According to LA. R.S. 22:1892(B)(4), if your car was
damaged as result of another driver’s negligence
and there is a delay by the other driver’s insurance
company, the other driver’s insurance company
should pay your rental car costs for a reasonable
length of repair me. If your car is totaled, many
companies will pay for your rental as a courtesy for
a short period of me, but they are not required to
do so.
If you are ling a claim with your own insurance
company, the cost of a rental car will only be
covered if you paid a premium to include rental
reimbursement coverage in your policy. Most
polices have a dollar limit for rental payments, so
check your policy if you have quesons.
Louisiana Department of Insurance
Tim Temple
Commissioner of Insurance
Consumer’s
Guide to
Auto Insurance
Aer an
Accident
What happens if my car
is a total loss?
Will I be able to get a rental car?
Will I be able to get a rental car?
According to LA. R.S. 22:1284, an at-fault accident
led with your insurance company will probably
cause your rates to rise. However, an insurance
company cannot raise your premium for a not-at-
fault accident. If you have quesons about a rate
increase following a claim, contact our Oce of
Consumer Services at (225) 342-1258.
Can I be penalized for ling an
insurance claim?
According to LA. R.S. 32:702(14), if the damage
to your car is extensive, and the claims adjuster
determines the cost to repair your car is equal to or
greater than 75 percent of the value of your car, the
insurance company shall choose to declare your
car a total loss. When this happens, your insurance
company has the opon to take the tle for your
vehicle when it issues payment on your claim.
The insurance company may use a fair market value
survey of qualied retail dealers in your area or a
car value service as a guide to valuing the car. The
insurance company is required to pay what your
vehicle was actually worth at the moment before
the crash. The claims adjuster will check to see
what a car like yours (same make, model and year)
is worth in your general geographic area.
It is also a good idea for you to independently
research the value of your car before agreeing to
a selement with the insurance company. If your
research indicates a higher value, you may want to
try negoang with your insurer.
This public document was produced by the
Louisiana Department of Insurance and is available
online.
Louisiana Department of Insurance
1-800-259-500
www.ldi.la.gov
The best me to nd out what your auto insurance
policy covers is before you need it. Take a look at
what types of coverage you have and if you have
quesons, reach out to your agent.
If you’ve been in an accident and le a claim, an
adjuster will examine the damage to your vehicle
and talk with you about the accident. Your insurance
company will use the adjuster’s ndings as the basis
of their selement.
According to LA. R.S. 22:1892(D)(1), as the owner
of a motor vehicle involved in an accident or
subming an insurance claim, you have the right
to select the repair facility of your choice.
According to LA. R.S. 22:1892(D)(1), you can have it
repaired wherever you choose.
Ask why the adjuster or insurer recommends a
certain shop and if there are any benets to working
with the shop they recommend.
Even if your claims adjuster recommends a specic
body shop, you may choose to have your car
repaired at the body shop of your choice. To avoid
any confusion, be sure to nofy the claims adjuster
which shop you would like to repair your car, before
any of the work is done.
Ask for recommendaons from friends, family,
and other people you trust. Look for a repair shop
before you need one to avoid being rushed into a
last-minute decision.
According to LA. R.S. 51:2424, no insurer shall specify
the use of non-Original Equipment Manufacturer
(OEM) aermarket crash parts in the repair of an
insured’s motor vehicle, nor shall a repair facility or
installer use non-OEM aermarket parts to repair a
vehicle, unless the insured is so advised in wring.
In all instances where non-OEM aermarket crash
parts are intended for use by an insurer:
(1) The wrien esmate shall clearly idenfy each
such part.
(2) A disclosure document containing the following
informaon in ten point type or larger type shall
appear on or be aached to the insured’s copy of
the esmate: “This esmate has been prepared
based on the use of crash parts supplied by a source
other than the manufacturer of your motor vehicle.
Warranes applicable to these replacement parts
are provided by the manufacturer or distributor of
these parts rather than the manufacturer of your
vehicle.”
A car owner may request that his vehicle be repaired
with OEM parts, but the owner may be responsible
for the price dierence in cost of such parts. The
insurer of the at-fault driver is responsible for
returning the vehicle to its pre-loss condion. If
aermarket parts do not void any current warranty
on the vehicle, use of aermarket parts is allowed.
If an owner insists on OEM parts, the owner will
likely have to pay the dierence in cost.
Parts are classied as:
• New — These parts generally are made to
original manufacturer’s specicaons, either
by the vehicle manufacturer or an independent
company. Louisiana requires repair shops to
tell you if non-original equipment will be used
in the repair. Prices and quality of these parts
vary.
• Remanufactured, rebuilt and recondioned
— These terms generally mean the same
thing: parts have been restored to a sound
working condion. Many manufacturers
oer a warranty covering replacement
parts, but not the labor to install them.
• Recycled or Salvage — These are used parts
taken from another similar vehicle without al-
teraon. Recycled or salvage parts may be the
only source for certain items, though their reli-
ability is seldom guaranteed.
Can I choose the repair shop or
does my insurance decide?
The adjuster recommended a
specic body shop. Can I use a
dierent one?
What should I look for when
choosing a repair shop?
What should I know about the
parts to be repaired or replaced?
Always ask for a wrien esmate. It should include
details regarding the work performed, parts
needed, and the labor charge. An esmate should
state that the repair shop will contact you if repair
costs exceed the amount stated on the esmate.
What should I ask the repair
shop?
Also, the local Beer Business Bureau or the state
Aorney General’s oce may know whether there’s
a record of complaints about a parcular repair
shop.
You are. LA R.S. 22:1892 (C) requires that the check
be paid to the claimant or the claimant’s aorney.
This statute also allows the claimant to direct
payment to a parcular person. It is advisable to
arrange payment prior to picking up your vehicle.
You may direct an insurance company to pay the
repair shop directly, but the shop should receive
payment before you pick up your vehicle or
payment must be prearranged to the sasfacon of
the repair facility.
Who is responsible for paying
the repair shop - the insurance
company or me?
