The Definitive Guide to Car Accident Property Damage Claims in Virginia

When it comes to car accidents, “property damage” refers to the damage of any personal property involved in the wreck. This can include damage to objects within a vehicle, objects outside of a vehicle, and the vehicle itself.

In just one recent year, the National Highway Traffic Safety Administration (NHTSA) reported more than 4.8 million traffic crashes that resulted in property damage only, a number that has risen steadily each year over the past decade.

The National Safety Council estimated the number of accidents involving reported or unreported property damage and non-disabling injuries totaled approximately 10.4 million in one year. The actual number of all yearly accidents involving property damage is likely much higher.
Common types of vehicle property damage include dents, scrapes, broken glass, missing paint, broken lights, and crumpled vehicle panels or frames.

Other common types of accident-related property damage include damage to cargo or trailers attached to the vehicles involved, damage to personal electronics, and damage to landscaping, buildings, road signs, and guardrails.

Under Virginia law, drivers involved in collisions resulting in injury, death, or more than $1,000 in property damage must file an accident report with the State Police or their local law enforcement agency.

Property damage claims, which involve injury to property, are distinct from personal injury claims, which involve injury to a person’s body and mind.

What is property damage liability? When someone is financially responsible for the cost of something, they are considered liable for it. So, property damage liability is someone’s financial responsibility for the cost of property damage.

In most car accidents, property damage is caused by a careless driver, poor road conditions, automotive defects, or some other negligent party. When someone is at fault for an accident, Virginia law says they are liable for the injuries and damages they caused.

Depending on the circumstances of the accident, any of the following parties may be liable for property damage:

• A negligent driver or another road user who was impaired, distracted, drowsy, or violating traffic laws.
• An employer who was responsible for an employee who caused the crash.
• A manufacturer who was at fault for the negligent design, manufacture, assembly, or distribution of a defective car component that contributed to the crash.
• A government agency responsible for the maintenance of an unsafe road or a negligent government employee who caused the crash.

In some cases, it’s obvious who was at fault for a wreck, and determining liability is relatively straightforward. However, sometimes the specifics are fuzzy, and you may need evidence to prove another party was at fault, such as:

• Police reports – Police accident reports typically include details about who was involved in the crash, results from any toxicology tests, and official determinations regarding who was at fault. Keep in mind that the police do not have the final say on civil liability for a crash.
• Photographs – Photos from the accident can show vehicle damage, positioning, and skid marks on the road. This evidence can give investigators a better idea of how the crash occurred.
• Video footage – Videos from traffic cameras, security cameras, and dash cams can show exactly what happened in the moments immediately before and after the wreck.
• Eyewitness statements – Vehicle occupants, pedestrians, and other witnesses who saw the crash can provide powerful testimony about the factors that contributed to the accident.
• Expert witness testimony – Property claimants sometimes work with expert witnesses such as accident reconstruction specialists, who can diagram the crash to determine speed, direction, and other valuable details.

If you are involved in an accident, the steps you take at the scene can significantly impact your ability to hold negligent parties accountable for property damage. One of the most important things you can do at the accident scene is to stop and pull over at a safe location nearby. Virginia law requires drivers involved in accidents to stop, render aid, and provide their information to others involved in the crash. If you fail to do so, you could be charged with a hit-and-run violation
In most cases, it’s best to call 911 from the accident scene so police can respond, secure the area, and create their own official accident report.

After you have contacted the police, helped to arrange emergency medical care for anyone who needs it, and exchanged information with other drivers, you’ll need to notify your insurance provider of the crash per your policy agreement.

Once you have reported the accident to the insurance company, they will likely assign an adjuster to your claim. The adjuster will investigate the accident by inspecting the damage, reviewing police reports, and interviewing those involved. Afterward, they will determine what they believe to be a fair amount for any settlement money you may receive.

Insurance Coverage for Property Damage

In many cases, you may be able to rely on insurance coverage to pay for the costs of property damage caused by the accident.

