PROPERTY DAMAGE

In Minnesota, when a motor vehicle is damaged or destroyed in an accident, there often are two insurance companies the vehicle's owner can deal with for compensation.

If the vehicle's owner has "collision coverage" under his or her insurance policy, the owner can seek payment under that coverage. The amount payable is usually reduced by the amount of the "deductible" under the policy. If the driver of another vehicle was responsible for the accident, the owner's insurance company can then seek reimbursement from the responsible party's insurance company and refund all or a portion of the deductible to the owner.

If the driver of another vehicle was responsible for the accident, the owner of the damaged vehicle can choose to seek payment from the insurer for the responsible vehicle instead of from the owner's own insurance policy. This payment is usually reduced by the percentage of negligence attributable to the driver of the owner's vehicle. However, if the driver of the owner's vehicle is more than 50% responsible for the accident, the owner of that vehicle is usually not entitled to anything from the insurer of the other vehicle.

The owner of the damaged vehicle might also be entitled to a rental car while his or her vehicle is being fixed.