Auto insurance is a policy that provides financial protection to the owner of a vehicle in the event of an accident, theft, or damage to the vehicle. Car owners should purchase insurance to protect them from the financial burden of unforeseen events.
An essential aspect of auto insurance is repair coverage. Repairs can be expensive, and having insurance can give car owners peace of mind. Also, with the help of auto insurance, you can get help with car repairs.
In this blog, we will discuss the different types of car repair insurance, the types of repair coverage that car repairs insurance policies typically cover, and the repairs that may not be covered.
Although there are different types of auto insurance, most policies cover auto repair to some degree.
Types of auto insurance
There are different types of auto insurance, each with additional coverage.
Knowing the different types of car insurance can help car owners make informed decisions when choosing a policy.
1. Liability insurance
Liability insurance covers damage or injury to another person or their property. It is mandatory in most states and is designed to protect drivers from financial liability in the event of an accident. Civil liability does not cover the cost of repairing the insured’s vehicle.
2. Collision coverage
Collision coverage covers the cost of repairing the insured’s vehicle in the event of an accident. This coverage is optional, but it can provide peace of mind for car owners. Collision insurance can also cover damage caused by a fleeing driver or when a falling object damages the car.
3. Comprehensive coverage
Comprehensive coverage is a type of insurance that covers damage to the insured’s vehicle that is not caused by accident. This includes theft, vandalism, weather-related damage, and other non-collision damage.
4. Personal Injury Protection (PIP) Insurance
Personal Injury Protection (PIP) insurance covers the medical expenses of drivers and passengers in the event of an accident. It can also cover lost wages and other related costs.
How auto insurance covers repairs
Auto repair insurance policies can cover repairs to the insured’s vehicle in different ways, depending on the type of coverage.
A deductible is an amount the insured must pay out of pocket before the insurance company pays the remaining cost of repairs. Also, there are many questions about whether car insurance covers repairs. Let us understand it with an example.
For example, if the insured has a deductible of $500 and the repair costs $2,000, the insured will pay $500, and the insurance company will cover the remaining $1,500.
Deductibles are determined by the insured when the policy is purchased, and higher deductibles generally result in lower premiums. Thus, if the insured wishes to lower his monthly premiums, he can opt for a higher deductible.
Just to let you know, the deductible only applies to help with car repairs covered under the policy. For example, if the insured only has liability coverage, their policy will not cover repairs to their vehicle, so the deductible will not apply.
Collision Damage Coverage
Collision coverage is a type of automobile insurance that repairs damage to the insured’s vehicle when it collides with another car or object. If the insured has collision coverage, their insurance company will pay for the repairs, less the deductible.
Collision coverage is optional in most states but is generally required if the insured is financing or leasing their vehicle. Also, if the insured is at fault for the collision, their insurance premiums may increase whether or not they have collision coverage.
Full Damage Coverage
Full Damage Coverage Full Damage Coverage is a type of auto insurance that covers repairs to the insured’s vehicle for non-collision damage, such as theft, vandalism, or weather-related damage. The insurance company will pay for the repair minus the deductible if the insured has full coverage.
Like collision insurance, comprehensive coverage is optional in most states but is often required if the insured is financing or leasing their vehicle.
Mechanical Breakdown Coverage
Most car insurance policies do not cover repairs for mechanical breakdowns, such as engine or transmission damage. However, some insurance companies offer automatic breakdown coverage as an option for their policies. This type of insurance can help pay for repairs to mechanical breakdowns not covered by the manufacturer’s warranty.
Mechanical breakdown coverage usually has its deductible, separate from collision deductible or comprehensive coverage.
What repairs are usually not covered by car insurance
Car Insurance Policy Exclusions and Limitations
Car insurance policies often have exclusions and limitations on repair coverage. Here are some standard exclusions:
- Mechanical breakdown: Auto insurance generally does not cover repairs in case of a mechanical breakdown or malfunction. These issues are usually covered by a separate extended warranty or service contract.
- Normal wear and tear: Auto insurance also does not cover repairs related to normal wear and tear. This includes things like worn brake pads or a worn clutch.
- Intentional damage: If you intentionally damage your car, auto insurance will not cover repair costs.
- Race or Off-Road: Car insurance usually won’t cover the repairs if you use your car for racing or off-roading and damage it.
Maintenance and wear repairs
Automobile insurance does not cover maintenance and wear repairs. This is considered the responsibility of the vehicle owner.
Examples of maintenance and wear repairs include oil changes, tire rotations, and brake pad replacements.
Manufacturer’s Warranty and Extended Warranty
A manufacturer’s warranty is usually included with new vehicles and covers certain repairs and replacements for a specified period or mileage. These warranties vary by manufacturer and model but generally cover defects in materials or artistry.
On the other hand, a warranty extension is an additional coverage that can be purchased for a fee.
These warranties may cover repairs beyond the original manufacturer’s warranty. An extended warranty can be a good option for someone who plans to keep their car long and wants to protect themselves from unexpected repair costs. However, it is essential to carefully read and understand the terms and conditions of the extended warranty before purchasing, as it may also have exclusions and limitations on what it covers.
Steps to take after an accident or damage to the car
Take these steps after an accident or damage to the car:
- Assess the situation and make sure everyone is safe.
- Exchange information with other relevant drivers, including name, contact information, insurance information, and license plate number.
- Take pictures of the damage and the scene of the accident.
- Contact your insurance company to report the accident and file a claim.
- Get a repair estimate from a reputable repair shop.
Once you have filed a claim with your insurance company, a mediator will be assigned to your file.
The mediator will investigate the accident and the damage to your car and determine if your policy covers the repairs. If the repair is covered, a mediator will work with you to schedule the repair.
Tips to ensure a smooth claims process:
- Report accidents and file claims promptly.
- Cooperate fully with insurance companies and provide any information they request.
- Keep detailed records of all correspondence with insurance companies and repair shops.
- Choose a reputable repair shop and get a written estimate.
In this blog, we discussed insurance for car repairs and the kind of repairs not usually covered by car insurance, including mechanical breakdowns, normal wear and tear, intentional damage, and racing or off-roading. We also discussed the importance of manufacturer and extended warranties to cover repairs beyond what car insurance usually covers. Additionally, we covered the steps to take after an accident or damage to the car.
Car insurance that covers repairs is a must to protect you financially in the event of an accident or damage to your car. Without insurance, you may have to pay for repairs out of pocket, which can be very expensive. Choosing the right insurance policy that covers repairs and taking the necessary steps to file a claim can make the process smoother and less stressful. It’s also essential to maintain your car regularly to avoid problems and reduce the risk of needing repairs in the first place.