Vehicle Repairs, Rental, and Replacement After an Accident

After a crash, dealing with vehicle damage, repairs, and transportation can feel overwhelming — especially while you’re handling medical treatment, insurance claims, and daily life. This guide explains what to expect with vehicle repairs, rental cars, and replacement, and how these parts of your claim work.

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What Happens to Your Vehicle After a Crash

When your car is damaged in an accident, the first questions usually are:

• Should it be repaired?
• Is it totaled (a total loss)?
• Will I get a rental car while mine is out of service?

The answers depend on the insurance coverage and the extent of the damage.

Repairs and Total Loss Determinations

Vehicle Repairs

If your car is repairable, the at-fault driver’s insurance (or your own, in the case of uninsured/underinsured claims) should pay to fix it. You’ll generally see one of these:

• Direct repair program: The insurer offers to repair at a shop they approve.
• Reimbursement method: You choose the shop; the insurer reimburses repair costs, up to policy limits.

Make sure repairs are done properly and documented — poor repairs can become safety issues later.

Total Loss / Replacement

A vehicle is usually considered a total loss when repair costs exceed a certain percentage of its fair market value (often 70–80%, but this varies by state and insurer).

When a total loss is declared:

• The insurer pays the actual cash value (ACV) of your vehicle — what it was worth right before the crash.
• ACV is based on age, mileage, condition, and comparable sales in your area.
• You can negotiate if you believe the offered value is too low — providing comparable listings can help.

In both Kentucky and Tennessee, the process for determining total loss and valuation is similar, though exact formulas and thresholds can vary by policy and state law.

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Rental Cars and Transportation Costs

If the Other Driver Was At Fault

If the other driver’s insurance accepts liability:

• They should cover a rental car or transportation costs while your vehicle is being repaired or you wait for a replacement.
• Coverage limits (daily amount and total days) depend on the insurer’s policy language.

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If You Have Rental Reimbursement Coverage

If you purchased rental reimbursement on your own auto policy:

• Your own insurer may cover your rental car costs regardless of fault.
• This coverage has its own limits, separate from liability.

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If Insurance Denies or Limits Rental Coverage

If the at-fault insurer refuses to provide a rental or limits rental benefits:

• Document the denial in writing.
• Provide receipts for alternative transportation (Uber, Lyft, taxis) — these may be reimbursable.
• Ask your own insurer if your policy extends transportation loss coverage.

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Replacement Vehicles and Depreciation

Total loss settlements are intended to help you replace your vehicle, but unfortunately:

• ACV is typically lower than what you originally paid.
• Older vehicles depreciate faster and therefore yield a lower payout.

To cover the difference:

• GAP insurance helps cover the gap between your loan balance and ACV.
• Negotiating the valuation with documented comps can increase your payout.

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Tips for Handling Vehicle Damage Claims

Document Everything

• Photos of the damage, scene, and license plates
• Repair estimates from reputable shops
• Receipts for rentals and alternate transportation

Keep Clear Records

• Written communication with insurers
• Notes on phone calls (date, time, person spoken with)
• Copies of estimates and bills

Avoid Early Settlement Offers

Insurance companies may offer quick, low payouts for your vehicle claim. Don’t accept an offer before:

• Knowing the full repair cost or replacement value
• Comparing market values
• Consulting with someone experienced in accident claims

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What If You Are Not at Fault?

If another driver caused the crash:

• Their liability insurer should cover vehicle repairs or a fair ACV replacement.
• You shouldn’t have to use your own collision coverage — unless the at-fault carrier delays or denies responsibility.

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Summary

Handling vehicle repairs, rentals, and replacements after an accident can be complex, but knowing your rights and the insurance process helps you make informed decisions. Whether you’re repairing your car, replacing it after a total loss, or arranging transportation, documenting your losses and understanding policy terms is key to a fair outcome.