Question about California’s $5,000 property damage limit:
I was in an accident caused by a driver from Enterprise, who has accepted responsibility. Their insurance did an evaluation and sent me a check for damages.
However, when I took my car to a body shop, they found that the repair costs are more than five times what the insurance initially offered.
The other driver’s insurance informed me that they have a $5,000 limit for property damage claims in California, which includes costs for rental, towing, and storage. Any expenses beyond that amount would need to be submitted to my own insurance, even though I wasn’t at fault.
I’ve already been in a rental car for almost two weeks, which I’m sure is consuming a significant portion of that $5,000 limit.
I’m having trouble believing that a major company like Enterprise only has a $5,000 cap on property damage claims.
What options do I have besides going through my own insurance?
I’m sorry to hear about your situation; dealing with accidents and insurance can be very stressful. Here are some options you might consider:
Negotiate with the Insurance Adjuster: Start by discussing the situation with the insurance adjuster from Enterprise’s insurer. Share the detailed estimate from the body shop and explain why the damages are higher than the initial appraisal. Sometimes, providing additional documentation can lead the insurance company to reassess the situation.
File a Demand Letter: You could send a formal demand letter to the insurance company outlining the full extent of your damages, including repair estimates and any additional costs incurred (like rental fees, towing, and storage). Make sure to include any supporting documentation.
Consult an Attorney: If negotiations with the insurance do not lead to a satisfactory resolution, consulting with a personal injury or auto damage attorney can provide guidance. They can help you understand your rights and may be able to negotiate on your behalf.
Consider Small Claims Court: If you still cannot reach a resolution, you may want to consider filing a claim in small claims court. This is typically a faster and less expensive option than going through the full court system.
Review Your Own Insurance Policy: Check your own insurance policy for any coverage that may apply, such as uninsured motorist property damage or collision coverage. Even though it can be frustrating to involve your own insurance while you weren’t at fault, it may cover you for damages exceeding the other party’s limits.
Document Everything: Keep detailed records of all communications, estimates, repairs, and any other costs associated with the accident. This will help your case whether negotiating with the insurance or if you need to take further action.
It can indeed be surprising that a large company like Enterprise could have such low limits, but it’s not uncommon for rental companies to have minimum property damage limits, so their insurance might be structured this way. Good luck, and hopefully, you can resolve this quickly!