Ever wondered if your car insurance pays for your car’s fixes? The truth is, it’s a bit tricky. Sometimes it does, sometimes it doesn’t.
Your car insurance might cover repair costs if your car gets damaged in a crash. Or, if you’ve chosen special coverage just for car repairs.
Now you might be thinking: When exactly does car insurance cover repairs? What does ‘insurance for car repairs’ really mean? And what kind of regular upkeep does insurance pay for?
Don’t worry, we’re here to break down all these confusing bits for you in a simple, easy-to-understand way. Stay tuned as we talk more about car insurance and repairs.
Does Car Insurance Cover Repairs?
Car insurance can sometimes pay for your car repairs. For example, suppose you’ve gone for full coverage.
In that case, your insurance company will help pay for fixing your car if it’s damaged in an accident or by unexpected events like a theft or natural disaster.
If your coverage is only liability, your car insurance won’t cover the costs of repairs for your own car. Instead, it helps you pay for fixing other people’s cars if you cause an accident.
However, you can choose to add more coverage to a full coverage policy. This can be handy for pricey repairs on new cars. This is called car repair insurance.
You can use it to pay for costly repairs after you’ve paid your deductible. But remember, there are certain conditions to this coverage. We’ll talk about these later.
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Does Complete Coverage Car Insurance Pay for Repairs?
Yes, complete coverage car insurance will help with repair costs if your car is damaged in an accident or other specific events. This type of policy has both comprehensive and collision coverage.
Collision Coverage
Collision coverage is part of your complete coverage. It pays when your car is damaged in an accident.
It pays for repair costs after you’ve paid your deductible, no matter who caused the accident. It covers you up to a certain amount, which is your policy’s limit.
This means your insurance company will pay for the repair costs after your deductible until you reach the top limit on your policy.
Comprehensive coverage
Comprehensive coverage is useful when specific events damage your car. Examples include:
- Theft
- Certain natural disasters, like hail
- Unexpected events, like a tree limb falling
If your car is damaged by any of these events, your comprehensive coverage will start paying after you’ve met your deductible.
Comprehensive coverage is different from collision because it covers your car even when you’re not driving. So, if a tree falls on your car when it’s parked in your driveway, your comprehensive coverage will help pay for repairs up to your policy’s limit.
Liability Coverage
Remember, if your car is damaged because of an accident you caused, or if something happens to it while it’s parked, only complete coverage can help with repair costs.
Liability coverage, which is the other option, will only help pay for the other person’s repairs if you cause an accident.
If you choose to only have liability coverage, your insurance company will only help pay to fix the other person’s car if you cause the accident.
Your insurance won’t help pay for damage from hail, theft, or other events covered by comprehensive coverage because liability-only policies don’t have comprehensive coverage.
Does Car Insurance Cover Big Repairs?
Typically, car insurance only covers big repairs if they’re needed because of an accident. Also, don’t forget that each car insurance policy has a maximum cap. This is the highest amount your insurance company will shell out for repairs.
Once you’ve paid your deductible, your insurance company will begin covering costs up to your policy’s maximum limit. Any costs beyond that will be your responsibility. Generally, the maximum amount your insurance company is willing to cover is equivalent to your car’s value prior to the accident.
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Will insurance help for non-accident repairs?
If your car gets damaged in ways other than a crash, comprehensive insurance might help pay for repairs. This type of insurance usually covers damage from things like:
- Fires
- Theft
- Vandalism
- Natural disasters
- Things falling on your car
- Damage from animals
So, if a tree falls on your car or you hit an animal, comprehensive insurance could help with the repair costs. Just like with collision insurance, comprehensive insurance is optional. Remember, you have to pay the deductible first, and there’s a limit to how much the insurance will cover.
Will insurance cover a rental if my car breaks down?
If your car stops working, car insurance won’t pay for a rental car. But, there’s something called rental reimbursement coverage that can help.
This pays for a rental car or other transport, like a bus or train, after a covered claim.
So, if your car is being fixed after a crash, this coverage can help with the cost of getting another car or using public transportation.
Sometimes people call this rental car coverage. It’s optional and usually has a maximum amount it will pay.