Virginia is a “fault” auto insurance state, which means at-fault drivers are legally responsible for the costs of property damage they cause. Most of the time, drivers with property damage claims seek compensation from the at-fault party’s insurance company.

What is the minimum amount of property damage liability insurance required for Virginia?

Insurance laws require drivers to carry at least $20,000 in liability coverage to pay for the damage they cause to others’ property in a crash.

If the other driver was at fault, their property damage liability insurance should kick in to cover the costs of damage to your personal property.

What does property damage liability insurance cover?

If the other driver was at fault, their liability insurance should cover the costs of repairing or replacing your vehicle or any other personal property that was damaged in the wreck.

It’s important to note that you will not be able to recover compensation for property damage from other party under Virginia’s negligence laws if you were even slightly at fault for the wreck.

Assuming you were partially or fully at fault for the wreck, you may still have access to compensation through your own insurance policy if you purchased either of the following types of optional coverage:

• Collision coverage – Covers damage to your vehicle that occurs due to an accident involving another vehicle, no matter who was at fault.
• Comprehensive coverage – Covers damage to your vehicle caused by non-collision events such as theft, vandalism, or acts of nature.

When the At-Fault Driver Is Uninsured or Doesn’t Stop

Some accidents are caused by drivers who do not carry property damage liability insurance coverage. Virginia is the only state that actually allows drivers to pay a $500 uninsured motor vehicle (UMV) fee to drive on public roads without insurance at their own risk.

If your vehicle or other personal property sustains damage due to an accident involving an uninsured driver, you may be able to rely on uninsured motorist (UM) coverage for property damage expenses.

What is uninsured motorist property damage insurance?

UM property damage insurance is an optional type of coverage that pays for damage to your personal property caused by a crash with an uninsured driver.

UM property damage insurance is similar to collision coverage, but if you were partially at fault in a crash with an uninsured motorist, the compensation you could receive from a UM policy may be more limited than the compensation you could receive from a collision policy.

Leaving the scene of an accident resulting in property damage of more than $1,000 is illegal in Virginia. However, some drivers still hit and run if they are uninsured, under the influence, or attempting to avoid other consequences. For insurance purposes, Virginia classifies hit-and-run drivers as uninsured motorists.

If you sustain property damage from a collision with a hit-and-run driver, you may be entitled to compensation for the damage under your UM insurance policy. UM property damage coverage typically does not require you to pay a deductible.

When the At-Fault Driver’s Coverage Is Too Low

Drivers who carry the minimum amount of liability insurance may not have enough coverage to pay for the full extent of any property damage they cause in a crash.

When an at-fault driver does not have sufficient insurance to cover property damage they are responsible for, they are considered “underinsured motorists.” While the motorists theoretically could face a lawsuit against them personally, in practice, most underinsured drivers lack the means to pay a judgment. However, other options may be available to pay for property damage beyond the at-fault driver’s policy limits.

What is underinsured motorist property damage insurance?

Underinsured motorist (UIM) coverage is another optional type of insurance that pays for your property damage if the person who caused the crash does not have enough insurance to cover all your losses.

For example, if an at-fault driver carries $20,000 in property damage liability coverage but causes $30,000 of property damage in an accident, any UIM coverage you had would kick in to pay for the $10,000 difference.

If you need to rely on your own UM, UIM, collision, or comprehensive insurance policy for compensation after a property damage accident, it’s essential to keep in mind that even “your” insurance provider is not necessarily your friend.

Insurance adjusters are professional negotiators, and every insurance company exists to make a profit, which often means doing everything they can to minimize the amount of money you receive for your losses.

Be careful when you interact with representatives from your insurance company. Avoid providing unnecessary speculation about the crash, offering your opinions about what happened, or apologizing or admitting fault. Even innocent statements may be taken out of context and used against you later on.

