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What to Do if You're in a Collision
Always call the police if:
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someone is hurt;
If no one is hurt:
Safety first: If it is safe, try to move your car to the side of the road, out of traffic. If you can’t drive your car, turn on your hazard lights or use cones, warning triangles or flares.
Just the facts ma’am:
- Jot down details about the accident, including how it happened, the time, date and location, the speed of all cars and the road conditions.
- Get the contact information (names, addresses, phone numbers) of the registered owners of all cars involved, other passengers and other witnesses.
- Get insurance information from all drivers involved in the accident, including the driver’s licence and plate numbers, and the names of their insurance companies and brokers.
Picasso you don’t have to be: A sketch of the accident scene noting the position and direction of the cars is also helpful. (You may want to keep a disposable camera in your glove box to use instead.)
Preventing further loss: If you are involved in a collision, you are responsible for protecting your car from further loss or damage. Your insurance company will, however, pay for this if you have purchased collision or all perils coverage.
It can be very stressful and confusing to be in an accident. There is a lot of information that you should note at the time. To help you, Brown & Ward Insurance provides you an accident report form Keep a copy of it in your glove box so you won’t have to worry about remembering what to write down.
Mandatory Coverages: In Case of Injury
The Alberta government mandates that you carry certain types and minimum amounts of insurance coverage. Generally speaking, there are two types of mandatory auto insurance coverage: Accident Benefits and Third-Party Liability.
Accident Benefits coverage pays for medical treatment, income replacement and other benefits to help you heal if you are injured in a collision. Accident benefits are also called “no-fault benefits,” which means they are paid to you by your own insurer regardless of who caused the collision.
The other mandatory coverage is Third-Party Liability. In most provinces, the person who did not cause the collision has the right to sue the at-fault driver for additional costs and damages not covered by Accident Benefits. Third-Party Liability covers you for the legal costs of being sued if you are the at-fault driver.
Making a Claim
Time limits
If you've been involved in a collision that may result in a claim, contact your Brown & Ward insurance representative as soon as possible. You must notify your insurer as soon as possible about any accident involving the automobile:
- that must, by law, be reported to police; or
- for which you intend to make a claim under the policy.
Most policies state that a written declaration ("proof of loss") must be made within 90 days of the accident. If you don't make your claim within this time, your insurance company may not be legally bound to honor your claim. In practice, however, most companies will honor a claim made within one year if there is a reasonable explanation of the delay.
If you are making a claim against another driver, you should notify him or her as quickly as possible. It's also a good idea to notify the other driver's insurance company of the claim yourself; don't assume that the other driver has done so.
In the unlikely event that you intend to sue your insurer, check your contract for any time limits that may apply.
Preventing further loss
If you are involved in a collision, you are responsible for protecting your vehicle from further loss or damage. The insurer, however, will pay for the damage if you have purchased Collision or All Perils coverage. You must not order repairs, other than those needed for protection of the vehicle from further loss or damage, until the insurer has consented or has had a reasonable amount of time to inspect the damage.
You cannot simply abandon a wrecked vehicle to the insurer without the insurer's consent. However, when your insurer has replaced or paid for a wrecked vehicle, the wreck or whatever is left of it (salvage) belongs to the insurer.
You must not voluntarily assume liability (responsibility) for any collision or settle any claim, except at your own cost.
Claims adjuster
Once your insurance company has been advised, a claims specialist – an "adjuster" – will be assigned to look after your claim. The amount you receive for your claim will depend on the type of coverage you bought. The adjuster's job is to determine the facts relating to the claim and the extent to which the claim is covered by insurance. The adjuster, who is paid by the insurance company, also attempts to reach an agreement with the other people involved regarding the amount of their loss and extent of their responsibility.
When you don't have Collision coverage
If the collision was the other driver's fault, you could claim payment of your damages from the at-fault driver. If it was your fault, you will be personally responsible for your damages.
Repair or Replacement
If you have Collision coverage, your insurance company will pay for the repair or replacement of your car (including equipment, but not contents), or pay you the actual cash value of your car in the condition it was in immediately before it was damaged. You will be responsible for the deductible.
