Repair/Replace: Adverse Insurance Required to Do One or the Other

The insurance company that damages your vehicle can choose between whether to repair or replace your car. If they would rather "replace" your car, you can still choose to have them send you the check, minus the salvage value of the vehicle, and you can keep your car and their check. However, you would then have a salvage title on the vehicle. If they choose to repair your vehicle, you can choose what facility does the repair. You are not limited to those facilities they suggest.


Loss of Use: provide a rental while the car is being repaired

Arizona law requires the adverse insurance company to provide a replacement - or money for a replacement - due to ongoing loss of use. However, they will often try to save money by giving you a rental vehicle that is not equal to the car being repaired. Do they know the law? Yes, of course they know the law. But they also know that you are not likely to file suit over the difference. Thus, this is an area of regular abuse of the position of power the adverse insurance company has when you need a vehicle to replace the one that is being repaired or evaluated and they know time is on their side.


Dimunition in Value: If repaired, the lost value on future resale due to damage they caused

Arizona law explicitly allows for someone to collect reimbursement for the difference in value to their vehicle based upon the repairs that were required due to the negligence of the other driver. A car that has been repaired after an accident is worth less. Determining the affect of the accident on the value of the car for future re-sale is critical in order to receive compensation for this loss. Some states do not allow someone to get this money reimbursed, but Arizona does allow this loss and thus requires the adverse insurnace company to pay this loss. If they fail to do so, that loss could be added to any future lawsuit, if necessary.