After a car accident in San Antonio where another driver was clearly at fault, you might expect their insurance to fully cover your vehicle repair costs. Unfortunately, many accident victims discover a frustrating reality: the at-fault driver’s insurance refuses to pay for all necessary repairs. This situation leaves many San Antonio drivers with unexpected out-of-pocket expenses and uncertainty about their legal options.
At Ryan Orsatti Law, we regularly help clients navigate these complex insurance situations. This guide will explain why insurance companies may not cover your full repair costs, what Texas law says about your rights, and what steps you can take to recover the compensation you deserve.
Why Insurance Companies Might Not Cover Your Full Repair Costs
Insurance companies employ various tactics to minimize payouts for vehicle repairs, even when their policyholder is clearly at fault. Understanding these strategies can help you prepare for negotiations and identify when you’re not being offered fair compensation.
Policy Limits Are Too Low
Texas law requires drivers to carry minimum liability insurance of $30,000 for bodily injury per person, $60,000 per accident, and $25,000 for property damage. This minimum property damage coverage ($25,000) is often insufficient for repairing modern vehicles, especially when luxury cars or newer models are involved.
If the at-fault driver only carries minimum coverage and your repair costs exceed $25,000, their insurance company is not legally obligated to pay beyond these policy limits. The insurance company has fulfilled its legal duty once it pays up to the maximum policy limit, leaving you responsible for the remainder.
Disputes Over Repair Methods and Parts
Insurance companies frequently dispute the necessity of certain repairs or the type of parts that should be used. They may:
- Insist on aftermarket parts instead of original equipment manufacturer (OEM) parts
- Decline to pay for new parts when they believe used or refurbished parts are adequate
- Question the necessity of certain repair procedures recommended by your mechanic
- Refuse to cover diagnostic tests they deem unnecessary
While aftermarket parts may be less expensive, they might not provide the same quality, warranty coverage, or value retention as OEM parts. This discrepancy creates a gap between what your repair shop recommends and what the insurance company will cover.
Depreciation and Actual Cash Value Calculations
When calculating the value of your vehicle or its parts, insurance companies apply depreciation factors that may not accurately reflect the true replacement cost. They typically use the “actual cash value” (ACV) rather than the “replacement cost” when determining payouts.
For example, if your five-year-old car needs a new transmission, the insurance company might only pay for what they determine is the value of a five-year-old transmission, not the cost of a new one. This depreciation calculation often results in a significant gap between repair costs and insurance coverage.
Disagreements About Pre-Existing Damage
Insurance adjusters routinely look for any signs of pre-existing damage to your vehicle. If they identify scratches, dents, or mechanical issues that appear unrelated to the accident, they may reduce their offer accordingly.
These determinations can be subjective and may not always be accurate. What an adjuster claims is pre-existing damage might actually be a result of the accident, but proving this can be challenging without prior documentation of your vehicle’s condition.
Your Rights Under Texas Law
Texas follows a “modified comparative fault” rule with a 51% bar. This means that if you are less than 51% responsible for an accident, you can recover damages, but your recovery will be reduced by your percentage of fault.
Understanding your rights under Texas law is essential when dealing with insufficient insurance coverage:
Right to Choose Your Own Repair Shop
Under Texas law, you have the right to choose where your vehicle is repaired. Insurance companies cannot legally require you to use their preferred repair shops, despite what they might suggest. The Texas Insurance Code Section 5.501 protects this right.
This is important because insurer-preferred shops may be incentivized to cut corners or use cheaper parts to maintain their relationship with the insurance company. By choosing your own trusted repair shop, you can ensure your vehicle receives the appropriate repairs with quality parts.
Right to Diminished Value Compensation
In Texas, you may be entitled to compensation for your vehicle’s diminished value after an accident. Even after repairs, a vehicle that has been in an accident typically has a lower market value than one that has never been damaged. This difference in value is called “diminished value.”
Texas courts have recognized three types of diminished value:
- Immediate diminished value: The difference in market value immediately before and after an accident
- Repair-related diminished value: The loss in value due to the inability to perfectly repair the vehicle to its pre-accident condition
- Market diminished value: The difference in resale value due to the vehicle’s accident history
To recover diminished value, you’ll need to file a diminished value claim, typically supported by a professional appraisal documenting the reduction in your vehicle’s market value.
Underinsured Motorist Coverage
If you carry underinsured motorist (UIM) property damage coverage on your own insurance policy, you may be able to claim the difference between your total repair costs and what the at-fault driver’s insurance paid, up to your policy limits.
UIM coverage is not mandatory in Texas, but it’s a valuable protection that can help bridge the gap when the at-fault driver’s insurance is insufficient. Check your insurance policy to determine if you have this coverage and what limits apply.
Steps to Take When Insurance Won’t Pay Full Repair Costs
If you find yourself facing a shortfall in insurance coverage for your vehicle repairs, take these strategic steps to protect your rights and maximize your recovery:
1. Document Everything Thoroughly
Proper documentation strengthens your position when negotiating with insurance companies:
- Take detailed photos of all vehicle damage from multiple angles
- Get written repair estimates from at least two reputable repair shops
- Keep records of all communications with insurance companies, including adjuster names, dates, and summaries of conversations
- Save all receipts for expenses related to the accident, including towing, rental car costs, and diagnostic fees
- Obtain a copy of the police report if one was filed
This documentation establishes a clear record of the damage and necessary repairs, making it harder for insurance companies to dispute your claim.
