Claim Rights

If your vehicle cannot be safely driven, the insurance company must inspect the vehicle within five business days after you notify the claim. If your vehicle can be safely driven, the company must complete the inspection within 15 days after you notify them of your claim.

If parts are being replaced on your damaged vehicle, your insurance company is required to pay for original equipment (OE) parts, unless you agree to aftermarket parts (parts not made by your vehicles manufacturer). However, your insurance company is only responsible for restoring your vehicle to the way it was before it was damaged. If your vehicle was not new at the time of the loss, the insurer does not have to pay for new OE parts. They must pay for parts of “like, kind and quality” (OE parts of comparable age and condition). If you request new OE parts on an older vehicle, you may have to pay the difference.

Yes. The insurance company is required to return your vehicle to the condition it was in before it was damaged. The company can either pay all costs to satisfactorily repair your vehicle, including all obvious and hidden damage, or they may offer a cash settlement to pay for the satisfactory repair of your vehicle.

If you disagree with the insurance company about whether they have met their requirements under the law, contact the Department of Commerce Response Team. You may have the ability to pursue action in small claims court if you are filing a claim against another party’s company, or you can invoke the appraisal process (which is explain in your policy) if you are filing a claim with your own company.

Both terms refer to reductions in your settlement. “Betterment” means that your repaired vehicle is better than it was before it was damaged. Your insurance company can only charge you for betterment if the repairs increase your vehicles resale value over what it was before the accident.

“Depreciation” refers to a reduction in your settlement based on the age or use of a part that is to be replaced. Certain parts on your vehicle have a “life expectancy” and your insurance company may take this into consideration. For example, if a tire on your vehicle is expected to last 60,000 miles, but it was used for 30,000 miles at the time of the accident, your insurance company may elect to pay only 50% for a new tire. The company can also deduct the different in cost if you insist on using a new part, rather than an available used part, appropriate for the age and condition of the vehicle.

Insurance companies are required to conduct a reasonable investigation and offer a fair settlement once liability has become reasonably clear. If you are making a claim for recovery from the other driver’s insurance company, your settlement may be reduced if the investigation determines that you are even partially responsible for the accident.

If the facts of the case seem clear and you believe the other party’s carrier made an “unreasonable” determination of comparative negligence, you may complain to the Department of Commerce. You may also take the driver of the other car to Conciliation Court if the amount of your claim is below the Court’s dollar ceiling. Note: Minnesota law does not allow insurers to automatically assign a percentage of negligence simply because you were involved in the accident.

Many people misunderstand Minnesota’s no-fault law. No-fault provisions relate only to medical loss, work loss or loss of essential services and are only available from your own insurance company. The no-fault law is not related to physical damage to your vehicle.

If you have no purchased rental car coverage and:

• You were responsible for the accident; you would not be entitled to reimbursement under your policy.
• The other driver is determined to be liable for the accident; you would have the right to seek reimbursement from the other driver’s insurance company.

If you have purchased rental car coverage:

• You can file a claim with your own company for reimbursement or
• If you do not want to file a claim with your own insurance company and the other driver was liable for the accident, you have the right to seek reimbursement from the other driver’s insurance company.

Generally, you are entitled to a vehicle comparable to your own. However, in the case of certain high-value, high-cost vehicles, you may have to demonstrate your need for a specific replacement vehicle.

Maybe. Once the insurance company has paid you the fair market value for your vehicle, the company owns the vehicle. Accordingly, the company can decide whether to sell the car back to your or retain it for its own use. Technically, if the company does sell it back to you, it can determine the price.

First, speak to the adjuster assigned to your claim or the supervisor in charge. If you are still unable to resolve the issue, contact the Minnesota Department of Commerce Consumer Response Team (CRT) at 651-296-2488 (o 1-800-657-3602). The CRT helps consumers with insurance questions and complaints. If there is a dispute with a company or person licensed by the Department of Commerce, the CRT will attempt to resolve the matter informally. If the issue cannot be resolved in this way, you may be asked to send a latter to the department in order to begin a formal investigation.

Appraisal Clause – A clause in all auto insurance policies that provides a special appraisal procedure you can use to settle a disagreement between yourself (the insured) and he insurance company over the amount of loss. This procedure allows both parties to choose an appraiser to re-evaluate the damages. If the two appraisers don’t agree, a third party (called the “umpire”) makes the final determination.

Comparative negligence – The amount or percentage or negligence (responsibility or fault) assigned to one or more of the parties in an accident.

Consumer Response Team (CRT) – Staff a the Department of Commerce, which responds to consumers’ questions and complaints about insurance matters. CRT staff can help you resolve disputes between consumers and insurance companies when necessary.

Deductible – A set amount the policyholder agrees to pay, per claim or per accident, toward the total amount of an insured loss. You must pay the deductible amount before the insurance company pays any benefits.

Department of Commerce – The state department that licenses and regulates insurance companies, agents and adjusters.

No-fault laws – No-fault coverage only applies to medical costs, wag e loss, or other costs related to injures sustained in an accident.

Preferred provider – A service provider, such as an automotive repair shop, that has agreed to provide repairs and administer claims under terms established by an insurance company.

Subrogation – The process by which one insurance company seeks reimbursement from another company or individual for a claim it has already paid.

Surcharge – An additional charge added to your premium for accumulated traffic violations or accidents. The charge varies from company to company and is typically assessed for a defined period, such as 36 months from the date of the violation or accident.