After evaluating the damages to your vehicle, your insurance company has the option of repairing your vehicle, replacing your vehicle, or reimbursing you for the vehicle’s actual cash value (ACV). Actual cash value is the amount your vehicle would have sold for on the date of the accident.

Your insurance will elect to replace your vehicle or reimburse you for the ACV in those instances where the vehicle is economically impractical to repair.

A vehicle is considered economically impractical to repair, or a total loss, if the cost to repair the vehicle equals or exceeds the vehicle’s ACV on the date of the loss. In many instances an insurance company will total a vehicle if the appraised damages equal 80% of the vehicle’s ACV because often, once repairs are begun, additional damages or “hidden damages” are found which would render the vehicle a total loss by definition. (This is sometimes referred to as a “constructive total” loss).

If the accident or claim is not my fault, do I go through my insurance company or the other person’s insurance company?

Report the crash to your insurance company immediately or within the time specified by your policy along with a copy of any police reports or supporting documents. Then report it to the other insurance company.

Typically each company will have its own way of handling a claim. The majority of the time, if it is not your fault, the other insurance company will process the claim. Just keep on top of them to insure your case is being handled promptly and to your satisfaction.

Accidents are almost always unexpected and very stressful. It’s important to keep as calm as possible.

Being prepared in the case of an accident is also important. Keep an emergency kit in your trunk or under a seat with a set of collapsible cones, warning triangles or even emergency flares. Make sure you also have a PEN and a card with relevant medical information for you and your family. Keep a disposable camera handy to take pictures, especially one that has a flash in case the accident is at night. Most disposable cameras are fairly durable and can survive the heat of a car, especially if stored away from direct sunlight. Replace it every two years to be sure the film is fresh.

What to do after an auto accident:

• Stay as calm as possible.

• Call the police immediately. They will write up a police report that will have a report number which you will need.

• Check for injuries. Life and health are more important than damage to vehicles. When in doubt, call an ambulance.

• If the accident is minor and there are no serious injuries, most states will allow you to move your vehicles to a safe place, rather than risk being in moving traffic. Check your states laws.

• Turn on hazard lights. If warranted, and possible, use cones, warning triangles or flares for safety. Turn car engine off so it does not risk sparking a fire.

• Make immediate notes about the accident including the specific damages to all vehicles involved. If the name on the auto registration and/or insurance policy is different from the name of the driver, establish the relationship and write it down. Get witness information, if possible, as well. Swap information with the other party. Names, phone numbers, insurance policy information, tag numbers, VIN number and make of vehicle.

• Don’t sign any documents unless a police officer asks you to sign for a ticket.

• Be polite, but don’t ever tell the other drivers or the police that the accident was your fault, even if you think it was. Likewise, do not accuse the other drivers of being at fault at this time. It is wise to state only the facts. Limit your discussion of the accident to the insurance agent and the police.

• If you have a camera handy, and it is safe to do so, it may be helpful to photograph the accident scene. You want to get pictures of the cars involved, the people, and especially the damage before it is taken away from the scene. Pictures of skid marks or guard rails or other objects that were part of the accident are also useful.

• If possible, do not leave the accident scene before the police officers and other drivers do.

• Finally, remember that while getting the facts is very important, investigating the accident should be left to the police officers and the insurance companies.

• Don’t accept offers to settle for payment on the spot without careful consideration. You may be held liable later for the same damages.