Detailed Answer
Under New Jersey law, property damage claims are separate from bodily injury claims under the no-fault system. Your Personal Injury Protection (PIP) covers medical expenses, not vehicle repair. You can pursue compensation for vehicle damage through your insurer or the at-fault driver’s insurer under liability insurance requirements (see N.J.S.A. 39:6B-2).
Step 1: Gather Evidence of Vehicle Damage
Document all damage with clear photos or videos. Obtain a police report if available. Record the date, time and location of the incident.
Step 2: Notify Your Insurance Company
Review your auto policy for notification deadlines. Report the damage to your insurer if you have collision or comprehensive coverage. Ask about your deductible and any rental car benefits.
Step 3: File a First-Party Insurance Claim
Submit your claim with damage estimates and evidence. An adjuster may inspect your vehicle. Pay your deductible and let your insurer handle repair payments.
Step 4: File a Third-Party Property Damage Claim
If you have no collision coverage or wish to recover your deductible, submit a claim against the at-fault driver’s liability insurer. Use the police report or DMV records to identify the insurer. Send a written demand letter that outlines your losses and includes estimates and photos.
Step 5: Collect Repair Estimates and Invoices
Obtain at least two written repair estimates from reputable shops. Keep all invoices and receipts for parts, labor, towing and storage.
Step 6: Negotiate and Reach a Settlement
Review the insurer’s offer against your documentation. Counteroffer if necessary. Keep all correspondence in writing.
Step 7: Consider Small Claims Court
If the insurer denies your claim or offers insufficient compensation, you can file in Small Claims Court for amounts up to $5,000. See New Jersey Court Rule R. 4:21-1 and N.J.S.A. 2A:23-7.1. For larger claims, consider Superior Court or consulting an attorney.
Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Helpful Hints
- Keep detailed records of all damage, estimates and communications.
- Review your policy’s deadlines and coverage limits.
- Obtain multiple, written repair estimates.
- Send all correspondence in writing and track delivery.
- Understand the difference between PIP (N.J.S.A. 39:6A-4) and property damage coverage.
- Check for rental car or towing coverage in your policy.
- Act promptly to meet insurer and court deadlines.