Property Damage Claims After An Accident:
Use Your Insurance Or Theirs?

Imagine you’re sitting at a red light on Bardstown Road in Louisville. A distracted driver rear-ends you. Your bumper is smashed, your trunk won’t close, and you need a rental car. The other driver admits fault, hands you their insurance card, and tells you to “just call my insurance.” Sounds simple. But weeks later, the at-fault driver’s insurer still hasn’t returned your calls, your car is still sitting in a lot, and you’re paying for rides to work. This is where knowing your options matters.

What Is the Difference Between a Collision Claim and a Liability Claim?

A collision claim is filed through your own auto insurance policy. It uses your collision coverage to pay for repairs to your vehicle regardless of who caused the accident. You pay your deductible (typically $500 or $1,000), and your insurer covers the rest up to your vehicle’s value.

A liability claim (also called a “third-party claim”) is filed against the at-fault driver’s property damage liability insurance. Under Kentucky law, every driver must carry at least $25,000 in property damage liability coverage. When you file this type of claim, the at-fault driver’s insurer pays for your repairs. You do not owe a deductible.

Kentucky’s no-fault system applies only to bodily injury claims through PIP insurance. Property damage is always fault-based. The person who caused the crash is responsible for the damage to your vehicle. If you want to learn more about how added PIP coverage works in Kentucky, that is a separate consideration for your medical bills, not your car.

When Should You File Through Your Own Collision Coverage?

Filing through your own collision coverage makes sense when speed matters. If your car is not drivable and you need it repaired quickly, your own insurer will typically assign an adjuster and start the process within days. According to the J.D. Power 2025 U.S. Auto Claims Satisfaction Study, overall satisfaction with auto claims sits at 700 out of 1,000 points, with speed of settlement being a major factor.

Your own insurer has a contractual duty to you as their policyholder. The at-fault driver’s insurer does not. That means your insurer must process your claim in good faith under Kentucky law, while the other driver’s insurer has no such obligation to you.

Filing through collision also makes sense when fault is disputed. If the other driver’s insurance company is dragging its feet, denying fault, or making lowball offers, you can bypass that entire process by using your own coverage and letting your insurer handle the subrogation process.

When Should You File Against the At-Fault Driver’s Insurance?

Filing a third-party property damage claim against the at-fault driver’s liability insurance is the right move when you do not carry collision coverage on your own policy. Many Kentucky drivers, especially those with older or paid-off vehicles, drop collision coverage to save on premiums. If that is you, a liability claim against the other driver is your only path to getting your vehicle repaired.

Even if you do carry collision coverage, there are good reasons to file against the at-fault driver. You avoid paying a deductible. You are entitled to loss-of-use compensation, which typically means a rental car for the time needed to repair or replace your vehicle. And you can pursue a diminished value claim, which is the difference between what your car was worth before the accident and what it is worth after repairs. Kentucky case law, including Muncie v. Wiesemann (2018), supports diminished value claims against at-fault parties.

The downside is time. The at-fault driver’s insurer needs to complete its own investigation before accepting liability. That can take weeks. Meanwhile, your car sits. This delay is especially common in rain-related accidents in Louisville where fault is sometimes disputed, or in crashes involving commercial vehicles where you may be dealing with a truck accident situation with multiple insurers involved.

What Is Subrogation and How Does It Get Your Deductible Back?

Subrogation is the process your insurance company uses to recover money from the at-fault driver’s insurer after it has already paid your claim. When you file through your own collision coverage, your insurer pays for repairs minus your deductible. Then your insurer “steps into your shoes” and goes after the at-fault driver’s insurance to get reimbursed, according to State Farm.

If subrogation is successful, your insurer recovers what it paid out, and you get your deductible back. This process typically takes a few months but can take longer if fault is disputed. The key point: you get your car fixed quickly, and your deductible is returned to you later.

Not all subrogation claims succeed. If the at-fault driver is uninsured and has no assets, there may be nothing to recover. If you share some fault for the accident, your recovery may be reduced proportionally under Kentucky’s pure comparative fault system (KRS 411.182). In situations involving an uninsured driver, your uninsured and underinsured motorist coverage may come into play for the bodily injury portion of your claim.

What Happens if Your Vehicle Is a Total Loss?

A vehicle is declared a total loss in Kentucky when the cost of repairs plus the salvage value equals or exceeds 75% of the vehicle’s actual cash value. When that happens, the insurer pays you the actual cash value of your vehicle rather than repairing it.

The same collision-vs.-liability decision applies here. If you file through your own collision coverage, the payout comes faster but is reduced by your deductible. If you file against the at-fault driver’s liability insurance, you receive the full actual cash value with no deductible, but the timeline is longer.

Kentucky recently passed SB 136, which directs the Kentucky Department of Insurance to identify nationally accepted car valuation guides for determining actual cash value. The approved guides are Kelley Blue Book and J.D. Power. If you believe the insurer’s total loss offer is too low, you can request documentation of how they calculated the value and challenge it with your own evidence.

Who Pays for a Rental Car While Your Vehicle Is Being Repaired?

If you file against the at-fault driver’s insurance, they owe you “loss of use” compensation. In Kentucky, this means the at-fault driver’s insurer must provide a rental car or reimburse you for transportation costs for the time needed to repair or replace your vehicle. Learn more about how this plays out in rental car accident situations in Louisville where multiple policies may be involved.

There is an important detail here. If your car is not drivable after the crash, or not street-legal, you are entitled to a rental right away because you have already lost the use of your vehicle. But if your car is still drivable, the at-fault insurer generally does not owe you a rental until the car goes into the shop for repairs.

If you file through your own collision coverage, a rental is only covered if your policy includes rental reimbursement coverage. This is an optional add-on that many drivers carry but some do not. Typical limits run around $30 to $50 per day for up to 30 days. Check your declarations page to see if you have it.

What Are Common Mistakes People Make With Property Damage Claims?

Waiting Too Long to Get Repairs Started

Many people wait for the at-fault driver’s insurance to “handle everything” and end up without a car for weeks or months. If you have collision coverage, use it. Get your car into the shop and let the insurance companies sort out who owes whom.

Accepting the First Total Loss Offer Without Checking

Insurance companies often undervalue vehicles on total loss claims. Before accepting, check Kelley Blue Book and J.D. Power for comparable vehicles in your area. Kentucky’s SB 136 gives you the right to use these same guides.

Not Knowing About Diminished Value

Even after a perfect repair, your car is worth less because of the accident history. Kentucky law allows you to recover this “diminished value” from the at-fault driver. You cannot recover diminished value from your own insurer in a first-party claim. This is a third-party claim only.

Forgetting About Storage Fees

If your car is towed to a lot after the crash, storage fees pile up every day. Move your vehicle to a body shop or your own property as quickly as possible. The at-fault insurer may not cover excessive storage fees if you let the car sit without reason.