Is it Mandatory to File a Lawsuit for Vehicle Damage?
No. If the damaged vehicle has comprehensive insurance, the policy can be used, and the insurance companies will handle the claim between themselves. If the matter is not settled amicably, a tort claim can be filed in court against the at-fault driver and/or their insurance company.
My Vehicle Was Damaged by a Third Party, and I Want to Sue Without Involving My Insurance; What Should I Do?
When an accident results in no bodily injury, a claimant seeking compensation for damages has three options:
- Reach a settlement with the at-fault driver for damage payment without involving insurance (usually done when damages are minor, or both parties do not wish to activate insurance);
- If the policy requires reporting all insurance events, but the claimant does not wish to activate insurance: the insured must contact the insurer immediately and request a signed original “no claim filed” confirmation.
- Without a contractual reporting obligation (in the policy), a lawsuit can be filed against the at-fault party and/or their insurance company (if any). This option is often used when the at-fault party’s insurer is unwilling to pay a sum acceptable to the claimant.
What is a “No Claim Filed” Confirmation?
A document issued by the insurer stating that the insured reported a vehicle damage incident but did not file a claim under their insurance policy. Insurers insist on this form to prevent duplicate claims; i.e., the claimant suing both the at-fault driver and the insurance company.
Vehicle Damage Due to a Public Hazard. Whom Can I Sue?
The municipality or the damaged vehicle’s insurance company (if comprehensive insurance exists). Claimants often prefer suing the municipality to avoid paying deductibles and losing the “no claims” discount on their insurance policies. However, not all damage constitutes grounds for a claim against the municipality, only obstacles in the roadway (e.g., potholes, protruding garbage cans, inadequate lighting, etc.).
What About Bodily Injuries, Independent or Related to Property Damage?
Bodily injury in road accidents is complex. For example: what happens if the at-fault driver is uninsured? What can be claimed in a bodily injury claim? Can a small claims lawsuit be filed for bodily injury? What needs to be included in a bodily injury claim? And what about accidents en route to work?
For your convenience, we have compiled all the answers in the article – Bodily Injury in Road Accidents: How and Whom to Sue?
What to Include in a Vehicle Damage Claim?
The required documents vary depending on the circumstances. However, experience shows that the following documents are usually included:
- Copy of the damaged vehicle’s registration;
- Copy of the compulsory insurance policy;
- Photographs of the vehicle damage and the accident scene at the time of the incident;
- Graphical sketch of the accident location and sequence;
- Video of the incident (usually where the vehicle has a camera);
- Appraiser’s report assessing the damage and appraisal invoice;
- Repair invoices;
- If a police report/complaint was filed: the accident report, indictment (if filed), criminal court judgment (if issued), and supporting documents (as relevant).
- Medical documents (if bodily injury/emotional distress was also sustained);
- Relevant correspondence regarding the accident (e.g., correspondence with the insurance company; warning letters and responses; etc.)
How Long Can an Insurance Benefit Claim Be Filed?
If only suing the insurance company, the claimant has 3 years from the date of the qualifying event to do so. Section 31 of the Insurance Contracts Law, 5741-1981 sets a shorter limitation period than that provided in the Law of Limitation (usually 7 years). If the claim also includes bodily injury and disability percentage: some insurance companies stipulate in the policy that the limitation period begins from the date the disability percentage is determined; i.e., this is the starting point for the 3-year period.
Where to File a Vehicle Damage Claim?
This depends on the damage amount and the relief sought. If the requested compensation does not exceed the small claims court limit (ILS 38,900, as of January 2023), a small claims lawsuit can be filed. Many claimants prefer foregoing part of the possible compensation to litigate in small claims court. This process is significantly more efficient, faster, and cheaper than a standard civil proceeding.
