Expert: Charlie Barone - 11/13/2009

Question
Hi,
I got into a car accident a week ago. The police report provides clear evidence that the other driver was at fault. Up until this point I've been doing everything through my insurance company.
But I was talking with a friend who said she just contacted the other person's ins. company when she got into an accident.
So, what are the Pro's and Con's of each approach

Thank You

Answer
Outside of the deductible, which you will have to pay under your coverage, the amount paid for the repair or your car will essentially be the same. The deductible will be refunded once your company subrogates with the at fault party's liability carrier. One thing that will be different about the two claims is that you had no contract with the other party's company and are not subject to restrictions on the time you need a rental car and more importantly, diminished value claims. You will be entitled to a diminished value claim once the repairs are completed to the best outcome possible. Your car will be inherently worth less than it was prior to the collision by virtue of the disclosure of the damage.