What to do after a car accident

Next, look at the cover sheet of the policy, which is called the declarations page and which lists the types and dollar limits of your coverage, including short-hand references to any discounts or special provisions you have elected to purchase.

Last, there's the actual insuring agreement itself, which explains what your insurer is protecting you against, including definitions of terms used in the agreement and explanations of what's not covered (called the exclusions).

If you don't understand your policy, keep calling your agent and/or state insurance department until you get clear answers to your questions. Most people have heard that ignorance is no defense under the law, but they don't think they'll ever have to find out. Auto accidents are one of the most common ways to discover the sobering cost of ignorance.

The payments

Hopefully, your accident involves only damages to things and not to people. And, hopefully, it wasn't your fault.

Even if it's just your car that's banged up, repairs can be a major headache. This is where the reality sets in that replacement cost is not the same thing as market value. Your car can easily be declared a total loss even though the money you'd receive is nowhere near what it would cost you to replace the vehicle.

The best advice about getting your car fixed is to remember that the money may be coming from the insurance company but you should control the repair process. This means refusing to settle for a repair job you don't like. And it may also mean refusing to accept the use of generic replacement parts instead of the original manufacturer's parts (your policy may give your insurer the right to use generic parts, so it's important to check the fine print to know your rights). Even if your favorite shop doesn't do the repairs, you can still have your mechanic look at the car (although this may be at your personal expense) and provide an assessment of what should be fixed. Ultimately, it's your car and your call about what's done to it.

Talk to your agent and/or insurer about your rights (better still, you should really ask these questions before you buy a policy). And if you don't like the answers, call your state insurance department.

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