By Jonathan M. Ashton, Partner, Gallon, Takacs & Boissoneault Co., L.P.A.
Serving Clients Across Northwest Ohio and Southeast Michigan
If you were injured in a car accident, you may be dealing with two very different problems at the same time.
You are hurt. You may be going to doctors, missing work, and trying to figure out what the accident is going to mean for you physically and financially.
But you also have a car sitting in a tow yard, at a body shop, or in your driveway that you cannot drive.
One of the questions people often ask me is, “Do I have to wait until my personal injury case is settled before someone pays to fix my car?”
Usually, no.
Your property damage claim and your personal injury claim generally move on separate tracks.
An injury claim may take months, and sometimes much longer, because we need to understand your injuries, treatment and long term prognosis before the claim can be properly evaluated.
Your vehicle cannot wait that long.
Quick Answer: Who Pays for Car Accident Repair Costs?
In Michigan, the answer is different because of the state’s no-fault insurance system. Under MCL 500.3105, Personal Injury Protection, or PIP, applies to accidental bodily injury and does not ordinarily pay to repair your vehicle. Michigan law also generally excludes vehicle damage from Property Protection Insurance under MCL 500.3123, except in certain situations involving properly parked vehicles. Vehicle repairs often depend on the collision coverage you purchased and, in some cases, Michigan’s mini tort law under MCL 500.3135.
The important thing to understand is this: you usually do not have to wait for your personal injury claim to settle before dealing with your damaged vehicle.
Your Injury Claim and Property Damage Claim Are Not the Same
After a serious crash, people sometimes assume everything gets wrapped into one insurance settlement.
That is not normally how it works.
There can be several different claims arising from the same accident, including:
• Damage to your vehicle
• Medical expenses
• Lost wages
• Pain and suffering and other injury-related damages
• Rental vehicle or loss of use issues
• Other property damaged in the crash
Those claims do not necessarily move at the same speed.
If the other driver clearly caused the accident and the insurance company accepts responsibility, the vehicle damage portion can sometimes move fairly quickly. The insurer can inspect the car, approve repairs, or determine that the vehicle is a total loss.
But what happens when the drivers disagree about what happened?
The insurance company may say it is still investigating.
Meanwhile, your vehicle could be sitting in a tow yard while storage charges keep adding up every day.
That is when I tell people to look closely at the coverage they already purchased.
“This is why you buy insurance, and you should not be afraid to use it. Letting impound fees or storage charges accumulate while waiting for the other driver’s insurance company to accept liability costs real money. If you have collision coverage, using it may be the most practical way to get the vehicle repaired or replaced while the liability issues are being resolved.”
Jonathan M. Ashton
Who Pays for Car Repairs After an Accident in Ohio?
Ohio generally follows a fault-based system when it comes to damage caused to another person’s vehicle.
Ohio law requires an owner’s automobile liability policy to provide at least $25,000 in coverage for injury to property in one accident. That does not mean every property damage claim is automatically paid. Liability still has to be established, and the available policy limits can matter. Ohio Revised Code § 4509.51 addresses these minimum liability limits.
If another driver caused your crash, there are generally two places you may look for payment.
Option 1: The Other Driver’s Insurance
If the other driver’s insurer accepts that its driver caused the accident, it may handle the property damage claim directly.
That can include inspecting the vehicle, approving repairs, or determining that the vehicle is a total loss.
The problem is that the other driver’s insurance company does not work for you.
Before it pays the claim, it may investigate how the crash occurred. That could mean reviewing statements, photographs, the crash report, witness information, traffic signals or video.
If liability is disputed, the process can slow down.
Meanwhile, you still need a vehicle.
Option 2: Use Your Own Collision Coverage
If you purchased collision coverage, you may be able to submit the vehicle damage claim to your own insurance company instead of waiting for the other carrier.
People sometimes hesitate to do that because they say, “But the accident wasn’t my fault.”
I understand the frustration. But using coverage you paid for does not mean you are accepting responsibility for the accident.
You may initially have to pay your deductible. Your insurance company can then pursue the responsible driver or that driver’s insurer through a process called subrogation.
Ohio’s insurance claims rules specifically address deductibles in subrogation. Ohio Administrative Code Rule 3901-1-54 states that when an insurer makes a subrogation demand, it must include the first-party claimant’s deductible and share a recovery proportionately unless the deductible has already been recovered.
In plain English, your insurer may try to get its money back, along with some or all of your deductible.
That process can take time, but it may allow you to deal with your damaged vehicle now rather than waiting for the liability dispute to end.
What If My Car Is Sitting in a Tow Yard?
Pay attention to this one.
Storage charges can accumulate quickly.
If your vehicle was towed after the accident, find out where it is, whether daily storage charges are being assessed and which insurer is handling the vehicle.
Do not assume that because somebody else caused the crash, every charge that accumulates indefinitely will automatically be paid.
