Trade-in car in case of accident – what the law says and what are the conditions for a courtesy car

Most of our daily activities depend on having a car to help us get from one place to another in optimal conditions. A road traffic incident that causes damage to our car can affect our daily lives and the way we carry out our tasks.

However, there may be a solution for people involved in an accident that was the fault of another road user. The legislation in force entitles the injured party to a replacement vehicle while their damaged car is being repaired.

In the event of a road traffic accident, find out all about the courtesy car – what it means and the conditions for getting a replacement car while the damaged vehicle is being repaired, what the legislation says, what steps you need to take to get a courtesy car, and how the process of getting a replacement car can be improved.

• Car swap in case of accident – what the law says
• What are the conditions for exchanging your car in the event of an accident?
• What steps are needed to get a courtesy car
• What problems can arise when you trade in a car
• How the process of giving a car in exchange can be improved

Car swap in case of accident – what the law says

The granting of a replacement car for the period during which a damaged vehicle is being repaired is a procedure regulated by Regulation no. 20/2017 on motor insurance in Romania, amended by Regulation 18/2022 issued by the Financial Supervisory Authority (ASF).

It provides in Article 25 that compensation to injured parties shall include the temporary replacement of the damaged vehicle with a vehicle of a similar or lower class, hired from authorized entities having this purpose. The measure is applicable following the impossibility of using the damaged vehicle and is carried out on the basis of documents proving the damage caused.

Therefore, if a person is involved in a road traffic accident caused by the fault of another road user, he or she is covered for the damages suffered as a result of the accident through the at-fault party’s MTPL insurance policy. In addition, the injured party is entitled to receive a replacement car for the period during which the damaged vehicle is technically unusable.

According to the same article of the ASF Rule, the period during which the injured party may receive a courtesy car is the period between the date of notification of the damage and the date of the insurer’s ascertainment of the damage, plus:

• the period during which the injured party takes steps to have the vehicle repaired, which may not exceed 3 working days from the date on which the insurer records the damage;
• the period needed to repair the damaged vehicle in a service establishment, starting from the date of signing the documents for repair.

In the case of damaged cars which can no longer be repaired and which fall into the category of total economic loss, the period for granting the replacement car is from the date on which the damage is reported to the date on which the MTPL insurer submits the offer of compensation.

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What are the conditions for exchanging your car in the event of an accident?

According to the law, a person who suffers damage as a result of a road traffic accident is entitled to a replacement car while the damaged vehicle is being repaired. The conditions under which a replacement car is granted for vehicles damaged in an accident are:

1. For motor vehicles that are not in a total economic loss situation:

• the car shall be granted in exchange for the period between the date of notification of the damage and the date on which the insurer ascertains the damage;
• the period during which the injured party identifies the appropriate repairer to repair the damaged vehicle, which may not exceed 3 working days, is reimbursed;
• the period during which the car is being serviced is reimbursed.

1. For vehicles that can no longer be repaired and are in a state of total damage:

• the period between the date of notification of the claim and the date on which the insurer sends the offer of compensation to the injured party shall be settled.

The granting of the exchange car does not depend on the service where the car is repaired, and the cost of the rental car on the MTPL will be fully covered by the at-fault driver’s insurance company. It is also important to note that the replacement car must be of a similar or lower class to the damaged car.

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What steps are needed to get a courtesy car

Following the road traffic accident, the parties involved must fill in the amicable settlement form, if it was a victimless accident, or obtain the document from the police. The injured party then has to follow a few steps to get the car exchanged:

• Opening the damage file – the injured party must contact the insurance company that issued the at-fault party’s MTPL policy to have the damage reported and to make an appointment for the accident report;
• Ascertainment of the damage – the injured party presents himself at the indicated point of ascertainment, where a claims inspector will ascertain the damage and issue a statement of ascertainment;
• Having the car repaired – on the basis of the statement of findings, the injured party will choose a repair shop to which he will go to have the damage repaired. It will issue the repair estimate and will repair the damage.
• Requesting a replacement car – the injured party will request a replacement car, which can be rented from authorized operators.

What documents are needed to apply for a replacement car?

In order to receive a replacement car, the following documents must be presented:

• Proof of notice of damage;
• Note of finding;
• Minutes of entry or exit from repair;
• Copy of registration certificate;
• Copy of identity card and driving license;
• The police report.

The number of days for which the exchange car is granted is calculated on the basis of the repair estimate, 4 hours of labor equals 24 hours of rental.

What problems can arise when you trade in a car

One of the main problems that can arise when it comes to giving a car in trade-in is the difficulty in finding the right vehicle and delays in supplying the right car. This can directly affect customer satisfaction while also prolonging the claims process.

The lack of a diverse fleet of cars and an efficient management system will lead to a long waiting time for customers requesting a replacement car. In addition, without a strong partnership with replacement car suppliers, insurance companies fail to meet customer demand in a timely manner.

Last but not least, the excessive bureaucracy and overly complicated verification process delays the granting of the courtesy car, affecting the mobility of customers, for whom the process of replacing a damaged car should be simple and efficient.

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How the process of giving a car in exchange can be improved

To provide efficient customer service and reduce waiting times, companies need to develop their technological and logistical capabilities. Partnerships with aftermarket suppliers will exponentially increase the availability and flexibility of options for customers.

On the other hand, a streamlined rental process as well as digitization of the replacement car request operations will support insurers in processing claims much faster, improving the customer experience.

The granting of a replacement car in the event of an accident is a right that the injured party in a road traffic accident can benefit from. Under the current legal provisions, drivers who have been injured in an accident can not only have their car repaired on the at-fault party’s MTPL policy, but also receive a replacement car for the period of the repair, the costs being borne by the at-fault party’s insurance company.

Getting a replacement car does not have to be conditional on the insurance company that issued the at-fault party’s MTPL policy. In other words, the right to receive a replacement car is guaranteed to the injured party by law, regardless of who the at-fault party’s insurer is. Last but not least, it is important to note that the insurance company pays for the rental of the car, but not for other related expenses. Optimizing the process of providing a replacement car is an important criterion when it comes to customer satisfaction.

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