A property damage traffic accident is an accident in which no one gets injured or dead. Still, only properties get damaged in a traffic accident — for example, a collision between two cars without injuries or the death of people. While a personal injury traffic accident is based on the Act on Securing Compensation for Automobile Accidents, a property damage traffic accident is based on Civil Code Act.709. That practically means: if the other party damages your property, you have to prove the damage was caused by him/her. You also have to prove the extent of the damage by yourself. Proving it by yourself is necessary for claiming compensation to the other party. If it is a personal injury traffic accident, it’s not the victim’s duty to prove the damage. So, take care to collect and keep the information so that you can prove your damage and get compensated for that. Only if the at-fault party is with voluntary insurance, the adjuster from the insurance company will assess the damage, so you don’t have to prove it by yourself.
What kind of damage is for compensation in a property damage traffic accident?
The following are examples of the cost items for compensation when your property is damaged in a traffic accident.
- Repairing cost for damaged property
- Cost for using alternative car
- Business compensation
Repairing cost for damaged property
All the repairing cost is for compensation. However, the estimated repairing cost is more expensive than the market price of the product; only the market price is for compensation. Besides, in the case where the estimated value of the repaired car decreases, the decreased cost is also for compensation.
For example, if the estimated value of the repaired car was JPY500,000 despite the value of the vehicle initially was JPY800,000, the gap of JPY300,000 is also for compensation
Cost for using replacement car
The cost of using a replacement car while waiting for the repair is also for compensation. However, you have to prove the replacement car is necessary when claiming compensation. For example, if you have another vehicle that you can use when the damaged vehicle is under repairing process, the cost for using a replacement car will not be compensated.
compensated. Business compensation
If your business stops because of the damaged property, lost profit for the business is also for compensation only if you can prove it is due to the damage.
Another cost items
Other than this cost, we indicated in the above; the following cost is also for compensation.
- Wrecker charges for damaged vehicles
- Storage costs for damaged vehicles
Note that you cannot claim consolation money for the damaged property. In Japan, consolation money is only for injury, death, or residual disability. Even if the damaged property was essential for your life and you are sad about the damage, it’s not for compensation, unfortunately.
How to bear the repairing cost between two parties.
In most of the traffic accident cases, both parties are negligent. So, let’s think about an example case where a collision occurred between person A and person B. While person A was 40% negligent in the accident, person B was 60% negligent. If A’s car costs JPY600,000 as repairing fee and B’s car costs JPY1,000,0000 as repairing fee, the compensation cost of each party is as follows:
Person A: JPY1600,000 * 0.4 = JPY640,000
Person B: JPY1600,000* 0.6 = JPY960,000