Sometimes taking action through your own collision coverage can make more financial sense than allowing storage expenses to continue while everyone argues about fault.
That is a practical decision, not an admission that you caused the accident.
Who Pays for a Rental Car After an Ohio Accident?
This is another question I hear all the time.
If the other driver’s insurance company accepts liability and your vehicle can be repaired, rental costs or loss of use may become part of the property damage claim.
If you purchased rental reimbursement coverage on your own policy, you may also have another source of transportation while your vehicle is being repaired, depending on your policy terms.
But a total loss changes the conversation.
In Webster v. Davis, 2011-Ohio-1536, an Ohio appellate court considered a case where the at-fault driver’s insurer provided a rental vehicle and then stopped paying for it shortly after determining that the damaged vehicle was a total loss. The court applied Ohio precedent holding that when personal property such as a vehicle is destroyed, and its full value is paid, additional loss of use damages generally are not recoverable in the same manner as when a vehicle can be repaired.
That does not mean every Ohio driver automatically gets only two more days in a rental once a car is totaled.
It means you should not assume that the other insurance company will keep paying for a rental until you find and purchase another vehicle.
Ask early what the rental deadline is.
What Happens If My Car Is Totaled in Ohio?
A total loss can create a whole new set of questions.
“How did they come up with that number?”
“My car was worth more than that.”
“I still owe more on my loan than they’re offering me.”
Those are very common concerns.
Ohio Administrative Code Rule 3901-1-54 contains specific standards for automobile total loss settlements.
If an insurer offers a replacement vehicle, the rule addresses factors such as manufacturer, model year, body style, mileage, options, and overall condition.
If the insurer offers a cash settlement, the valuation can be based on comparable vehicles in the local market, nearby markets, dealer quotations, or recognized vehicle valuation sources, with appropriate adjustments. The rule also provides certain rights concerning documentation and sales tax reimbursement.
So if a total loss offer does not make sense to you, do not be afraid to ask:
How was the value calculated?
What comparable vehicles were used?
Were the mileage, options, and condition of my vehicle properly considered?
Can I see the valuation report?
Those are reasonable questions.
What If I Owe More on My Car Than It Is Worth?
This is where GAP coverage may become important.
A total loss settlement is based on the vehicle’s covered value. It is not automatically based on the balance remaining on your auto loan.
For example, you might owe $24,000 on a vehicle that has a covered value of $20,000.
The insurance company does not normally increase the vehicle’s value simply because you owe more on the loan.
GAP coverage may help with some or all of that difference, depending on the agreement you purchased.
If you financed or leased the vehicle, check whether you have GAP coverage and review the terms carefully.
What If the Ohio Driver Who Hit Me Has No Insurance?
This can create a much more difficult property damage situation.
Ohio Revised Code § 3937.181 requires certain insurers offering uninsured motorist coverage to also make uninsured motorist property damage coverage available. That coverage may be limited to the lesser of $7,500 or the amount otherwise available under the policy and may include a deductible of up to $250.
That does not mean every Ohio policy automatically includes uninsured motorist property damage coverage.
You need to check your policy.
If you have collision coverage, that may also provide a way to address the damage, subject to your deductible and policy terms.
Without applicable insurance coverage, recovering directly from an uninsured driver can be considerably more difficult.
Who Pays for Car Repairs After an Accident in Michigan?
Michigan is different, and this is where people understandably get confused.
I often hear some version of this:
“Michigan is a no-fault state, so doesn’t my no-fault insurance pay for my car?”
Not necessarily.
Michigan’s Property Protection Insurance, or PPI, covers certain property damage caused by a motor vehicle. But Michigan Compiled Laws § 500.3123 generally excludes damage to motor vehicles from PPI unless the vehicle was parked in a manner that did not create an unreasonable risk of the damage that occurred. Michigan Compiled Laws § 500.3121 addresses property protection benefits generally.
That is why collision coverage is so important in Michigan.
Michigan Collision Coverage Can Determine Who Pays
Michigan’s Department of Insurance and Financial Services describes three basic forms of collision coverage: limited, standard, and broad form.
The differences matter.
With limited collision coverage, payment can depend on your percentage of fault.
Standard collision coverage generally pays covered damage regardless of fault. Your deductible still applies.
Broad form collision coverage works differently. Your fault can affect whether you have to pay the deductible.
The exact coverage depends on the policy you purchased. I recommend checking your declarations page instead of assuming you know what coverage you have.
What Is Michigan’s Mini Tort?
Michigan also has a limited property damage remedy commonly known as the mini tort.
Under MCL 500.3135(3)(e), a driver who meets the statutory fault requirements can be responsible for up to $3,000 in vehicle damage that is not covered by insurance.
The $3,000 limit applies to accidents occurring on or after July 1, 2020.
For many drivers with collision coverage, the mini tort is most relevant to the collision deductible.
For someone without collision coverage, it may provide recovery for uninsured vehicle damage, but only up to the statutory limit and subject to the requirements of the law.
