide or similar guidebook available. Or, click here to get the value of your car from Kelley Blue Book. Some insurance companies use a "market analysis" company that prints value reports of similar cars after supposedly checking the market. If you recently bought your car, the purchase price is evidence of its value, keeping in mind that cars depreciate rapidly. Local ads for similar cars can be considered.

When the insurance company pays off on a totaled car, the company becomes the owner of the car. If you want to keep your totaled car for any reason, you should negotiate a "salvage value" with the insurance company. The salvage value can be deducted from your check if you are going to keep the car.

9. WHO PAYS FOR TOWING?

The other driver's insurance company must pay the cost of towing your vehicle from the scene of the accident to a place of safekeeping, and for storage costs until a reasonable offer of settlement is made to you. If you are collecting from your own company, however, check your policy or call your agent to see if towing or storage is covered.

10. WHAT ABOUT DAMAGE TO OTHER THINGS?

You should collect for any personal property that was damaged in the accident. If your new television in the trunk of your car was destroyed in the accident, for example, you are entitled to collect its value from the at-fault driver or his insurance company.

If the accident was your fault, however, you should look to your homeowner's insurance to pay for damaged items. Your own car insurance will not cover damage to things in the car unless specifically listed on the auto policy.

11. SHOULD I GET A RENTAL CAR?

Yes, if your car will be out of commission for more than a few hours. You are entitled to the reasonable value of a rental car during the time it takes to get your car fixed, or until the insurance company makes you a reasonable offer for the repairs or replacement. If you are collecting the collision damage from your own insurance company, however, check to see if your insurance policy covers a rental car. Some don't.

Some insurance companies want to make their own arrangements for your rental car because they get special rates. This is O.K., as long as you get a rental car that is suitable.

12. WHAT IF I WAS PARTIALLY AT FAULT?

Your fault will be compared to the fault of the other driver, and you will be paid accordingly. This concept is called "comparative fault."

If the accident was partly your fault, the other driver's insurance company will reduce the amount you get paid for your damages by the percentage of your fault. For example, if another driver pulled out in front of you from a stop sign, but you were not looking where you were going, you might be 30% at fault (the exact percentage is always a matter of opinion). If the damage to your car was $1,000.00, the $1,000.00 would be reduced by 30% and you would collect only $700.00. The exception is that if you were more than 50% at fault, the other driver's insurance doesn't have to pay you at all.

Keep in mind, however, that "comparative fault" does not apply to collecting your loss under your own collision damage insurance. Even if you were 100% at fault, the collision damage insurance on your car will still pay for all damages to your car, less any deductible.

13. WHAT IF THE OTHER DRIVER DOES NOT HAVE INSURANCE?

If you don't have collision coverage on your car you may have to sue in conciliation court.

Conciliation court is a quick and informal way to go to court without a lawyer. A small filing fee is charged and the clerk at the courthouse can show you how to fill out the papers.

Conciliation court does have its drawbacks. The dollar amount you can claim is limited. Results are easily appealed by the unhappy party, and judgments can be hard to collect. People without insurance are often also without any means to pay a court judgment.

If the damages are believed to exceed the conciliation court's limit, you should contact a lawyer.

14. WHAT IF I DID NOT HAVE INSURANCE ON MY CAR?

It is against the law to operate a car in Minnesota, North Dakota and Wisconsin without insurance, but a lack of insurance will not prevent you from collecting damages from the at-fault driver's insurance company.

You will not, however, be able to collect your no-fault benefits in Minnesota and North Dakota if you were driving your own-uninsured car.

15. WHO PAYS MINOR MEDICAL BILLS?

In Minnesota and North Dakota, your medical bills, wage loss and replacement services expenses will be paid under the no-fault insurance system (see the description of no-fault insurance below).

In Wisconsin, most car insurance policies have a medical payment clause, which pays your medical bills up to the amount stated in the policy, usually $5,000, or less. Wearing a seatbelt will often double the medical payment coverage.

16. WHAT IF I WAS DRIVING SOMEONE ELSE'S CAR?

As long as you had permission to drive, the insurance on the car covers your liability. If the car was uninsured, your car insurance will cover your liability.