When your insurer settles your claim on the basis of repairing or rebuilding your damaged vehicle, the bottom line is that you should end up with a car that is as good as yours was before it was damaged.
Should your car need replacing, you will receive a cash settlement based on the fair market value of your vehicle before it was damaged.
Betterment
The purpose of auto insurance is to return you to the position you were in just prior to the collision. In the case of your vehicle, your insurer is responsible only to pay to fix the damage. If your vehicle is made better, you may have to contribute. For example, if a rusty door panel that had been dented in a collision were to be replaced with one that is not rusty, you may be expected to contribute financially towards the "betterment" of your vehicle.
Likewise, you may wish to get additional work completed that is not directly related to the collision damage. This is permissible, but the extra work is betterment and has to be at your own expense.
Write-off
If the estimated repair cost plus the salvage value of the damaged vehicle exceeds the cash value of the vehicle before it was damaged, the insurer may decide to treat the vehicle as a write-off instead of paying to repair it. The insurer will pay you the pre-collision value of the car, minus your deductible, and keep the salvage.
Reconditioned/used parts
Repairers sometimes use reconditioned or used parts. The parts must be of the same kind and quality as the originals, and must not adversely affect the operation of the vehicle.
As any vehicle ages, it loses some of its value. That’s why the insurance company is justified in replacing damaged parts with recycled parts that are undamaged. This complies with an agreement in your policy.
After-market parts
If your vehicle is in its first production year, there will likely be OEM (Original Equipment Manufacturer) parts available to complete repair. These parts are new.
New parts may also include "after-market" replacement parts. After-market parts can be an over-run from makers of original parts, or made by manufacturers who specialize in replacement automobile parts. After-market parts approved by Certified Automobile Parts Association meet or exceed Original Equipment Manufactured specifications and are suitable replacement parts.
Safety-related parts are usually new. Regardless of the age of your vehicle, most insurance companies will insist safety-related parts required for repairs be new. For example, a 50% worn tire would be replaced with a new tire and you, as the policyholder, would be expected to pay for the extra tire life added to that wheel. This is called “betterment."
Preferred vehicle repair shops
If your vehicle is damaged but repairable (and you have the necessary coverage in your policy) your insurer will likely suggest that the repairs be carried out by one of their "preferred shops." Preferred shop programs benefit consumers in two ways: they control claims costs because prices are established in a contractual arrangement between a shop and an insurer; and they ensure that a shop’s work meets a high standard.
If you agree to send your vehicle to a preferred shop, your insurer will deal directly with the shop and will guarantee that the work is done satisfactorily. If you choose a shop that is not part of your insurer’s preferred shop program, it will be your responsibility to deal with the repair shop. Also, be aware that the insurer will not pay any more than the price quoted by their repairer.
Theft and Break-in
Criminals find it profitable to steal and sell automobile equipment and accessories. This type of loss would be covered under your automobile policy if you bought All Perils, Comprehensive or Specified Perils coverage.
However, your personal property in the vehicle, such as audiotapes (except for one in the machine), briefcases, suitcases, golf clubs, skis, bikes, fishing equipment and so on, is not covered under the automobile policy. For these things you need Homeowners, Tenants or Condominium insurance. Personal property is usually insured for up to 10% of the amount of personal property insurance or $1,500, whichever is greater, while this property is temporarily away from your premises, anywhere in the world.
You may have to pay two deductibles. There is a deductible for the automobile policy (except in certain cases such as fire or lightning). Your Homeowners/Tenants/Condominium policy has a separate deductible.
If you leave the keys in the car or leave it unlocked, the vehicle itself (and its accessories) will be covered under your automobile policy if you have purchased coverage. As for the contents, some Homeowners, Tenants and Condominium policies require visible signs of forcible entry into a locked vehicle as a policy condition. Claims from an unlocked vehicle would not be covered by these policies.
Give us a call and see why thousands of other customer's choose to insure with Brown & Ward Insurance – click on "Get a Free Quote", call us toll free at 1-888-782-3757, or contact us by email at info@brownandward.com.
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