What To Do After a Car Accident: A Step-by-Step Guide

Introduction

Being involved in a car accident is a stressful experience. Whether it’s a minor fender-bender or a more serious collision on California roads, knowing exactly what to do after a car accident can significantly reduce stress and prevent costly mistakes. This comprehensive guide, brought to you by cars.edu.vn, your trusted automotive expert, outlines the essential steps to take immediately following a car accident and explains what you can expect when filing a claim with your insurance company.

For your convenience, we’ve also included a downloadable car accident checklist that you can keep in your vehicle for quick reference.

Before an accident occurs, preparation is key. When purchasing car insurance, take the time to carefully review the application before signing. Ensure that the coverages, policy limits, and deductibles align with your needs and risk tolerance. Once you receive your policy documents, meticulously review the declaration page. This crucial document contains vital information such as the names of covered drivers, the insured vehicles, coverage limits, and deductibles. Verify the accuracy of all details and confirm that the coverage matches what you intended to purchase. If any changes are necessary, promptly submit your request to your agent or insurance company in writing and always retain a copy for your records. For important communications, consider using certified mail with return receipt requested to confirm delivery and receipt of your documents.

Familiarizing yourself with your automobile insurance policy before an accident happens is invaluable. Thoroughly read your policy to fully understand what is covered, what is excluded, and your responsibilities in the event of a claim. Being informed is the best way to navigate the aftermath of a car accident smoothly.

Alt text: Police officer at a car accident scene, assisting drivers with information exchange and traffic control.

Immediate Actions at the Accident Scene: What To Do

Step 1: Stop and Check for Injuries

Immediately stop your vehicle as close to the scene as safely possible without obstructing traffic further. Check yourself and your passengers for any injuries. Safety is the absolute priority.

Step 2: Ensure Safety and Prevent Further Accidents

If possible and safe, move your vehicle to a safer location, such as the shoulder of the road or a nearby parking lot. Turn on your hazard lights to alert other drivers to the situation. If there are serious injuries or significant vehicle damage and the cars cannot be moved safely, remain in your vehicle with seatbelts on if it is safer than exiting onto a busy road. Consider using cones, flares, or reflective triangles to further warn oncoming traffic, if you have them and it is safe to deploy them.

Step 3: Call Emergency Services and Police

Call 911 immediately if anyone is injured, no matter how minor the injuries may seem initially. Dispatch emergency medical services (EMS) to the scene.

Next, contact the police, even for seemingly minor accidents. In many jurisdictions, police are required to respond to accident scenes, especially those involving injuries or significant property damage. The police report is a crucial document for insurance claims. Be aware that policies often require police notification within a specific timeframe, particularly in hit-and-run accidents. If the accident occurs on private property, police response may vary, but it’s still advisable to attempt to notify them.

Alt text: Paramedics and firefighters responding to a car accident, providing medical assistance and scene safety.

Step 4: Exchange Information with the Other Driver(s)

Exchange information with all other drivers involved. Collect the following details from each driver:

Full Name, Address, and Phone Number: Obtain contact information for all parties involved.
Driver’s License Number and Issuing State: Record driver’s license details for verification.
Vehicle Registration Information: Note down license plate numbers and Vehicle Identification Numbers (VINs). Cross-reference this with the vehicle registration to ensure accuracy.
Insurance Company Name and Policy Number: Get the insurance details from each driver.

Politely request to see their driver’s license and vehicle registration to verify the information they provide is accurate. Do not get into arguments or admit fault at the scene. Simply exchange necessary details.

Step 5: Gather Information from Witnesses and Passengers

Collect names, addresses, and phone numbers of any passengers in all vehicles involved and any independent witnesses to the accident. Witness statements can be invaluable in clarifying the events leading up to the accident and can support your insurance claim.

Step 6: Document the Scene

If you have a camera or smartphone, take photographs and videos of the accident scene. Capture the following:

Vehicle Damage: Photograph all damage to all vehicles from multiple angles.
Accident Scene: Document the overall scene, including road conditions, weather conditions, traffic signals, signs, and any visual obstructions that may have contributed to the accident.
License Plates and VINs: Take clear pictures of license plates and VINs to supplement written records.
Injuries (if visible and appropriate): If there are visible injuries, and it’s appropriate and doesn’t impede medical assistance, photograph them for documentation.

