Your Car After The Accident

Repair or Replacement 

What happens after you have had an accident? 

What is the process? 

Saskatchewan Residents

 

If you hold Saskatchewan insurance you must deal with SGI who makes the determination as to whether your car is to be repaired or written off.   Please remember that your package policy (even if it was purchased from SGI) is with a different company.   You must contact your insurance advisor and let him know of your accident in addition to contacting SGI to report the claim, so any losses not paid by SGI are handled appropriately.    If you wait to report your claim to your agent you may run into some difficulties as a result.

 

SGI will want you to make an appointment at their claims center if the vehicle is operable.  If it has been towed to an auto body shop they will inspect it there.   It may have been towed to an SGI or accident compound so SGI will either pick it up or inspect it at that location.

 

 For rural residents, SGI will adjust the vehicle at the repair garage in your local so you do not have to drive to SGI’s location. SGI will inspect the vehicle and determine what has to be done to repair the vehicle. They will price the parts and labour and offer the work to the body shop of your choice. If the body shop is an accredited SGI repair shop they will deal directly with SGI from here on.

 

Once the body shop has had the opportunity to inspect the automobile they may discover something is missed on the estimate SGI made.   It is the responsibility of the body shop to make arrangements to include the repairs in the estimate.  If they accept the job they have to complete it.  Once SGI and the repair garage are in agreement your vehicle will be fixed.  You will not be required to get a second estimate unless the repair garage and SGI can’t agree on the actual repairs required. 

SGI will pay for the repair or market value of your car (including equipment, but not contents), or pay you the actual cash value of your car in the condition it was in immediately before it was damaged. You will be responsible for the deductible. 

When the insurance company settles your claim on the basis of repairing or rebuilding your damaged vehicle, the bottom line is that you should end up with a car that is as good as yours was before it was damaged.   They may use salvage parts if they are available and in good condition.  This should not be a concern for older vehicles but on newer vehicles you may want to inquire as to the condition of the parts being used to repair your vehicle. 

Should your car need replacing, you will receive a cash settlement based on the fair market value of your vehicle before it was damaged.   

 

 

First Things First

Saskatchewan - SGI will want you to make an appointment at their claims center.  For rurual residents SGI will adjust the vehicle at the repair garage. SGI will inspect the vehicle and determine what has to be done to repair the vehicle.  They will price the parts and labour and offer the work to the body shop of your choice.   If the body shop is an acredited SGI repair shop they will deal direcly with SGI form here on.  If something is missed on the estimate the body shop will advise SGI and make arrangements to include the repairs in the estimate.   Once SGI and the repair garage are in agreement your vehicle will be fixed.  It is not likely that you will be required to get a second estimate unless the repair garage and SGI can not agree. 

If you have Collision coverage, your insurance company will pay for the repair or market value of your car (including equipment, but not contents), or pay you the actual cash value of your car in the condition it was in immediately before it was damaged. You will be responsible for the deductible.

When the insurance company settles your claim on the basis of repairing or rebuilding your damaged vehicle, the bottom line is that you should end up with a car that is as good as yours was before it was damaged.

Should your car need replacing, you will receive a cash settlement based on the fair market value of your vehicle before it was damaged.

 

 

Betterment

The purpose of auto insurance is to return you to the position you were in just prior to the collision. In the case of your vehicle, your insurer is responsible only to pay to fix the damage. If your vehicle is made better, you may have to contribute. For example, if a rusty door panel that had been dented in a collision were to be replaced with one that is not rusty, you may be expected to contribute financially towards the "betterment" of your vehicle.

 

Likewise, you may wish to get additional work completed that is not directly related to the collision damage. This is permissible, but the extra work is betterment and has to be at your own expense.

Write-off

If the estimated repair cost plus the salvage value of the damaged vehicle exceeds the cash value of the vehicle before it was damaged, the insurer may decide to treat the vehicle as a write-off instead of paying to repair it. The insurer will pay you the pre-collision value of the car, minus your deductible, and keep the salvage.

Reconditioned/used parts

Repairers sometimes use reconditioned or used parts. The parts must be of the same kind and quality as the originals, and must not adversely affect the operation of the vehicle.As any vehicle ages, it loses some of its value. That’s why the insurance company is justified in replacing damaged parts with recycled parts that are undamaged. This complies with an agreement in your policy.

After-market parts

If your vehicle is in its first production year, there will likely be OEM (Original Equipment Manufacturer) parts available to complete repair. These parts are new.

New parts may also include "after-market" replacement parts.

After-market parts can be an over-run from makers of original parts, or made by manufacturers who specialize in replacement automobile parts. After-market parts approved by Certified Automobile Parts Association meet or exceed Original Equipment Manufactured specifications and are suitable replacement parts.

Safety-related parts are usually new. Regardless of the age of your vehicle, most insurance companies will insist safety-related parts required for repairs be new. For example, a 50% worn tire would be replaced with a new tire and you, as the policyholder, would be expected to pay for the extra tire life added to that wheel. This is called “betterment."

Preferred vehicle repair shops

If your vehicle is damaged but repairable (and you have the necessary coverage in your policy) your insurer will likely suggest that the repairs be carried out by one of their "preferred shops." Preferred shop programs benefit consumers in two ways: they control claims costs because prices are established in a contractual arrangement between a shop and an insurer; and they ensure that a shop’s work meets a high standard.

If you agree to send your vehicle to a preferred shop, your insurer will deal directly with the shop and will guarantee that the work is done satisfactorily. If you choose a shop that is not part of your insurer’s preferred shop program, it will be your responsibility to deal with the repair shop. Also, be aware that the insurer will not pay any more than the price quoted by their repairer