Who Pays for Vehicle Damage After a Maryland Crash?

If you’ve been in a Maryland car crash and your vehicle has been damaged or totaled, you’re probably wondering who is responsible for paying damages after an auto accident. Most clients’ immediate concern after a car crash, other than their injury, is their “property damage”. This is a fancy insurance-industry way of saying their car is inoperable, and they need to have it repaired or replaced right away. The attorneys and legal team at Law Offices of Larry B. Litt is here to help you manage this aspect of your case. Our legal team will guide you through the process of getting a rental vehicle, coordinating the repairs of your vehicle, or seeking fair compensation for a total loss.

In Maryland, if the car crash was another driver’s fault, you will likely be dealing with the at-fault driver’s insurance company unless they have no coverage or insufficient coverage. In that case, you may have to deal with your own vehicle insurance company to get money from your uninsured/underinsured coverage on your own policy.

Get Compensation for Your Rental Car

If your vehicle is no longer drivable due to the damage sustained in an auto accident, we will first work to get the at-fault driver’s insurance company to pay for a rental vehicle while your car is being repaired, or evaluated for total loss purposes. They will apply certain limitations to your rental, such as requiring you to rent a car similar to the vehicle that was damaged in the car wreck. For example, if your damaged vehicle is a compact car, the insurance company isn’t going to cover the cost for you to rent a large SUV.

Sometimes the at-fault driver’s insurance company refuses to pay for a rental vehicle, because they are not accepting liability. This means they do not agree that their insured was at fault for the car collision, and so they aren’t responsible for paying for your rental vehicle. Other times, you may need a rental car immediately after the car accident so that you can get to work or take your kids to school, but the insurance company won’t immediately pay for the rental vehicle because they are still investigating the facts of the accident. This means the insurance company is in the process of taking certain actions to determine whether their insured caused the auto accident, such as talking to their insured to get a recorded statement, interviewing witnesses, or examining the accident scene, the vehicles involved, or other evidence.

If this happens in your case, we can review your own auto insurance policy to determine if you have rental car coverage. If you do, this means that your own insurance company will pay for your rental vehicle. Don’t feel sorry for them; this is what you pay for each month, and they will seek reimbursement from the at-fault driver’s insurance company after the fact. If you have rental vehicle coverage on your own car insurance policy, it is usually limited to a certain amount per day, for a particular amount of time.

Vehicle Repair and Total Loss Evaluation

We can coordinate with reputable auto repair shops to ensure your vehicle is properly restored to its pre-accident condition. However, sometimes the damage to a vehicle is so significant that it is not repairable, or not worthy of repair. That’s when a car is deemed a total loss.

Many clients have strong feelings about whether their vehicle gets totaled or not. Some people really want their vehicle repaired and some really want it to be deemed a total loss. (An important factor is often whether the vehicle is already paid off. No one wants a car payment when they are used to having no car payment). Unfortunately, the decision is not made by our clients. The insurance company gets to make this decision. As a rule of thumb, the insurance company will generally deem your vehicle a total loss if the cost to repair it exceeds 80% of the vehicle’s value. Thus, if you have a vehicle that’s worth $10,000.00 and the repair shop determines the cost to repair it will be $9,000.00, the insurance company is going to deem it a total loss.

If your vehicle is deemed a total loss, the Law Offices of Larry B. Litt will help you determine its fair market value to ensure the insurance company doesn’t try to give you less money than your vehicle is actually worth. We will work diligently to ensure that you receive the actual value of your vehicle.

Maryland Is a Diminished Value State

Since Maryland is a diminished value state, you may be entitled to a diminished value recovery. If your vehicle has been repaired but has lost market value because of the car crash, you may have a claim for diminished value. In other words, the law may give you the right to be compensated for the loss of value of the vehicle caused by diminution in value in addition to the costs associated with the repairs to your vehicle. Most importantly, you do not have to sell your vehicle in-order to recover.

What Causes Diminished Value? Why Is a Car Worth Less Even After Being Repaired?

It is important to understand that the resale value of your vehicle is greatly affected even if you get it repaired after a serious collision. Regardless of the kind of repair parts used to fix your vehicle, they can never replace the original, factory parts. The use of seam sealers and non-factory welds leave telltale signs of the repairs. Moreover, the application of paint in a body shop during repairs can never duplicate the factory finish even if the body shop did a great job. This type of non-factory paint work is detectable using inexpensive equipment and is routinely used by car dealerships when determining trade-in offers. This is exactly why a car buyer will never pay as high a price for a repaired vehicle as he/she will for a car with no accident history. To cover that loss, claiming diminished value makes sense. Diminished value is basically the loss in market value of the vehicle due to an auto car accident.

When Are You Eligible to File a Diminished Value Claim in Maryland?

You can make a diminished value claim in Maryland and get compensated if:

• You are involved in an auto accident
• You are the owner of the vehicle involved in the car accident
• You are making a claim against the other, at-fault, driver
• Your vehicle is NOT declared a total loss

Please note, the statute of limitation on this diminished value claim in Maryland is three (3) years and we do pursue uninsured motorist coverage for diminished value. However, you cannot make diminished value claims in Maryland if you are the at-fault party in the auto accident or if your vehicle is declared a total loss.

Personal Property Losses

Property damage extends beyond your vehicle. Items inside your vehicle at the time of the car crash may also be damaged or destroyed. This can include glasses, electronics such as phones, laptops or watches, work tools, clothing, luggage or any other personal belongings. Document these losses with photographs, receipts, or other proof of value.

Schedule a Free Consultation and Get Started on Your Case

When a car crash damages your vehicle or personal belongings, you have the right to seek compensation for those losses. Property damage claims are a type of economic damage with a clear monetary value, making them generally easier to calculate than injuries. However, insurance companies still employ tactics to minimize what they pay, so understanding your rights helps ensure fair compensation.

At the Law Offices of Larry B. Litt, we understand how difficult it can be to move forward with your life after a serious car crash. That’s why our legal team is here to fight for the compensation you need to secure a rental vehicle, cover any medical bills you’ve incurred, and get back to your normal way of life. The at-fault insurance company adjuster is not your friend. Contact the Law Offices of Larry B. Litt today at 443-844-1528 to schedule a no-obligation case evaluation, learn more about whose insurance company pays for your damaged vehicle, and rental car after an auto accident, and get started on your case. We are available 24/7/365.