Before you make any statements or agree to any settlement offers, it’s best to consult with a knowledgeable property damage attorney who can communicate on your behalf and negotiate for the full compensation you deserve.

Calculating the Extent of Your Losses

To demand compensation for property damage after a car crash, you must be able to provide a specific dollar amount to the insurance company or at-fault party when you pursue your claim.

The value of your property damage claim will depend on the pre-accident condition of your property, the extent of the damage, and the cost of any repairs or replacements needed to fix the damage.

In most cases, insurance companies will reimburse eligible claimants up to the fair market value of their vehicle at the time of the crash. If the repair costs reach a certain percentage of the pre-accident value, the insurer may declare it a total loss. Property damage appraisers typically use resources like the Kelley Blue Book to determine a car’s current value.

Certain factors may increase the value of your claim, including optional vehicle features, your vehicle’s condition before the crash, and recent improvements to the car.

Wear and tear, dirty interior fixtures, extensive damage, patchy paint, and malfunctioning systems can all decrease the value of your vehicle and any property damage claims you make.

One of the best ways to determine the cost of repairs is to obtain estimates from one or more reputable body shops. When you seek a body shop estimate, a qualified technician will inspect your vehicle to calculate a fair quote for repairs.

Some insurance companies may encourage you to visit their preferred body shops, while others allow you to select your own. It’s best to double-check your policy before you make any appointments just to be safe.

Many property damage insurance providers will say they need to complete an investigation into the accident or evaluate the damage themselves before they pay for your losses.

Insurers are required under Virginia law to conduct claims investigations promptly. If an insurer has not completed their investigation within 45 days of receiving your claim, they are required to communicate the reason for the delay to you in writing.

Forty-five days is a long time to wait, but you don’t need to allow the insurance company to delay your repairs. If you need your car back sooner, you can cover the upfront cost of repairs yourself and then submit a reimbursement request to the insurer.

When the insurance company conducts their investigation, they will likely contact you and ask you to provide your information, a statement about what occurred, and any other details you can remember about the crash.

Whether you are dealing with your own insurance company or the at-fault driver’s provider, remember to watch what you say. It’s a good idea to hire a property damage attorney who can represent you and protect your interests.

Assuming the insurance company agrees to cover the cost of your property damage, your vehicle may still be worth less after the repairs because it was involved in a wreck. This is where a diminished value claim may come in.

In a diminished value claim, you can pursue compensation from the insurance company for the difference between your vehicle’s pre- and post-accident value. If your vehicle was a high-value asset before the crash, you could be entitled to substantial compensation from a diminished value claim.

How is your car’s fair market value determined?

The fair market value of your vehicle is the price it would likely sell for in its pre-accident condition if you, a willing buyer, were lined up with a willing and informed seller.

The fair market value is not necessarily the price you paid for the car or the amount of money you have spent on maintaining or upgrading the vehicle since you purchased it. It is also not correlated to the potential price of a new car.

When insurance adjusters determine the fair market value of a car, they look at other vehicles of “like kind and quality” (LKQ) to make an educated guess.

To evaluate LKQ vehicles, an adjuster will review information from sites like Edmunds or Kelley Blue Book. These sources provide data about the value of cars based on their age, make, model, mileage, location, condition, and upgrades.

Another way to determine the fair market value is to compare it to similar vehicles that are currently for sale by private owners or used car dealerships.

What if you disagree with the adjuster’s estimate for your vehicle’s fair market value?

You or your attorney can take specific steps to introduce compelling evidence or negotiate for a better payout.

If the insurance company’s payout offer for a total loss doesn’t seem fair or reasonable, you still have options. However, you will need to do some legwork of your own to determine the actual value of your car or the cost of repairs.

It may be helpful to have an independent appraiser or an auto dealer or broker look at your car and assess how much it would have been worth before the crash.

You can do your own research into LKQ vehicles online to determine whether the quotes you received are reasonable. Then, you can use the information you find as a basis to negotiate for more compensation.

