How to Handle Your Property Damage Claim After a Car Accident in Tennessee

by

Michael D. Ponce

Last Updated November 3, 2026 In Car Accident

After a car wreck, getting your vehicle repaired or replaced can become a job of its own. You may be dealing with an insurance adjuster, towing charges, repair estimates, and rental deadlines—all while trying to get back to your normal routine.

Even if you do not believe you were injured, you still need your property damage handled fairly. Understanding the process can help you avoid unnecessary expenses and make informed decisions before settling.

These are the same practical issues we help our injury clients work through at Ponce Law.

1. Decide Which Insurance Company to Use

There are usually two main places to look for payment: the at-fault driver’s insurance company and your own insurance company.

The at-fault driver’s insurance

If the other driver caused the wreck, you can submit a property damage claim to their liability insurer. If the company accepts responsibility and coverage applies, it generally pays covered property damage and reasonable rental expenses, subject to applicable limits. You do not pay a deductible on a claim against the other driver’s liability insurance.

This can be a good option when the insurer accepts responsibility and moves promptly. Disputes about fault or coverage can slow things down, however, and sharing responsibility for the wreck can affect your recovery.

Your own collision coverage

If you carry collision coverage, you can usually use it for crash damage to your vehicle regardless of who caused the accident. Your deductible generally applies. That is the portion you pay yourself—often $500 or $1,000.

Using your own coverage may move the claim forward while the companies investigate fault. Rental reimbursement is usually a separate coverage, so do not assume collision coverage includes a rental car. [1]

Your insurer may then pursue reimbursement from the responsible driver or their insurance company, a process called subrogation. Ask your adjuster to include your deductible in that demand. Tennessee’s claims rules require insurers to include it upon request and generally share recoveries proportionately, unless the deductible has already been recovered. Getting your entire deductible back is not guaranteed. [2]

What if the other driver is uninsured?

Check whether you purchased uninsured motorist property damage coverage. It may help even if you do not carry collision coverage.

Do not assume that this coverage always has no deductible. Tennessee law generally provides for a $200 deductible, with a waiver when the vehicle has both collision and uninsured motorist property damage coverage through the same insurer and the other driver is positively identified and solely at fault. Ask which coverage and deductible apply to your claim. [3]

Start with your declarations page—the summary of the coverage you purchased—and ask your agent about collision, uninsured motorist property damage, rental reimbursement, and towing benefits. Comprehensive coverage generally addresses other causes of damage, such as theft or hail.

If an insurer denies your claim, request a written explanation. An insurance denial does not, by itself, establish that the other driver has no legal responsibility.

2. Get Your Vehicle Out of Expensive Storage

If your vehicle was towed, storage charges may be increasing every day. Act promptly, even if the insurance companies are still investigating.

Locate the vehicle. Check the crash report or contact the responding law enforcement agency for the tow company’s information.

Photograph it before it moves, if safely possible. Capture all sides, the interior, mileage, damaged areas, and damaged belongings. Keep copies of towing and storage invoices.

Remove your belongings and coordinate a move. Work with the adjuster to arrange lower-cost storage and provide any authorization the tow lot needs. Ask in writing who will pay the towing, storage, and moving charges. Avoidable charges can become a dispute.

If fault is contested, important evidence needs to be preserved. Tell the adjuster in writing that the vehicle and any crash data should be preserved. Some vehicles contain an event data recorder, sometimes called a “black box,” that requires qualified assistance to download.

Preserving evidence and controlling storage costs should happen together. Arrange suitable storage while inspection or data collection is pending.

3. Understand the Repair Process

The insurer will generally arrange an inspection or request a repair estimate. You should also get an estimate from a body shop you trust.

Ask the shop and adjuster to address differences before work begins. Damage hidden behind panels or underneath the vehicle may require a supplemental estimate during repairs. Confirm approval for additional work before assuming the insurer will pay.

Keep copies of:

• The original estimate and supplements.
• Photos taken before and during repairs.
• Repair authorizations and final invoices.
• Communications about parts, delays, and payment.

Inspect the completed work and promptly report problems with warning lights, alignment, paint, unusual noises, or other issues.

The insurer may pay the shop directly or issue a check naming you, the shop, or your lender. If you own the vehicle outright, you may have flexibility about whether to repair it. If you have a loan or lease, review that agreement first. Either way, the vehicle must be safe and legal to drive.