2. Get an Independent Appraisal
If you disagree with the insurance company’s valuation of damages, consider hiring an independent appraiser. Look for licensed appraisers with experience in post-accident valuations and diminished value assessments.
An independent appraisal provides an objective assessment of repair costs and can be compelling evidence if your case goes to court. The Texas Department of Insurance offers a searchable database of licensed appraisers.
3. File a Complaint with the Texas Department of Insurance
If you believe the insurance company is acting in bad faith or violating Texas insurance regulations, file a complaint with the Texas Department of Insurance (TDI). The TDI can investigate your complaint and may take action against insurance companies that violate state laws.
You can file a complaint online through the TDI Consumer Protection page or call their Consumer Help Line at 1-800-252-3439.
4. Consider Small Claims Court
For disputes involving smaller amounts (up to $20,000 in most Texas counties), small claims court provides a more accessible legal remedy without requiring an attorney. If your repair cost shortfall is within this limit, small claims court may be a cost-effective option.
The Bexar County Justice of the Peace courts handle small claims in San Antonio. Visit the Bexar County JP Courts website for information on filing procedures and court locations.
5. Consult with a San Antonio Personal Injury Attorney
When significant costs are at stake or when insurance companies refuse to negotiate fairly, consulting with an experienced personal injury attorney is often your best option. A qualified attorney can:
- Evaluate the strength of your claim
- Identify all potential sources of recovery
- Negotiate directly with insurance companies on your behalf
- Represent you in litigation if necessary
- Help you recover diminished value in addition to repair costs
Most personal injury attorneys offer free initial consultations and work on a contingency fee basis, meaning you pay nothing unless they recover money for you.
Hidden Costs to Consider Beyond Basic Repairs
When calculating the true cost of vehicle damage, consider these often-overlooked expenses that may not be initially included in insurance offers:
Diminished Value
As mentioned earlier, your vehicle’s market value typically decreases after being involved in an accident, even after repairs. This diminished value can amount to thousands of dollars, especially for newer or higher-end vehicles.
Insurance companies rarely offer diminished value compensation unless specifically requested, and they may resist such claims. An experienced attorney can help you document and recover this often-substantial loss.
Rental Car Expenses
While Texas law requires at-fault drivers’ insurance to provide rental car coverage while your vehicle is being repaired, these provisions often have limitations:
- Daily rental rate caps that may be below market rates for comparable vehicles
- Limited number of covered days, which may be insufficient for complex repairs
- Exclusions for premium or specialty vehicles
If your rental car expenses exceed what insurance covers, you may be entitled to recover the difference from the at-fault driver.
Lost Wages Due to Transportation Issues
If transportation difficulties resulting from your damaged vehicle cause you to miss work or lose income, these losses may be recoverable as part of your claim. Document any missed work or lost opportunities related to your vehicle damage.
Future Mechanical Issues
Sometimes accident damage creates underlying mechanical problems that don’t become apparent until months after initial repairs. These delayed manifestations of accident damage can be difficult to prove but may be covered if properly documented by a qualified mechanic.
Prevention: Protecting Yourself Before an Accident Happens
While you can’t control other drivers’ insurance choices, you can take proactive steps to protect yourself from insufficient coverage scenarios:
Review Your Own Insurance Coverage
Consider adding these optional coverages to your policy:
- Collision coverage: Pays for repairs to your vehicle regardless of fault, subject to your deductible
- Underinsured motorist property damage coverage: Covers repair costs when the at-fault driver’s insurance is insufficient
- Rental reimbursement coverage: Provides for a rental car while your vehicle is being repaired
- Gap insurance: Pays the difference between your car’s actual cash value and what you owe on your auto loan if your vehicle is totaled
Document Your Vehicle’s Condition
Regularly document your vehicle’s condition with dated photographs. This creates a baseline record that can help dispute claims of pre-existing damage after an accident.
Choose Higher Liability Limits
If you cause an accident, having higher liability limits protects both you and other drivers from the scenario we’ve been discussing. Increasing your property damage liability coverage beyond the $25,000 minimum can provide greater peace of mind and protection for all parties involved.
Conclusion: Don’t Settle for Insufficient Coverage
When facing a gap between your actual repair costs and what the at-fault driver’s insurance will pay, remember that you have rights and options under Texas law. The insurance company’s first offer is rarely their best offer, and you shouldn’t have to pay out of pocket for someone else’s negligence.
At Ryan Orsatti Law, we help San Antonio drivers navigate these complex insurance scenarios every day. Our experienced team understands the tactics insurance companies use to minimize payments and knows how to counter them effectively.
If you’re struggling with insufficient insurance coverage after an accident in San Antonio, contact us for a free consultation. We’ll evaluate your case, explain your options, and help you develop a strategy to recover the full compensation you deserve.
This blog post is provided for informational purposes only and does not constitute legal advice. Every case is unique, and the information provided here may not apply to your specific situation. For personalized legal advice, please contact Ryan Orsatti Law directly.
Ryan Orsatti Law is committed to helping accident victims in San Antonio recover the full compensation they deserve. If you’re facing challenges with insurance coverage after an accident, call us today at [phone number] for a free consultation.