If you recently made significant repairs or upgrades to the vehicle – for example, replacing the tires or replacing the transmission – provide the adjuster with copies of invoices. If you believe your car was particularly clean or well-maintained, be prepared to document that with photos and receipts for car care, for example.

After a total loss, it’s common for insurance companies to ask you to sign a property damage release form. When you cash a compensation check the insurer gives you or sign a release, you essentially agree that the insurance company has fulfilled its obligation.

You will not have the option to go back and renegotiate for more money after you sign a property damage release form, so it’s best to consult with a knowledgeable attorney before you make any final decisions.

Repairing a Damaged Vehicle

Where should you get your car repaired?

When you need to repair a damaged vehicle after a Virginia car accident, the law says you have the right to decide where to go.

According to the Virginia State Corporation Commission (SCC), if insurers recommend the services of specific vehicle repair shops, they must inform you that you are not required to visit the shop they designate.

Insurers are also required by law to tell you if they have a financial interest in any body shops they recommend.

Sometimes, an insurance company will have special relationships with certain repair shops that welcome their referrals. This can involve sending local adjusters who regularly stop by to evaluate vehicles or even accepting estimates from shops without an adjuster there to verify.

A close relationship between an insurance company and a repair shop can make things more streamlined when you need your vehicle repaired. However, some insurers may make cost-cutting agreements with body shops that use cheap parts or shoddy workmanship, so it’s always best to do your research.

If you don’t already have a preferred body shop of your own, you can search for reputable and reliable shops by:

• Asking family and friends for body shops they recommend
• Reading online reviews for the shop from previous customers
• Researching shops that specialize in your type of car
• Checking the shop’s website for certifications and insurance
• Reviewing their Better Business Bureau page
• Calling the shop to ask about warranties and guarantees
• Speaking directly to technicians to make sure you’re comfortable with them

Should you go with original equipment manufacturer (OEM) parts or aftermarket parts?

Once you decide on the right body shop and take your car in for repairs, you will likely need to decide which type of parts you want the technician to use.

If you go to your original dealership for repairs, they will most likely use OEM parts, which are made by the manufacturer of the vehicle. An OEM part should match the parts that came with your car precisely.

When you use OEM parts, it’s usually easier to be sure you’ll get the exact component you need for the job with the right fit and finish. However, OEM parts tend to be more expensive and may not always have the superior quality to make up for it.

If you go to an independent body shop, it’s more likely that your technician will use aftermarket parts, which are any parts that don’t come from the vehicle’s manufacturer.

Aftermarket parts tend to be more widely available and much less expensive than OEM parts. However, there is a wide range in quality. Some aftermarket parts are just as good or better than OEM parts, but others are cheaper because they are made with poor-quality materials.

In some cases, it may be necessary or expedient to use salvaged parts from a wrecking yard or reconditioned parts that came from a salvaged car.

If you’re unsure whether aftermarket or OEM parts are best for your situation, you can always ask a trusted mechanic for their recommendation.

What happens if the body shop discovers additional damage during repairs?

In some cases, vehicle damage may not be included in an initial repair estimate because it isn’t visible until other parts have been removed.

If additional damage is discovered during the repair process, you could be entitled to claim extra compensation in an insurance supplement claim.

Insurance supplements are used to make up for additional damage when the damage is not accounted for on original repair estimates.

To request an insurance supplement, you’ll usually need to obtain an updated estimate from the body shop and submit it to the insurance company as proof. In many cases, the body shop will communicate directly with the insurer.

What should you do when it’s time to accept the repaired vehicle?

You should be completely satisfied with the work on your vehicle after you take it in for accident repairs.

It’s important to look over your car and make sure it looks and drives the same way it did before the accident. If there seem to be any issues or you don’t know what to look for, ask the shop to conduct a post-repair inspection to be sure.