This visual evidence can be extremely helpful for your insurance claim and any potential legal proceedings.

Step 7: Leave a Note if Necessary

If you have damaged an unattended vehicle or other property and cannot locate the owner, leave a clearly visible note with your name, address, phone number, and insurance information.

Step 8: Notify Your Insurance Company Immediately

Contact your insurance agent and/or insurance company as soon as possible after the accident. Prompt notification is usually required by your policy and initiates the claims process. Provide them with all the information you have collected at the scene.

Step 9: Report to the DMV if Required

In California, if anyone is injured in the accident (even seemingly minor injuries) or if vehicle damage exceeds $750, you are legally required to report the accident to the Department of Motor Vehicles (DMV) within 10 days. Failure to notify the DMV can result in the suspension of your driver’s license. You can typically obtain the necessary forms and instructions from the DMV website or your insurance agent.

Alt text: Sign for the Department of Motor Vehicles (DMV), highlighting the regulatory body for vehicle and driver administration.

Frequently Asked Questions After a Car Accident

Q: What happens after I file an insurance claim?

A: Once you report your claim, your insurance company will initiate an investigation. They will contact you to gather detailed information about the accident, which may include a recorded statement or a written statement. In some cases, they may request an Examination Under Oath (EUO), which is a formal interview under oath. The insurance company will also contact other drivers and witnesses involved in the accident as part of their investigation. If you are filing a claim for medical payments coverage or uninsured motorist coverage, you will need to provide documentation of your losses, such as medical bills, records of lost wages, and other related expenses.

Q: What should I do if my insurance company doesn’t contact me promptly?

A: Typically, an insurance claim representative should contact you within a reasonable timeframe after you report the accident. California regulations generally require insurers to acknowledge a claim and begin an investigation within 15 days of receiving notice of the claim. If you haven’t heard from a representative within this period, or if you experience significant delays, proactively contact your agent or insurance company directly for an update. Keep a record of your communication attempts. If you still face unresponsiveness or believe there is an unreasonable delay in handling your claim, you have the right to contact the California Department of Insurance (CDI) for assistance.

Q: How will the insurance company assess the vehicle damage?

A: The insurance company will typically send a qualified insurance adjuster or appraiser to inspect the damage to your vehicle. Based on this initial inspection, the adjuster will prepare a preliminary repair estimate. If, during the repair process, the auto body shop discovers additional damage that was not apparent during the initial inspection, the shop will contact the insurer for approval to cover the cost of these supplemental repairs. The insurer may then send an adjuster to re-inspect the vehicle to verify the additional damage. For minor damage claims, the insurance company might request you to obtain multiple competitive repair estimates from licensed auto body shops instead of sending an adjuster. Remember, it is ultimately your responsibility to authorize the repair shop to begin work on your vehicle once you are satisfied with the repair estimate and the chosen facility.

Q: What amount will the insurance company pay for a physical damage claim under a standard auto policy?

A: Under most standard auto insurance policies, the insurance company will pay the lesser of:

The cost to repair the vehicle to its pre-accident condition
The actual cash value (ACV) of the vehicle

Carefully review your specific policy to understand your coverage details, including any exclusions or limitations. For instance, standard policies often provide limited or no coverage for aftermarket stereo equipment, car phones, or custom wheels and tires unless they were original equipment manufacturer (OEM) installations. You can usually purchase additional coverage for such aftermarket equipment for an extra premium.

Q: What does “Actual Cash Value” (ACV) mean?

A: Actual Cash Value (ACV), unless specifically defined differently in your insurance policy, generally means fair market value in California. Fair market value is defined as the price a willing buyer would pay and a willing seller would accept for an item, assuming both parties are reasonably knowledgeable about the item, acting in their own self-interest, and are under no undue pressure to transact. Essentially, it represents the vehicle’s worth just before it was damaged, taking into account depreciation, mileage, and condition.

