Should I Settle My Property Damage Claim Before Settling My Injury Claim?

After a car accident, many people wonder whether they can settle the property damage portion of their claim before resolving their personal injury claim. In most cases, the answer is yes. Property damage and bodily injury are separate components of an accident claim, and it is common for the vehicle damage to be resolved while the injured person's medical treatment and personal injury claim are still ongoing.

In my experience, attorneys are often much less involved in the property damage portion of a personal injury case than clients expect. Many clients handle the property damage claim directly with the insurance company, with occasional guidance from their attorney. Whether you work with your own insurance company or the other driver's insurer, however, you should understand exactly what you are agreeing to before signing any settlement or release.

Key Takeaways

• You can generally resolve your property damage claim before your personal injury claim.
• Property damage and bodily injury are separate components of an automobile accident claim.
• Resolving your vehicle damage does not necessarily mean you have resolved your personal injury claim.
• Read any release carefully before signing it. Make sure it applies only to property damage if that is what you intend to settle.
• Be particularly careful with a general release, which may contain language affecting other claims arising from the accident.
• Your own insurance company may provide certain contractual protections that you do not have when dealing directly with the other driver's insurer.
• Using your own collision coverage may require you to pay a deductible initially, although your insurer may later seek reimbursement from the at-fault party.
• If you use the other driver's insurance company, you may avoid paying your own collision deductible, but you are dealing with an insurer that does not have the same contractual obligations to you.
• Keep copies of property damage estimates, photographs, total-loss documents, rental-car records, and settlement paperwork.
• If you have an attorney, have the attorney review any release before signing it, particularly if the document contains broad language releasing claims.

Can I Settle My Property Damage Claim Before My Injury Claim?

Yes. In fact, it is common for property damage claims to be resolved before personal injury claims. Vehicle repairs or total-loss issues can often be addressed relatively quickly, while a personal injury claim may remain open for months because the injured person may still be receiving treatment or may not yet know the full extent of the injury.

The two claims are related because they arise from the same accident, but they involve different types of damages. Property damage generally concerns the vehicle and related losses, while a personal injury claim concerns bodily injuries and damages associated with those injuries.

The important thing is to make sure that resolving the property damage portion does not inadvertently release your separate bodily injury claim. The language of the settlement documents matters.

Should I Use My Own Insurance Company to Fix My Car?

There can be advantages to using your own collision coverage to repair your vehicle, even when another driver caused the accident. The reason is contractual: when you have collision coverage, your relationship with your own insurer is governed by the terms of your insurance policy. Your insurer therefore has contractual obligations to you concerning covered losses.

For example, if your vehicle needs repairs, you may have a process under your policy for obtaining an estimate, selecting or working with a repair facility, and addressing disagreements about the scope or quality of repairs. You may also have to pay your deductible initially, depending on the circumstances and the handling of the claim.

Your insurance company may then pursue the at-fault driver's insurer for reimbursement through the subrogation process. If successful, your deductible may ultimately be recovered, although the timing and outcome depend on the circumstances of the claim and applicable insurance procedures.

What Are the Advantages of Using the Other Driver's Insurance Company?

If the other driver is clearly at fault and their insurance company accepts liability, you may be able to have your vehicle repaired through that carrier without paying your own collision deductible. The other driver's insurer may arrange an inspection, authorize repairs, or issue payment based on its evaluation of the damage.

There is, however, an important distinction. You generally do not have an insurance contract with the other driver's insurance company. The relationship is therefore different from the contractual relationship you have with your own insurer.

This does not mean that the other driver's insurance company cannot properly handle your property damage claim. It simply means that you should understand the difference between making a first-party claim under your own policy and making a third-party claim against the person who caused the accident.

Does Settling My Property Damage Claim Settle My Personal Injury Claim?

Not necessarily. Property damage and personal injury are different types of claims, and a property damage settlement can often be completed while the bodily injury claim remains open.

However, never assume that a document is limited to property damage simply because the adjuster tells you that it is. Read the actual language of anything you are asked to sign.

A release may contain broad language releasing claims arising from the accident, potentially including bodily injury claims. If you are pursuing a personal injury claim, you should understand exactly what rights you are giving up before signing anything.

What Is a General Release?

A general release is a legal document in which a person agrees to release another party from specified claims or liabilities. The scope of the release depends on its actual language, and some releases can be considerably broader than the particular payment being made.

This is particularly important when you are settling property damage shortly after an accident but are still treating for injuries. You don't want to unintentionally sign a document that releases claims you intended to preserve.

If an insurance company gives you a release to sign as part of a property damage settlement, read the entire document rather than simply signing where the adjuster indicates. If you have any question about whether the release affects your personal injury claim, have an attorney review it before signing.

What Should My Property Damage Settlement Say?

If you are settling only the property damage portion of your claim, the documentation should clearly identify what is being resolved. The precise language will depend on the circumstances and the document being used, so don't rely solely on a verbal representation that "this is just for the car."

You should also keep copies of the property damage estimate, photographs, repair invoices, total-loss valuation, rental-car records, and any settlement correspondence. These documents can be useful later if questions arise concerning the accident, the extent of the vehicle damage, or the amount that was paid.

If you have a pending bodily injury claim, make sure you understand whether the settlement paperwork contains any language concerning bodily injury, personal injury, medical expenses, or other claims arising from the accident.