If any issues turn up during the inspection, talk to the shop manager to see what your options may be. If you can’t come to an agreement with the shop, you can contact your insurance company or file a complaint.

If you’re still not satisfied, talk to an attorney to determine whether you have any legal options. Your attorney can also speak to the shop or the insurance company on your behalf to persuade them to do the right thing.

When Your Car Is Totaled

When people say that a vehicle is “totaled,” they are referring to the insurance term “total loss.” After an accident, a car is considered a total loss if the cost of repairing the damage is greater than the value of the vehicle itself, minus the salvage value of the wrecked vehicle.

Some states, including Virginia, have laws that define alternative thresholds for a total loss. When a vehicle is damaged in a Virginia car accident, it may be totaled if the cost of damages is greater than just 75 percent of the car’s value.

If your vehicle was worth $10,000, for example, 75 percent of its value would be $7,500. This means the insurance company may consider the vehicle a total loss if you receive a repair estimate of $7,500 or more.

When your vehicle is totaled, the insurance company is only responsible for giving enough money to cover the cost of repairs or the “fair market value” of the car, whichever is less.

If your car is beyond repair after a crash and you cannot prove that another driver was at fault, you may be able to rely on your own comprehensive insurance coverage or collision coverage to replace the vehicle.

When you still owe money on a totaled vehicle, the insurance company may make your compensation check payable to you and your auto lender. If so, you will likely need to reimburse your lender first or come to another agreement about how the money should be released.

If the amount you still owe your lender is greater than the amount of money you receive in compensation – if you are “upside-down” on your loan – you will still be responsible for the remaining balance on your auto loan.

How can you buy your totaled car back from the insurer?

When a car is determined to be a total loss, you will sign the title over to the insurer. The insurance company usually auctions it off to the highest bidder and keeps the money. In most cases, a salvage yard will buy the damaged car and sell its parts before scrapping the rest.

If you decide you would like to keep the totaled vehicle, some insurance companies may allow you to take it back. They will likely still be required to pay you the car’s fair market value, but they may deduct the amount of money they would have made by selling or scrapping it.

There are no universal standards for a totaled vehicle’s scrap or auction value, so the insurance company can determine the settlement amount themselves.

If you want to buy back a totaled vehicle before the insurance company disposes of it, you’ll need to act quickly. Once the car is scrapped or auctioned off, you’re unlikely to get it back. If you do, it may not even be worth the cost of getting back in roadworthy condition, so be sure to think it through first.

Most people rely on their vehicles for daily transportation and can’t always wait for lengthy repairs or an insurance investigation. If your car needs to be repaired or replaced after a wreck, you may be entitled to use a rental car in the meantime.

If another driver was at fault for the wreck, you should have access to car rental fees through their insurance company while your vehicle is undergoing repairs or you are waiting for a replacement.

If the other driver is uninsured or you are partially responsible for the wreck, you could still receive compensation for car rental costs if you purchased car rental insurance through your own provider.

You will usually have the right to a vehicle that is comparable to yours, but it depends on which insurance company is paying and the available policy limits.

Even if the other driver’s insurance company or your insurer agrees to pay for the car rental, you may still be required to provide a deposit or allow the rental company to keep your credit card on file before releasing the vehicle.

You are usually entitled to hold on to the rental vehicle for as long as your repairs take or until you can find a replacement vehicle. If your car is totaled, you will be expected to find a comparable replacement within a reasonable period of time.

Many car rental companies will attempt to sell you rental insurance coverage when you pick up the rental car. However, keep in mind that many collision insurance policies cover damage to rental vehicles, so it’s always good to check your plan before purchasing unnecessary additional coverage.

Auto Financing and GAP Insurance

What is GAP insurance? Guaranteed asset protection (GAP) insurance is a particular type of auto insurance coverage that protects you when your vehicle is totaled, and you still owe your lender more than it’s worth. This is sometimes called being “upside-down” on a car loan.

