Does Car Insurance Cover Repairs?
- Does Car Insurance Cover Repairs?
If you’ve ever needed a repair on your vehicle, you may have wondered if your car insurance policy covers repairs. The answer is yes, but also no. Let’s just say it’s complicated.
Car insurance may help you pay for repairs if your car is damaged in an accident or if you have special coverage designated for vehicle repairs. Keep reading to find out more about when car insurance will cover repairs, what insurance for car repairs is, and what maintenance is covered by insurance.
Does Car Insurance Cover Repairs?
Car insurance does cover repairs in some scenarios. If you have a full coverage policy, your insurer will help you to cover the cost of repairs to your vehicle if it’s damaged in an accident or by an “act of god,” like a natural disaster or theft.
If you have a liability-only policy, your car insurance doesn’t exist to help cover repairs to your own vehicle but rather to help you cover the costs of repairs to someone else’s vehicle should you damage it in an accident deemed your fault.
But you can add an additional coverage option to a full coverage car insurance policy to help you pay for big-ticket repairs on newer vehicles. With car repair insurance coverage, you can use your insurance to help you pay for expensive repairs once you meet your deductible. However, car repair insurance comes with a few stipulations that we’ll cover later in this article.
Does Full Coverage Car Insurance Cover Repairs?
Full coverage car insurance covers repairs if your car is damaged in an accident or another named peril. If you have a full coverage auto insurance policy, your policy will include comprehensive and collision coverage.
Collision coverage is a facet of your full coverage policy that kicks in when your vehicle is damaged in an accident and helps you cover the repair cost once you meet your deductible. With collision coverage, it doesn’t matter if you’re at fault in an accident or are the victim; you’re covered no matter what, up to your policy’s limit.
This means that your insurer will cover the cost of the repairs after your deductible until you reach the maximum amount stated on your policy.
Full coverage may help you fix your car if a named peril causes damage. Examples of named perils are:
If your car is damaged from one of these perils, your comprehensive coverage will kick in and help you to pay to fix the damage once you meet your deductible.
Comprehensive coverage differs from collision coverage because it covers your car when you aren’t using it. So, if a tree falls onto your car overnight while your car is in the driveway, your comprehensive coverage will kick in to help you pay for the repairs up to your policy’s limit.
It’s important to note if you have damage to your vehicle due to an accident you caused or something that happened to your car while you weren’t driving it, full coverage is the only coverage that will help you repair the damage to your vehicle. Liability coverage, your other car insurance option, will only kick in to help the victim in an accident pay for their repairs.
If you opt only to have liability coverage, your insurer will only help you cover the cost of fixing another person’s vehicle if it’s damaged by an accident you caused. Your insurer won’t help you cover the cost of damage from hail, theft, or other things covered by comprehensive coverage because liability-only policies don’t include comprehensive coverage.
Does Car Insurance Cover Major Repairs?
Many car insurance policies will only cover major repairs if they’re needed because of an accident. It’s also essential for you to know that every car insurance policy has a maximum of how much your insurer will kick in to help you pay for the repairs to your vehicle.
Once you meet your deductible, meaning you will have to pay some money from your own pocket, your insurer will kick in to cover the amount up to your policy’s limit. Then, you are on the hook for the rest. In many cases, the maximum amount of money your insurer will kick in is the value of your vehicle before your accident.
With a full coverage policy, your insurer will only cover major repairs needed due to an accident. Your full coverage policy includes collision and comprehensive coverages, which will help you cover the cost of major repairs after an accident or accidental damage occurs to your vehicle once you reach your deductible and until you reach your policy’s limit.
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Car Repair Insurance Coverage
Car repair insurance will cover major repairs in events outside of an accident. However, car repair insurance is typically only available as additional coverage to those who insure new cars. New cars generally don’t need major repairs until several years after purchase, so this coverage isn’t absolutely necessary.
Additionally, car repair coverage typically carries a hefty deductible, so you will want to make sure you feel it’s worth it to use this insurance to help you cover the cost of a major repair to your vehicle.
Does Car Insurance Cover Maintenance?
Car insurance doesn’t cover the cost of maintenance. All policyholders are expected to cover the cost of maintenance to their vehicles to ensure they’re as safe as possible. While car insurance doesn’t cover maintenance, general upkeep of your vehicle isn’t too costly. Oil changes, filter replacements, tire alignments, and other maintenance of that nature shouldn’t break the bank.
It’s crucial to stay on top of your vehicle maintenance, even if your insurer won’t help you cover the costs. If you have car repair insurance, your insurer will only help you cover the cost of repairs if they deem your car well-maintained. If you need a repair because a lack of maintenance directly caused the damage, your car repair insurance coverage will reject your claim and won’t help you cover those costs.
Does Car Insurance Pay for Repairs?
Car insurance will help pay for repairs, but it won’t pay for repairs outright. With any insurance, when you file a claim, you must first pay a deductible before receiving funds to cover your claim’s costs. Additionally, your car insurance may not be able to help you pay for the entire amount of the repairs you need. You should always review your auto insurance policy to ensure your deductibles are affordable and your policy limits cover enough in the event of catastrophic damage.
How to Get Insurance to Pay for a Car Repair?
If you meet the criteria for your insurance to help pay for your repair, i.e., you have full coverage or car repair insurance, you will receive payments once you file a claim. Filing a claim differs from situation to situation, so the process will depend on why you need repairs.
If you have full coverage and you need your insurer to help you pay for a repair due to an accident, you will file a claim with the at-fault party’s insurance. If you’re at fault in the accident, or if a named “act of god” causes damage to your vehicle, you will file a claim with your insurer.
If your vehicle is damaged in an accident where the other party is deemed at fault, you will file a claim with the at-fault party’s insurance to receive payments for the repairs on your vehicle.
If you have car repair insurance and would like to file a claim to get some help to pay for a blown engine or a shot transmission, check your policy details or contact your insurer and follow the steps they outline for you.
Insurance for Car Repairs
Car repair insurance is a type of coverage you can add to a full coverage policy to help pay for repairs on a new vehicle. Many insurers will only allow policyholders with new vehicles or those with less than 12,000 miles to add car repair coverage to their policies.
Car repair insurance exists to help you pay for big-ticket repairs on new cars, but if you think about it, new cars generally don’t need big-ticket repairs. Car repair insurance typically carries a significant deductible, which only makes it worth it for repairs or replacements on crucial parts of your vehicle, like the engine or the transmission.
If you like to err on the side of caution, adding car repair insurance to your full coverage policy may be a good idea. Or, if you don’t already have a full coverage policy, it may be in your best interest to shop around for one. Full coverage policies are pricier than liability-only policies, but they’re worth it. Plus, many insurers offer various discounts or programs in which you can enroll to lower your premiums.
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The editorial content on Clovered’s website is meant to be informational material and should not be considered legal advice.