If you were hurt, your Minnesota no-fault insurance will pay medical and other benefits regardless where the accident occurred.

17. CAN I BE COMPENSATED FOR THE PAIN OF A MINOR INJURY?

In Minnesota and North Dakota, you can bring a claim for pain and suffering against the other driver only if you are injured and you meet one of the thresholds described in the no-fault section below. In Wisconsin, however, no thresholds apply. If you have even a slight injury caused by another driver (a small bruise, for example), you are theoretically entitled to compensation for any pain that you have suffered. Common sense will tell you whether a claim is so minor it is not worth pursuing.

Generally speaking, any claim involving bodily injury should be reviewed by an experienced personal injury lawyer. There are no tables or charts that can be consulted to determine appropriate compensation for pain and suffering, and only past local experience in handling this kind of case will give you a ballpark idea of the appropriate amount for fair compensation.

18. HOW DOES "NO-FAULT" INSURANCE WORK?

"No-fault" auto insurance applies only to personal injuries. It does not apply to property damage. It is designed to make your own insurance company pay your medical expenses, lost income, and value of replacement services that others must do for you because of your injury. These expenses are paid regardless of who was at fault in causing the car accident.

No-fault insurance is required by law on all cars driven principally in Minnesota and North Dakota, but it is not required, or even available, in Wisconsin.

The advantage of having no-fault insurance is that medical bills, wage loss and replacement services can be paid to you within 30 days of the claim, without waiting to settle your case against the other driver.

The disadvantage of no-fault insurance is that under the Minnesota no-fault law, you cannot make a claim against the other driver for your pain, distress or disability unless you have met one or more of the following no-fault "tort thresholds":

Permanent injury or disfigurement;
60 days or more of disability;
Medical bills of $4,000.00 or more, or
Death.

In North Dakota the thresholds are as follows:

Serious and permanent disfigurement;
60 days or more of disability;
Dismemberment;
Medical bills in excess of $2,500, or,
Death.

If you will meet one of these thresholds, you do not have a "minor" claim and you should contact an attorney immediately.

19. HOW DOES "NO-FAULT" INSURANCE WORK?

Uninsured motorist coverage pays for personal injuries caused by an uninsured driver. Minnesota, North Dakota and Wisconsin all require this coverage on each policy of car insurance. 

This type of insurance acts just like the insurance that the uninsured driver should have had on his or her car, except there is no requirement that any no-fault threshold be met before payments can be made.

Underinsured motorist coverage picks up where the liability coverage of the other driver leaves off. If your personal injuries exceed the amount of the other driver's liability insurance, your underinsured motorist insurance covers the excess damages under current law.

Neither of these coverages apply to damage to your car or other property. They apply only to injuries and are very seldom an issue in the minor accident case.

20. WHAT IF THE INSURANCE COMPANY WILL NOT PAY?

Your own insurance company must respond to a claim within 30 days of receiving reasonable proof of the claim. The other driver's insurance company, however, is under no such restriction, and you may need to make yourself the "squeaky wheel" in order to get proper attention.

Identify the reason why they haven't paid. Simply call and ask the adjuster. Provide the adjuster with any proof that is missing. Frequently, it is as simple as sending a written damage estimate or a copy of the police report. Insurance companies will deny a claim if possible, but they cannot ignore a well-organized demand for payment supported by hard evidence in writing.

Insurance companies are always looking for documentation in writing. If something cannot be documented in writing, it does not exist for most insurance claims adjusters. You are therefore well advised to submit everything you can in writing from the start.

Your file may be sitting on someone's desk with many other files and the adjuster with 200 other claims to handle just hasn't gotten around to it yet. A call from you will often get things moving again. Follow up your phone call in writing. Be persistent.

If you genuinely believe that the insurance company is being blatantly unfair to you, you may wish to make a complaint with the office of your state that oversees insurance companies. In Minnesota, this would be the office of the Minnesota Commerce Commissioner. In Wisconsin, this would be the State Insurance Commissioner.

If all else fails, call us. You may need to retain a lawyer to file for arbitration or start a lawsuit. In the appropriate case, we may be able to handle the claim for you. Even if we can't take your case, we may be able to point you in the right direction or suggest what you might be missing to convince the company to pay.