That distinction is important.
The mini tort does not mean the other driver’s insurance automatically pays the entire cost of repairing your car.
If you have $8,000 in uncovered vehicle damage, the mini tort does not suddenly become an $8,000 claim.
What If My Michigan Car Was Properly Parked?
This is one of the exceptions worth knowing.
Michigan’s property protection law treats a properly parked vehicle differently.
MCL 500.3123 generally excludes vehicle damage from property protection benefits. However, that exclusion does not apply in the same way when the vehicle was parked without creating an unreasonable risk of damage.
If someone crashes into your properly parked car in Michigan, the insurance analysis may be different from a typical two-vehicle collision on the roadway.
Does Michigan PIP Pay for My Rental Car?
Do not confuse rental vehicle coverage with PIP benefits.
Michigan rental reimbursement is generally optional insurance coverage. Whether your insurer will pay for a rental, how much it will pay and for how long depends on the coverage you purchased and the terms of your policy.
Again, pull out the declarations page.
A lot of the answers to these immediate post-accident questions are sitting right there.
Should I Wait for the Other Insurance Company Before Using My Own Coverage?
Not necessarily.
This is where I think people sometimes hurt themselves financially because they are focused on who should have to pay rather than what they can do right now.
If the other driver clearly caused your crash, I understand why you want that driver’s insurance company to handle everything.
But imagine your car is sitting in a tow yard at $40 or $50 a day while the insurance company investigates liability.
A week goes by.
Then another week.
At some point, waiting to prove a point becomes expensive.
If you have collision coverage that can get the vehicle moved, repaired, or evaluated, it is worth having that conversation with your insurer.
You can still maintain that the other driver caused the accident.
Questions to Ask After Your Car Is Damaged in a Crash
When someone calls me after an accident and the vehicle is becoming a problem, these are the questions I want answered:
- Where is the vehicle right now, and are storage fees accumulating?
- Has the other driver’s insurance company accepted liability?
- Do you have collision coverage, and what is your deductible?
- Do you have rental reimbursement or other transportation coverage?
- Has the vehicle been declared repairable or a total loss?
Those answers usually tell us a lot about what needs to happen next.
Frequently Asked Questions About Car Accident Repair Costs
Do I have to wait until my injury case settles before fixing my car?
Usually, no. The property damage portion of a claim can generally be handled separately from the personal injury portion of the case.
If the other driver caused the accident, should I still use my collision coverage?
Sometimes that is the most practical option, especially when liability is being investigated or storage charges are accumulating. Your insurer may later pursue the responsible party through subrogation.
Will I get my collision deductible back?
Possibly. In Ohio, insurance claims rules address an insurer’s obligation to include a first-party claimant’s deductible when pursuing subrogation and to share a recovery proportionately. Whether and when your deductible is recovered depends on the circumstances.
Can I challenge a total loss valuation in Ohio?
You can ask how the insurer calculated the value and request supporting information. Ohio insurance rules identify several methods insurers may use when determining a total loss settlement, including comparable vehicles and recognized valuation sources.
Does Michigan no-fault insurance pay to repair my car?
Not automatically. Michigan PIP coverage is not ordinary collision coverage. Damage to your own vehicle commonly depends on the collision coverage you purchased, subject to Michigan’s no-fault property damage rules and limited exceptions.
How much can I recover under Michigan’s mini tort?
For qualifying accidents occurring on or after July 1, 2020, Michigan’s mini tort can allow recovery of up to $3,000 for vehicle damage that is not covered by insurance, subject to the requirements of MCL 500.3135.
The Car Can Be Handled Before the Injury Case Is Over
After an accident, you already have enough going on.
You may be hurt. Missing work may be creating another financial concern. On top of that, you could have doctors’ appointments, medical bills, and insurance companies calling you.
You should not also have to wonder who will pay your car accident repair costs or whether your damaged vehicle has to sit untouched until your personal injury claim is finished.
It usually does not.
Your property damage claim can generally move separately from your car accident injury claim. The key is understanding which insurance coverage applies, whether the other driver’s insurance company has accepted liability, whether you have collision coverage, and what options are available to get your vehicle repaired, replaced, or moved before additional costs start piling up.
At Gallon, Takacs & Boissoneault, our team represents people injured in car accidents throughout Northwest Ohio and Southeast Michigan. We help our clients understand not only the personal injury side of an accident claim, but also how property damage, collision coverage, total loss issues, rental vehicles, and insurance claims fit into the bigger picture.
If you have questions about an Ohio or Michigan car accident, your injury claim, or damage to your vehicle, call us. We can help. 419-843-6663
Jonathan Ashton, Partner and Personal Injury Attorney, began his law career at GT&B in 2007 as a law clerk. He was hired as an associate immediately after passing the Ohio Bar in 2008. Jonathan practices in Personal Injury, representing clients who have been injured and need justice and compensation for them to move forward in their lives.