Q: What is an appraisal provision in my policy?

A: Most standard auto insurance policies include an appraisal provision. This clause can be beneficial if you disagree with the insurance company’s valuation of your vehicle, particularly in a total loss situation. If a dispute arises regarding the settlement amount for your totaled vehicle, either you or the insurance company can invoke the appraisal provision. Each party hires their own independent appraiser, and then the two appraisers jointly select a neutral umpire. If the appraisers cannot reach an agreement on the vehicle’s value, they submit their differing valuations to the umpire. Any amount agreed upon by two of the three (either both appraisers or one appraiser and the umpire) becomes binding. You and the insurance company each bear the cost of your own appraiser, while the umpire’s fee is typically split equally between both parties.

Q: How is the claim payment check issued?

A: The insurance claim payment check or draft may be issued jointly to you (the insured) and any lienholder, such as a bank or finance company, if you have a car loan. If your vehicle is repairable, the insurance company may also include the repair facility as a payee on the check to ensure direct payment for repairs.

Q: Who is responsible for the remaining balance of my car loan if my car is totaled?

A: You, the borrower, are responsible for the full car loan balance, even if your vehicle is stolen or totaled in an accident. If the insurance claim payment is less than the outstanding loan balance (which can happen if the ACV is lower than what you still owe), you are still obligated to pay the lender the difference. To protect against this financial gap, you can purchase “gap insurance” (Guaranteed Asset Protection insurance). Gap insurance covers the difference between the vehicle’s ACV and the remaining loan balance, helping you avoid being “upside down” on your loan after a total loss.

Q: Will my insurance pay for a rental car while my vehicle is being repaired?

A: Yes, but only if you have purchased rental car reimbursement coverage as part of your auto insurance policy. Review your policy details to understand the specifics of your rental coverage before you need to rent a vehicle. While policy limits vary, rental reimbursement coverage typically pays up to a specified daily amount for a certain number of days. This coverage usually ends when your vehicle repairs are completed, when the insurance company pays for a total loss, or after the maximum coverage period is reached, whichever comes first.

If your vehicle is stolen, some policies may automatically include transportation expense coverage. Again, carefully review your policy to confirm. This type of coverage often begins 48 hours after the theft and ends when your vehicle is recovered, the loss is paid, or after a specified period, whichever occurs first.

Q: What is a Collision Damage Waiver (CDW) from a rental car company, and will my insurance cover it?

A: When you rent a car, the rental agreement typically makes you responsible for any damage to the rental vehicle, including collision damage. Rental car companies also carry their own insurance for damage to their vehicles. For an additional daily fee, the rental company offers a Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW). This waiver, if purchased, relieves you of all or part of your financial responsibility for damage to the rental car caused by collision or theft, depending on the specific terms of the waiver. The cost of the CDW and the extent of the waiver can vary between rental companies.

Whether your personal auto insurance policy covers damage to a rental car and whether it will reimburse you for the cost of a CDW depends on the specific language of your policy. Some policies extend your existing collision and comprehensive coverage to rental vehicles, while others may have exclusions or limitations. Always carefully read your auto insurance policy and consult with your agent or insurance company before renting a vehicle to understand your coverage and whether you need to purchase the rental company’s CDW.

Alt text: Car rental agreement and keys, representing the documentation and access involved in renting a vehicle.

Q: What is salvage value?

A: Salvage value refers to the remaining value of your damaged vehicle if it is declared a total loss by the insurance company. After paying you the actual cash value of your totaled vehicle, the insurance company typically takes possession of the salvage (the damaged vehicle). The salvage value is the estimated amount the insurance company can recover by selling the damaged vehicle to a salvage yard or auto recycler. In some cases, you may have the option to retain the salvage yourself; however, the salvage value will be deducted from your total loss settlement if you choose this option.

Q: What is subrogation?

