Car insurance for repairs takes different consideration and planning than insurance meant for protecting your other assets. Liability protection – covering your home, business and investments against a lawsuit – doesn’t cover the cost of your repairs at all. To take care of your car, you need collision and comprehensive insurance coverage. Even those won’t pay for normal repairs from wear and tear.
Most types of comprehensive policies will be able to cover the costs associated with accidents. That’s one reason why auto insurers won’t take on some customers; they represent too big of a liability. They drive too fast, too recklessly or under the influence of alcohol or drugs. They take too big of risks that increase the insurance company’s chances of having to pay for repairs. Insurance companies typically do not cover repairs associated with car operations. Transmission and engine problems, brake wear and wonky fuses fall under a manufacturer’s warranty program or are the responsibility of the car owner.
When you’re in an accident, when it is your fault, your auto insurance covers the cost of repairs for your car. They could be significantly higher than you suspect! The other driver’s insurance company will not pay for your repairs if you are at fault.
A comprehensive car insurance policy covers everything else. It pays for the damage that occurs to your car when you’re not in an accident. If an uninsured car blows up and takes yours along with it, you’d better hope you have comprehensive insurance.
What’s a Deductible?
Most policies carry a deductible that needs to be paid. That dollar amount is what you must pay toward repairs before they will pick up the rest of your bills. You should keep the amount of your deductible in savings in case of an accident.
Be wary of policies that look too affordable. They often have very low coverage limits – often falling below the replacement value of your vehicle – and unreasonably high deductibles. Make sure your policy is worth the money by giving you the basic coverage you need.
Rental Inclusion and Roadside Assistance
Some car insurance for repair includes fees for rental cars while your main vehicle is in the shop. These policies may be more expensive, but double check how much they add on to your price. You could save a significant amount. Other policies include roadside assistance, and almost always cost more than their worth. A good membership in a company like AAA can be worth its weight in gold. Surprisingly, roadside assistance is also a hidden benefit for many credit card holders. Before you pay extra for this perk, check your other accounts and how much it would cost to go through an established service provider.
There are many differences in insuring your car for liability purposes and insuring it to make sure it stays in running order after being damaged. Add-ons, or the lack thereof, can make a big dent in your bottom line. Being budget-friendly isn’t always most important. Keeping an eye on the coverage you need, will be able to help you find the right policy at the best price.
Understanding How Car Insurance Repairs work
There are plenty of car insurance repair agencies that work specifically with insurers to help get your vehicle fixed up if you were involved in a bad accident. Always contact your provider to make sure that you are aware of the car repair insurance companies that they have authorized. Going through your own insurance company for car repairs is always advised – that’s why you have insurance in the first place, to provide financial help when your vehicle is damaged!