Property Damage – To Cash Out or Not?

One consideration that arises after a car accident is whether to take a cash out or to have the vehicle repaired. Generally speaking, it is best to have the vehicle repaired, unless two conditions exist, 1.) you don’t care about having the vehicle repaired, and 2.) you were not injured, and you never pursue an injury claim.

The insurance company will often offer to give you a check for the damages that are visible from eye level, and many times the injured party will accept that amount, use it for bills and never have the vehicle repaired. Months (or in rare cases years) later the insurance company asserts that you were not injured or were not insured as badly as claimed based on insignificant damage to the vehicle. The argument is that if there were sufficient forces to cause an injury it would be expected that there would be more damage to the vehicle. This many times is referenced as a ‘No Mechanism for Injury’ argument. However, if the vehicle were taken to an independent repair shop, torn down, inspected, photographed and documented, damages to the brackets, supporting members, and even frame becomes apparent. This in effect eliminates the insurance companies ‘No Mechanism for Injury’ argument.

The insurance company may also offer you to work with one of their trusted body shops to perform the repairs and will even make assertions that they will warranty the work for as long as you own the vehicle. Keep in mind, regardless of whether the insurance company is your insurance company or the insurance of the party that caused your damage, you have the right to use any body shop that you choose. (CA Insurance Code ยง 1874.87.) Because you have the right to select your own collision repair facility, it is advisable to not use a body shop that may be influenced by their contract with the insurance company. Rather, it is better to call a reputable dealer and find out who they use for their body work or use their collision repair facility if they have one. Generally, these shops will be more customer focused and will be incentivized to find hidden damage that may significantly impact a future injury claim.

Take a look at the below picture:

In this rear end collision, you will notice that the rear bumper of the vehicle being rear-ended is pressed in, likely compromising and bending the bumper supports. What happens when the rear-ending vehicle backs away from the bumper and the bumper pops back out? It will look as if there was no accident at all, or possibly just a scratch. However, underneath that scratch is likely thousands of dollars of damage that needs to be addressed, and that will support a mechanism for injury.

Even if you are not pursuing an injury claim, the vehicle that you trust with your safety at highway speeds should be repaired to its pre-loss condition with an emphasis to repairing everything that was damaged, and not protecting the insurance companies’ profits.

If you find yourself in a car accident, don’t hesitate to contact the Law Office of Robert J. Stirling for a free confidential evaluation at (916) 851-5909.