A: Subrogation is the legal right of your insurance company to recover the amount of money they paid out on your claim from a responsible third party. For example, if another driver was at fault in an accident that damaged your car, and your insurance company paid for your collision damage repairs, your insurance company may pursue subrogation against the at-fault driver or their insurance company to recover the money they paid on your claim. Your insurance policy typically requires your cooperation with the company’s subrogation efforts. You are also generally prohibited from taking any actions that could jeopardize the insurance company’s right to subrogation recovery. For example, you shouldn’t sign any releases with the at-fault party that waive your insurance company’s right to recover their payments.

Q: Is my insurance company required to help me recover my deductible?

A: The answer is both yes and no, with some nuances. Your insurance company is required to inform you whether they intend to pursue subrogation against the at-fault party. If the company decides to pursue subrogation, they are generally obligated to include your deductible in their recovery efforts. However, if the insurance company chooses not to pursue subrogation (which can happen in certain situations), they must notify you of this decision, giving you the option to pursue recovery of your deductible on your own directly from the at-fault party.

If the insurance company is successful in recovering funds through subrogation, either fully or partially, most companies will reimburse you for your deductible, proportionally to the recovery amount. For example, if they recover 100% of the total claim payout, you will receive 100% of your deductible back. If they recover 65%, you’ll get 65% of your deductible reimbursed. Any expenses or legal fees incurred by the insurance company during the subrogation process are typically apportioned between the company and you, based on the recovery ratio.

You also have the option to pursue recovery of your deductible directly from the at-fault party yourself, even if your insurance company is also pursuing subrogation for their payments. However, it’s crucial to discuss this with your insurance company first to avoid inadvertently jeopardizing their subrogation efforts or your own recovery prospects.

Q: Is my car insurance coverage valid outside of California?

A: Most auto insurance policies issued in California provide coverage in other U.S. states, U.S. territories and possessions, and Canada. Like California, most states and territories have financial responsibility laws mandating minimum levels of auto insurance coverage to protect against losses from vehicle ownership or operation. If the minimum financial responsibility requirements in a state or territory you are visiting are higher than your policy limits, your California insurance company will typically automatically meet the higher minimum requirements while you are in that location.

However, most U.S. auto insurance policies do not extend coverage into Mexico. If you plan to drive your car into Mexico, it is essential to purchase separate Mexican auto insurance coverage specifically for driving in Mexico. Always check your policy details regarding out-of-state coverage before you travel, and if you plan to drive in Mexico, obtain appropriate Mexican insurance in advance.

California’s Financial Responsibility Law, outlined in the California Vehicle Code starting at Section 16020, requires all drivers to demonstrate the ability to pay for damages resulting from vehicle ownership or operation. The minimum required financial responsibility limits in California are currently $15,000 for injury or death to one person in an accident, $30,000 for injury or death to two or more persons in one accident, and $5,000 for property damage in any single accident. When stopped by law enforcement for a moving violation or involved in an accident, you may be asked to provide proof of financial responsibility. You can do this by carrying your insurance information in your vehicle, and in California, you can also record your insurance company name and policy number on your vehicle registration card issued by the DMV.

Q: What should I do if I am served with a lawsuit (Summons and Complaint) after an accident?

A: If you are served with a lawsuit (Summons and Complaint) as a result of a car accident, it is critically important to notify your insurance agent and insurance company immediately. Do not delay. Keep a copy of the lawsuit documents for your records, and promptly mail or deliver the original lawsuit documents to your insurance company. Do not ignore the lawsuit. Failure to respond to a lawsuit can have serious legal consequences.

Do not give any statements or discuss the accident with anyone other than a verified representative of your insurance company. If the lawsuit arises from a covered accident under your policy, your insurance company is contractually obligated to provide you with a legal defense. They will assign an attorney to represent you in the lawsuit and handle the legal proceedings.

Q: Is a newly acquired vehicle automatically covered under my existing policy?

A: Most auto insurance policies offer automatic coverage for newly acquired vehicles under certain conditions, but it’s crucial to understand the specifics of your policy.

Replacement Vehicle: Policies typically provide automatic coverage when you replace a vehicle already listed on your policy. The coverage for the new vehicle is usually the same as the coverage you had on the replaced vehicle. However, it is essential to notify your agent or broker as soon as possible about the vehicle replacement to ensure continuous and proper coverage.
Additional Vehicle: Many policies also extend automatic coverage to a newly acquired vehicle that is in addition to the vehicles already insured under your policy. However, there are usually specific conditions and time limits for this automatic coverage to apply.