What If My Car Is Totaled?

The same general principle applies if your vehicle is declared a total loss. You can generally resolve the vehicle's value and other property damage issues without necessarily resolving your bodily injury claim.

A total-loss settlement may involve questions concerning the vehicle's actual cash value, comparable vehicles, taxes and fees, salvage value, rental expenses, and other property-related issues. Make sure you understand how the insurer calculated the amount being offered and keep the supporting documentation.

Again, be careful with the settlement paperwork. A check for your totaled vehicle is one thing; a broad release of all claims arising from the accident is another.

What If I Still Need Medical Treatment?

This is one of the most important reasons why property damage and personal injury claims are frequently resolved separately. Your vehicle may be repaired or replaced relatively quickly, while your medical treatment may continue for weeks or months.

You may not yet know whether you have fully recovered, whether additional treatment will be necessary, or whether you have suffered a permanent injury. Settling the property damage portion of the claim does not necessarily require you to prematurely settle your bodily injury claim.

However, before accepting any payment or signing any document, make sure you understand what the payment is intended to resolve and what claims the accompanying paperwork releases.

What About Rental Car Expenses?

Rental-car expenses are generally associated with the property damage portion of the claim and may be addressed while your personal injury claim remains pending. Depending on the circumstances, the insurer may arrange a rental vehicle directly or reimburse you for reasonable rental expenses associated with the repair or total loss.

Keep your rental agreement and receipts, and understand what period of rental the insurer has agreed to cover. Disputes can arise over how long a rental vehicle is reasonably necessary, particularly when repairs are delayed or a vehicle is being replaced after a total loss.

If you are handling the property damage claim yourself, keep your communications with the adjuster in writing whenever possible. A clear paper trail can be valuable if there is later a disagreement about what the insurer agreed to pay.

Should My Personal Injury Lawyer Handle My Property Damage Claim?

It depends on the circumstances. In many personal injury cases, the attorney's primary focus is the bodily injury claim, while the client handles the vehicle damage directly with the insurance company.

That doesn't mean your attorney cannot provide guidance concerning the property damage claim. Your lawyer may be able to help you understand a release, identify potential problems with settlement documents, or explain how the property damage portion interacts with the overall accident claim.

The important thing is to communicate with your attorney before signing anything that could potentially affect your personal injury rights.

The Bottom Line

There is nothing unusual about settling your property damage claim before your personal injury claim. In many cases, that is exactly what happens because vehicle damage can be evaluated and resolved much sooner than bodily injuries.

The biggest warning is simple: don't confuse a property damage payment with a property-damage-only release. Before signing anything, make sure you understand whether you are releasing only your vehicle damage claim or whether the document contains broader language that could affect your personal injury claim.

If you are unsure, have an experienced personal injury attorney review the document before you sign it. A few minutes spent reviewing a release can be far more valuable than discovering later that you unintentionally gave up an important claim.

Frequently Asked Questions

1. Can I settle my property damage claim before my personal injury claim?

Yes. Property damage and bodily injury claims can generally be resolved separately, and it is common for the vehicle damage claim to be settled first.

2. Will settling my car damage claim prevent me from pursuing a personal injury claim?

Not necessarily. The critical issue is the language of the settlement documents you sign. Make sure any release is limited to the claims you actually intend to settle.

3. Should I use my own insurance to repair my car?

It may make sense to use your own collision coverage, particularly if you want to get the repair process moving quickly. You may have to pay a deductible initially, but your insurer may pursue reimbursement from the at-fault driver's insurer.

4. What is the advantage of using my own insurance company?

Your own insurance company has contractual obligations to you under your policy. That can provide protections that are different from those available when dealing directly with the other driver's insurance company.

5. Do I have to pay a deductible if I use my own insurance?

If you make a collision claim, a deductible may apply depending on your policy and the circumstances. If your insurer successfully recovers from the at-fault party, your deductible may potentially be recovered as part of that process.

6. What is a general release?

A general release is a document that releases specified claims or liabilities. Because the scope depends on its language, you should carefully review any release before signing it.

7. Can an insurance adjuster make me sign a general release to get my property damage payment?

You should not sign a document you do not understand. If you are still pursuing a personal injury claim, have the release reviewed before signing it so you understand exactly which claims you are releasing.

8. What if my car is totaled?

You can generally resolve the total-loss portion of your property damage claim while your bodily injury claim remains pending. Carefully review the valuation and, most importantly, any release associated with the payment.

9. Can I settle my rental-car expenses separately?

Rental-car expenses are generally part of the property damage claim and can often be addressed while the personal injury claim remains open. Keep your rental agreement, receipts, and communications with the insurer.

10. Should my personal injury lawyer handle my property damage claim?

Not necessarily. Many attorneys primarily handle the bodily injury portion while the client works directly with the property damage adjuster. Your attorney can nevertheless provide guidance, particularly concerning settlement documents and releases.

11. What should I do before accepting a property damage settlement?

Review the settlement paperwork carefully and determine exactly what claims the payment resolves. If you have a pending personal injury claim, pay particular attention to any language releasing bodily injury or other claims arising from the accident.

12. Can I repair my car through the other driver's insurance company?

Generally, you may be able to do so if the other driver's insurer accepts responsibility for the property damage. The process differs from using your own collision coverage, and you should understand the respective advantages and disadvantages before deciding how to proceed.