4. Check a Total-Loss Offer Before Accepting It

An insurer may declare a total loss when repairing the vehicle is not economically practical. The vehicle payment generally starts with its value immediately before the wreck, rather than what you originally paid or still owe.

Ask for the written valuation report and an itemized settlement breakdown.

Check the report for mistakes involving:

• Mileage and trim level.
• Options and equipment.
• Pre-accident condition.
• Previous damage.
• The vehicles used as comparisons.

Then research comparable vehicles. Pricing guides such as Kelley Blue Book and J.D. Power can provide context. Local listings can help show what similar vehicles cost in your market. Compare the same year, make, model, mileage, features, and condition whenever possible.

Save dated screenshots. Remember that an advertised asking price is not necessarily the final selling price.

Send receipts for recent tires, major repairs, or upgrades that support the vehicle’s condition. Those expenses may help your argument, but they do not automatically increase the settlement dollar for dollar.

Ask about taxes and fees, too. Tennessee’s rules for qualifying first-party total-loss settlements through your own insurer expressly address applicable taxes, license fees, and ownership-transfer fees. [2]

Keep negotiations focused on documents and specific errors. A short written explanation with supporting comparisons is more useful than simply saying the offer feels too low.

5. Know How Loans and Gap Coverage Affect Your Payment

Your loan balance does not determine your vehicle’s value.

If the vehicle settlement is $10,000 and the loan payoff is $5,000, the lender receives its payoff, and the remaining vehicle proceeds generally go to you.

If the settlement is $5,000 and you owe $10,000, the payment may all go toward the loan, leaving you responsible for the remaining balance. Gap coverage may help, depending on its terms, limits, and exclusions.

A title loan can also affect the payment, even if you previously paid off your original vehicle loan.

Request a current payoff statement and ask how the insurer will handle the lien. Continue meeting your loan obligations unless the lender agrees otherwise; do not assume the claim automatically pauses your payments.

6. Think Carefully Before Keeping a Totaled Vehicle

Keeping the vehicle usually reduces the cash payment because the insurer deducts its salvage value—what it is worth in its damaged condition. A lender may also need to approve.

Before deciding, get written answers about:

• The salvage deduction.
• Towing and storage charges.
• Repair costs.
• Title and registration requirements.
• Your ability to insure the repaired vehicle.

Tennessee has specific salvage, rebuilt, and nonrepairable vehicle requirements. A vehicle subject to salvage requirements cannot simply be repaired and driven as usual; the applicable rebuilt-title process must be completed. A nonrepairable vehicle cannot be restored for road use. Confirm your vehicle’s status with the Tennessee Department of Revenue or your county clerk before agreeing to keep it. [4]

7. Include Belongings Damaged in the Wreck

Your vehicle may not be the only damaged property. A claim against the responsible driver can include belongings damaged because of the collision, such as a phone, laptop, tools, prescription glasses, or a musical instrument.

Make an itemized list. Photograph each item and document its age, condition, and value with receipts or comparable listings. The cost of buying a brand-new replacement is not always the amount owed for a used item.

For a child’s car seat, follow the manufacturer’s crash-replacement instructions and ask the adjuster about replacement.

Your own collision coverage generally does not cover loose personal belongings. Ask whether uninsured motorist property damage, homeowners, renters, or other coverage may apply, and what deductibles or exclusions affect the claim.

8. Ask About Diminished Value Before Settling

A repaired vehicle may sell for less because it has an accident history. But Tennessee does not automatically award repair costs plus a separate payment for reduced resale value.

Tennessee courts generally use repair costs when repairs substantially restore the vehicle’s function, appearance, and value. If that restoration is not achieved, the alternative measure is the difference in fair market value immediately before and immediately after the accident.

In Grimes v. Hancock, the Court of Appeals reaffirmed these limits. Additional recovery requires appropriate valuation evidence; simply showing a lower trade-in estimate after repairs may not establish the amount legally recoverable. [5]

If you believe repairs have left a meaningful loss in value, raise the issue before signing a final release. An appraisal should address the vehicle’s pre-accident value, its damaged value before repairs, and whether repairs substantially restored its value.

9. Get Rental Approval and Deadlines in Writing

When dealing with the at-fault driver’s insurer, ask it to approve a reasonably comparable rental. Explain practical needs, such as seating for children or space for necessary equipment.