Most automatic coverage provisions require you to notify your insurance company within a specified timeframe after acquiring the new vehicle if you want it to be formally added to your policy. This notification period is often 30 days, but some policies may have shorter notification periods, such as 14 days or even less. If you fail to notify your insurer within the specified timeframe, the newly acquired vehicle may not be covered.

Unless your insurance policy outlines a specific notification procedure, verbal notification to your insurance agent is generally considered sufficient to trigger automatic coverage for a newly acquired vehicle during the notification period. However, it’s always best practice to follow up with written confirmation to ensure clear documentation and avoid any potential misunderstandings.

Alt text: Keys and documents for a new car purchase, representing the acquisition of a new vehicle and associated paperwork.

Things to Absolutely Avoid After a Car Accident

Don’t Argue or Get Into Conflicts at the Scene: Avoid arguing with other drivers, passengers, or witnesses. Keep interactions polite and focused on exchanging information.
Don’t Admit Fault: Refrain from admitting fault for the accident at the scene, even if you think you might be partially responsible. Fault determination is a complex process best left to the police and insurance investigators.
Don’t Discuss Details of the Accident Excessively: Save the detailed account of the accident for the police and your insurance company. Limit discussions at the scene to exchanging necessary information.
Don’t Sign Any Documents or Agreements at the Scene: Do not sign any statements regarding fault or promises to pay for damages from other parties at the accident scene. Be especially wary of anyone asking you to sign something immediately.
Don’t Refuse to Provide Necessary Information: While you shouldn’t over-share, do not refuse to provide essential information like your driver’s license, registration, and insurance details to the other driver and the police.

Important Tips to Remember

Read Your Insurance Policy Carefully: Don’t wait until after an accident to understand your coverage. Thoroughly read and understand your auto insurance policy when you first purchase it and periodically review it.
Seek Clarification if Needed: If you don’t understand any aspect of your insurance policy, don’t hesitate to ask your insurance agent or company for clarification. Understanding your coverage is crucial.
Call the Police and Paramedics When Necessary: In case of any accident, call the police to the scene. If there are injuries, even seemingly minor ones, call paramedics or emergency medical services immediately.
Gather Comprehensive Information at the Accident Scene: Collect as much information as possible at the accident scene, as detailed in the steps above. This information will be essential when you notify your agent and file your insurance claim.
Notify Your Insurer Immediately After an Accident: Promptly notify your insurance agent and/or insurance company as soon as possible after an accident. Delaying notification can complicate the claims process.
Cooperate Fully with Insurance Adjusters and Investigators: Cooperate fully with the insurance adjusters and investigators assigned to your claim. Provide them with all requested information and documentation to facilitate a smooth claim process.
Ask Questions if You Don’t Understand the Claims Procedure: If you don’t understand any part of the claims procedure, such as settlement offers or repair processes, ask your agent or insurance company representative for clear explanations.
Notify Your Insurer of Vehicle Ownership Changes in Writing: If you sell, trade-in, or otherwise change ownership of a vehicle insured under your policy, notify your agent or company in writing to update your policy accurately.

Your Rights Under California’s Fair Claims Settlement Practices Regulations

California has Fair Claims Settlement Practices Regulations in place to protect insurance consumers and ensure fair and ethical claim handling by insurance companies. In general, these regulations require insurance companies to adhere to the following principles:

Duty to Inform: Insurance companies must advise you of all benefits, coverages, time limits, and other relevant provisions of your insurance policy.
Prompt Claim Acknowledgement and Investigation: Insurers must acknowledge your claim, begin their investigation, provide necessary claim forms and instructions, and offer reasonable assistance immediately, but no later than 15 days after receiving notice of your claim. “Notice of claim” is broadly defined as any written or oral communication that reasonably informs the insurer of your intent to make a claim.
Timely Communication Response: Insurers are required to respond to communications from you promptly, but no later than 15 days after receiving your communication.
Decision on Claim Acceptance or Denial: The insurance company must accept or deny your claim promptly, but no later than 40 days after receiving “proof of claim.” Proof of claim refers to documentation you provide that reasonably evidences the claim and supports the amount of loss, such as repair estimates or a police report confirming vehicle theft.
Reasonable Towing Expenses: Unless the insurer provided you with the name of a specific towing company before you used a towing service, they must pay reasonable towing expenses.
Fair Settlement Offers: Insurers are obligated to offer fair and reasonable settlements. For a total loss claim, the settlement must include applicable taxes, license fees, and transfer fees. The settlement amount should reflect the value of a comparable vehicle of like kind and quality in the local market. If you choose to retain the salvage of your vehicle, any deductions from the settlement for salvage value must be fair, measurable, and clearly explained.
Prompt Claim Payment: Once a claim is accepted and a settlement is reached, the insurer must pay the claim promptly, but no later than 30 days from the date of settlement agreement.
Subrogation Information and Deductible Recovery: Insurers must inform you whether they intend to pursue subrogation to recover claim payments from a responsible third party. If they pursue subrogation, they must include your deductible in their recovery efforts unless you have already independently recovered it.

These points provide a simplified overview of some key aspects of California’s Fair Claims Settlement Practices Regulations. For complete details, refer to the full text of the regulations.

Understanding Automobile Insurance Fraud

Automobile insurance fraud is a serious issue in California and can take various forms. Common fraud schemes often involve automobile property damage and staged automobile accidents.

Automobile Property Fraud: This type of fraud frequently involves unethical auto body repair shops and, in some cases, policyholders who engage in fraudulent practices, including:

Inflated Damage Claims: Dishonestly reporting vehicle parts as damaged or lost when they were not damaged in the current accident.
Excessive Repair Costs: Submitting final repair bills that significantly exceed the initial repair estimate without legitimate justification.
Billing for Unauthorized Repairs: Charging for repair work that was never authorized by the customer or the insurance company.
Fake OEM Parts Billing: Billing for new, genuine Original Equipment Manufacturer (OEM) parts while actually using cheaper aftermarket parts or used parts from salvage yards.
“Pounding Out” Dents Instead of Replacement: Charging for new auto parts but only hammering out dents or using body filler (“bondo”) instead of replacing damaged panels.
False Theft or Vandalism Reports: Falsely reporting vehicles as stolen or vandalized to fraudulently collect insurance payouts.

As a consumer, it’s crucial to carefully review all paperwork from auto body and repair shops to protect yourself from potential fraud. Be cautious of any repair facility that aggressively refers you to specific medical or legal offices, as this practice could indicate “capping,” which is illegal client referral for a fee in California (a felony).

Automobile Accident Fraud: This often involves organized auto accident rings that stage accidents for insurance fraud. Common staged accident schemes include:

Sudden Stops: Intentionally stopping abruptly for no apparent reason to cause a rear-end collision.
Right-of-Way Violations: Deliberately disregarding the right-of-way to create an accident scenario.
“Wave-In” Accidents: Giving up the right-of-way to another driver and then intentionally causing an accident after “waving” them in.
Phantom Passengers: Fraudulently listing passengers in accident reports who were not actually in the vehicle at the time of the collision to inflate injury claims.
Fake Witnesses: Including names of “witnesses” in accident reports who were not present at the scene or are part of the fraud ring.
Exaggerated Injury Claims: Claiming injuries that are disproportionate to the severity of vehicle damage in the accident.
Temporary Vehicle Registrations: Drivers involved in staged accidents sometimes use temporary vehicle registrations to obscure vehicle history.
Pre-Existing Vehicle Damage: Using vehicles with pre-existing damage to stage accidents and claim new damage repairs.
Unsolicited Attorney Contact: Being contacted by an attorney shortly after an accident without you having solicited legal representation.

If you are involved in a car accident, be wary of any unsolicited referrals to body shops, law offices, or medical clinics. Organized accident rings and “cappers” actively recruit individuals to participate in staged accidents. “Paper accidents,” where accidents are fabricated on paper without actually occurring, are also a growing trend in insurance fraud, as they carry less risk of physical injury and police scrutiny.

