Ok, first off, that belt is off, so I wouldn't start it like that. That belt goes to the power steering, so it isn't going to kill you or anything. There should be a screw that moves the power steering pump on a pivot to allow you to tighten and loosen that belt. It would appear to me, they put the belt on, but forgot to tighten the belt by adjusting the powersteering pump. My recommendation would be to get a brand new power steering accessory belt, remove the one that is flapping around in there, and then replace it. I would NOT drive it with that belt flapping about like that. If you have to, cut it out of there, though that may be tough as I believe they are steel wire belted internally. Best bet would be to borrow another vehicle, drive to either Morries MTKA Subaru or possibly a Napa, and tell them what belt you need. It should be a relatively easy fix.
That belt routes around the power steering pump, over to the alternator and down to the crank pulley which it is clearly off. You will want to adjust the the 12mm bolt in between the PS pump and alternator. This will allow you to hinge the alternator down and get the belt over the outer belt ridge and get it on the alternator. The reverse it up moving the alternator up and thus tightening the belt. You will also want to loosen the bolt where the alternator holds to the bracket on the right side if you are looking at it and also make sure on the tensioner bracket (the one that moves the alt up and down) make sure you loosen the bolt that holds it in place. The head of that bolt will be facing the fans.
Also how do you not show a battery light, that belt goes to the alternator which charges your car and if not changing and spinning off of the crank pulley you should be showing a battery check light on your dash.
the battery light and brake light came on when it happened. Just got the car back and apparently they tightened too much to the point it started grinding the inside of the pulley on the shaft which caused a knocking before this happened. due to this, the pulley would spin out of degree which caused the belt to come loose.
I am not sure what you mean by "pulley would spin out of degree" however my guess is one of a few things is wrong, they didn't tighten down the tensioner correctly, the tensioner is broken (from the accident) or something else broke in the accident. I hope for your sake, that noise when you turn the engine over is the belt hitting something.
What I meant by spinning out of degree is it was spinning like a wheel with loose nuts where it would wobble. It was tightened too much to the point it kind of pulled the pulley out.
they told me to bring it back within 100 miles to retorque if needed. its been about 50 miles already.