During the first few years after you purchase your vehicle, the balance of your loan may be greater than the depreciated fair market value of the car. This is especially common if you had a small or non-existent down payment or you purchased a brand-new car.

If a relatively new vehicle is totaled or stolen, the insurance company will still only pay you the car’s actual cash value. This means you may be responsible for the difference between the compensation you receive and the remaining balance on your auto loan. It is possible that you would be left with no car and still owe money to the lender.

When you finance your vehicle, the lender will typically offer GAP insurance in your payment plan for an additional monthly payment. Depending on your plan, GAP coverage can cover your insurance deductible and pay several thousands of dollars in benefits to pay off the loan balance on a totaled vehicle.

Compensation for Damage to Other Property

The majority of property damage caused by car accidents only affects vehicles, but crashes can damage all types of property, both inside and outside the vehicles involved.

Property damage liability insurance policies cover damage to the personal property of others caused by the policyholder. In most cases, property damage insurance policies only cover up to a certain maximum dollar amount of damage on a per-accident basis.

It’s important to note that collision insurance and comprehensive insurance are only designed to pay for damage to your vehicle. Although they are available no matter who was at fault, these types of coverage will not pay for damage to other kinds of personal property.

Common items that may be damaged inside of a vehicle and included in a property damage liability claim include:

If you wish to include personal belongings in your property damage claim, you will likely need to provide receipts or other proof of the value of the items when you submit your request to the insurance company.

Some accidents also involve damage to structures or fixed property such as fences, landscaping, road signs, guardrails, and building exteriors. If another driver is responsible for this type of damage, it may be covered by their property damage liability policy.

If the at-fault driver is uninsured or underinsured, you may be able to rely on your homeowner’s or renter’s insurance policy to cover the cost of repairs to your home’s structures or landscaping.

Settling Your Claim

When you file a property damage claim with an insurance company, your ultimate goal will be to obtain the compensation you need and settle the claim.

Keep in mind that property damage claims and personal injury claims are two separate things. The personal injury lawyers at Marks & Harrison can help you with your property damage claim if you also have a personal injury claim, but we won’t officially represent you during the property damage claim process.

Once you have obtained a reasonable estimate and determined a fair value for your claim, you should be ready to negotiate a settlement with the insurance company. An attorney can help you calculate a fair value and decide what to say during negotiations.

If the insurance company makes a reasonable settlement offer, they will likely ask you to sign a release before giving you the money.

When you sign a property damage release, for example, you are effectively stating that the insurance company has met its financial responsibility to pay for the cost of your property damages.

When you sign a general release, you agree that the insurance company has met its obligation for all your claims. This includes claims for personal injuries, medical bills, lost wages, etc.

Do not sign any release or authorization without first consulting a knowledgeable attorney. If you do, you will not be able to negotiate for more money later on, no matter how strong your claim may be.

Filing a Property Damage Lawsuit

If you can’t resolve a property damage dispute with another driver or their insurance provider – or if your own insurance provider denies or attempts to underpay your UM/UIM claim – you may have no other alternative but to take them to court and sue for the money you are owed.

Virginia tort law provides remedies for acts that cause the destruction of or damage to property. However, there are property damage claim time limits that could affect your ability to recover compensation.

The property damage statute of limitations in Virginia gives you five years to sue someone else for property damage after an accident. If you wait too long to file, the courts will likely dismiss your claim, and you will lose your right to demand compensation.

How can a property damage lawyer help?

The skilled Richmond personal injury lawyers at Marks & Harrison have been serving Virginia car accident victims since 1911. If you were injured in a Virginia crash, we may be able to support your property damage claim while we fight to recover fair compensation for your injuries.

Our firm has 11 convenient law offices throughout the state of Virginia, as well as the resources and tenacity needed to pursue your case through to the end.

We are available 24 hours a day, seven days a week, to meet your needs. Our services are available in both English and Spanish, and we never charge for your initial consultation. Contact us now to get started with a free case review.