Choosing Auto Body Repair Shops: Your Rights

Under California Insurance Code §758.5, insurance companies cannot mandate that you have your vehicle repaired at a specific auto body repair shop. However, an insurance company can recommend a particular repair shop under specific legally defined conditions:

Consumer Request: You, the consumer, specifically request a recommendation from the insurance company for a repair shop.
Disclosure of Choice: You must be informed in writing of your right to choose any repair shop of your preference.
Restoration to Pre-Accident Condition at Recommended Shop: If you agree to use the insurance company’s recommended repair shop, the insurer must guarantee that the shop will restore your damaged vehicle to its pre-accident condition at no additional cost to you, beyond what is stated in your policy or allowed by law.
Written Notice After Oral Recommendation: If the insurance company makes an oral recommendation for a repair shop, and you accept it, they must follow up with the legally required written notice within five calendar days.

If you choose to have your vehicle repaired at a shop of your own choosing, the insurance company is obligated to pay the “reasonable costs” to repair your vehicle. Reasonable costs are defined as those made in accordance with accepted trade standards for good and workmanlike automotive repairs.

No Discounting Based on Recommended Shop Rates: Insurance companies are prohibited from limiting or reducing reasonable repair costs based on what it would have cost to repair the vehicle at their recommended shop. You have the right to choose your own shop, and the insurer must pay fairly for repairs at that shop, as long as they are reasonable and performed to industry standards.
Responsibility for Recommended Shop Repairs: The insurance company must stand behind the quality of repairs made by their recommended shop. If the vehicle is not repaired properly by the recommended shop, the insurance company is responsible for ensuring corrective repairs are made.

Auto Replacement Parts: OEM vs. Aftermarket

In some auto repairs, damaged parts may be replaced with aftermarket parts, which are parts not manufactured by the original vehicle manufacturer. Aftermarket parts can be of comparable or even superior quality to Original Equipment Manufacturer (OEM) parts. While aftermarket parts can be used for repairs, California law mandates that any aftermarket part used must be “comparable” to OEM parts in terms of “kind, quality, safety, fit, and performance.”

As a consumer, keep the following points in mind:

Written Repair Estimates and Invoices: Auto repair shops are legally required to provide you with a written repair estimate before starting any repairs on your vehicle. Once the repairs are completed, the shop must provide a detailed written repair invoice.
Parts Identification on Invoice: California law requires that the repair invoice clearly identify the type of auto parts used for each replacement. Carefully review your invoice to ensure that each replaced part is identified as “used,” “reconditioned,” “rebuilt,” “aftermarket,” or “original equipment manufacturer part (OEM).” This transparency helps you understand what parts were used in your vehicle’s repair.

Alt text: Side-by-side comparison of OEM and aftermarket car parts, illustrating the choice in replacement components.

Contact the Department of Insurance

The California Department of Insurance (CDI) is the state agency responsible for regulating the insurance industry and protecting the rights of insurance consumers in California. Contact the CDI if:

You believe an insurance agent, broker, or company has treated you unfairly.
You have questions or concerns about health insurance.
You want to order CDI consumer brochures or publications.
You wish to file a Request for Assistance (RFA) against your agent, broker, or insurance company regarding a complaint or issue.
You are experiencing difficulties opening a claim with your insurance company or resolving a claim dispute.
You want to verify the license status of an insurance agent, broker, or insurance company in California.

California Department of Insurance Contact Information:

Consumer Hotline: 1-800-927-4357

TDD (Telecommunications Device for the Deaf): 1-800-482-4833

Write To:

California Department of Insurance

300 South Spring St., South Tower, Los Angeles, CA 90013

Visit in Person:

300 South Spring St., South Tower, 9th Floor, Los Angeles, CA 90013

Hours: 8:00 AM to 5:00 PM, Monday to Friday, excluding holidays

By being informed and prepared, you can confidently navigate the steps what to do after a car accident and protect your rights as a consumer. cars.edu.vn is committed to providing you with reliable automotive information to keep you safe and informed on the road.