Auto Insurance Claims: insurance claim, frame damage, diminished value


Question
Hi i have never been in a accident so I am wandering how the insurance company pays for my car to fixed, my neighbor backed into it while it was parked or will they pay me to fix it myself.

Answer
Scott,

You have a few ways you can go. First, get an estimate at the shop of your choice and present it to your neighbor. In many cases, people are reluctant to file claims with their insurance company for fear of them jacking up their rates, so they will pay for the repairs out of pocket. You are under no obligation to get more than one estimate or to seek ways to save your neighbor money. If they don't wish to pay it out of pocket, then they can notify their insurance company and you can file a claim with them. Just call their local claims office or use whatever toll free number they provide.

Your last option is to file a claim with your insurance company, but remember that the amount they pay is subject to your deductible. Your neighbor should reimburse you for that amount, if you go that route. If the damage was very substantial and there was structural or frame damage, you may also want to consider filing a claim for loss of value, which is also known as diminished value. But first get your car repaired.