Before renting, confirm:

• The approved daily rate.
• Which taxes and fees are covered.
• The approved payment period.
• How to request an extension.
• Whether additional insurance or a damage waiver is covered.

For repairs, keep the adjuster informed about delays and request extensions before approval expires. Under your own policy, daily and total rental limits may run out before repairs finish.

For a total loss, confirm the rental cutoff immediately. Do not assume payment continues until your settlement check arrives or until you find a replacement.

Ask your agent whether your own policy covers the rental and what deductible applies. Return the rental when approved payment ends unless you arrange to pay for additional time yourself.

What about loss of use?

Loss of use addresses being without your vehicle during the reasonable repair period. Rental costs and the repair timeline can help document that loss.

Tennessee law is more restrictive when a vehicle is damaged beyond repair. Loss-of-use compensation is not an automatic payment for all the time spent shopping for a replacement. Keep records of specific expenses and obtain advice if this part of the claim is disputed. You also cannot recover twice for the same loss already covered by a paid rental. [6]

10. Read the Release Before Signing

Do not let a property damage settlement unintentionally settle an injury claim.

Read the entire release, including the small print. It should cover only the property claims you intend to resolve.

Pause if you see language such as:

• “Bodily injury” or “personal injury.”
• “All claims.”
• “Any and all injuries, known or unknown.”

Broad release language can affect rights beyond vehicle damage. Even if you initially feel fine, symptoms may become apparent later. Seek medical attention for new or concerning symptoms.

Ask the adjuster for a corrected release expressly preserving injury claims. Do not assume that crossing out a few words yourself is sufficient. Read the revised version again before signing.

Also make sure the agreement addresses every property item you intend to claim, including belongings, towing, storage, rental expenses, and any disputed loss in value. Review settlement language on checks and accompanying documents as well.

What to Do if the Claim Gets Stuck

Ask the adjuster to identify what remains unresolved and what documents are needed. If necessary, request a supervisor’s review.

For questions about your own insurer’s handling of a Tennessee policy, the Tennessee Department of Commerce and Insurance offers consumer assistance. Its authority has limits: it cannot determine fault or property value, act as your attorney, or negotiate a third-party settlement. [7]

Do not assume ongoing negotiations preserve legal deadlines. Get advice promptly if a dispute continues.

How Ponce Law Can Help

Many straightforward property damage claims can be handled without a lawyer. Knowing what to document, what questions to ask, and what to check before signing can make the process easier.

If you were also injured, contact Ponce Law online or call 615-851-1776 to discuss whether we can help. We assist with property damage as part of injury representation rather than accepting standalone property damage cases.

Ponce Law. Justice for All.

This article provides general information about Tennessee property damage claims. It is not legal advice and does not create an attorney-client relationship. Available coverage and recovery depend on the facts, policy terms, and applicable law.

Sources

[1] Tennessee Department of Commerce and Insurance, Glossary of Insurance Terms

https://www.tn.gov/commerce/insurance/consumer-edu/glossary-of-insurance-terms.html

[2] Tenn. Comp. R. & Regs. 0780-01-05-.09, Standards for Automobile Insurance Settlements

https://www.law.cornell.edu/regulations/tennessee/Tenn-Comp-R-Regs-0780-01-05-.09

[3] Tenn. Code Ann. § 56-7-1201(c), Uninsured Motorist Property Damage Coverage

https://law.justia.com/codes/tennessee/title-56/chapter-7/part-12/section-56-7-1201/

[4] Tennessee Department of Revenue, The Salvage and Rebuilt Process

https://revenue.support.tn.gov/hc/en-us/articles/360060534371-RBLT-1-The-Salvage-Rebuilt-Process-New-Title-Application

[5] Grimes v. Hancock, No. M2011-01940-COA-R3-CV (Tenn. Ct. App. June 26, 2012)

https://law.justia.com/cases/tennessee/court-of-appeals/2012/m2011-01940-coa-r3-cv.html

[6] Prewitt v. Brown, No. M2016-00874-COA-R3-CV (Tenn. Ct. App. Jan. 30, 2017)

https://law.justia.com/cases/tennessee/court-of-appeals/2017/m2016-00874-coa-r3-cv.html

[7] Tennessee Department of Commerce and Insurance, Insurance Complaint Instructions

https://www.tn.gov/content/tn/commerce/insurance/consumer-resources/file-a-complaint/complaint-instructions.html