It’s all about to be safe & secure after the Automobile insurance starts. A long-term good driving history is needed to get best price a car insurance.
- 1 Automobile Fixing After Accident by Insurance Companies vs. Personal Expenses
- 2 UNDERSTAND THE COVERAGE FOR YOUR DAMAGE
- 3 Bodily Injury Liability
- 4 Property Damage Liability
- 5 Personal Injury Protection or Medical Payments
- 6 Collision
- 7 Comprehensive
- 8 THE TIMES YOU SHOULDN’T FILE INSURANCE CLAIM
- 9 When the Other Party Is Proven Liable For Damage
- 10 When fixing damage cost is lower than the No-Claim Bonus
- 11 ACCIDENTAL DAMAGE FIXING BY INSURANCE
- 12 COMPANIES VS. PERSONAL EXPENSES
- 13 You Save on Automobile Insurance Premiums
- 14 Your Trusted Mechanic
- 15 You May End up Paying Huge Amount
- 16 Advantages and Disadvantages of Auto Repair Insurance Coverage
- 17 No Need to Pay Huge Amount Upfront
- 18 No Need to Find Qualified Mechanic
- 19 Easy Claim Process
- 20 Multiple Repairs Not Covered Under Policies
- 21 Considerations
- 22 Also, Read More
Automobile Fixing After Accident by Insurance Companies vs. Personal Expenses
Even the safest drivers can have accidents. And once your vehicle is damaged in the incident, you have no other option but to get it repaired and you have two ways available for it – handling it yourself or claiming insurance cover. While dealing with the insurance adjusters may seem a stress full task to many people than the accident itself, some vehicle owners prefer not taking the claim.
Both the methods have their own pros and cons, yet it is important that we understand when the right time is to get an insurance claim and what type of damages are covered under the automobile insurance policies.
UNDERSTAND THE COVERAGE FOR YOUR DAMAGE
In the U.S., different mandates are available for automobile insurance in different states. And the basic automobile insurance policies consist of six types of coverage that you may need to know about:
Bodily Injury Liability
This type of insurance coverage applies to injuries that you (designated driver or policyholder) cause to someone else. If you have mentioned the family members in the policy when buying one, they are also covered when driving someone else’s car with their permission. Having a liability insurance is a must for every car driver as you may be sued for a large sum of money you are involved in a serious accident.
The recommendations here are that you should go for more than the state-required minimum liability insurance to protect your assets such as your home and savings.
Property Damage Liability
As the name suggests, this type of coverage is paid for the damage you may cause to someone else’s property during an automobile accident. In most cases, it is the damage to someone’s car, but other type of property damages includes the damage to telephone poles, lamp posts, fences, buildings or other structures your car hit.
Personal Injury Protection or Medical Payments
Sometimes you may be fortunate to go unharmed physically during the accident, but you are not always lucky. The personal injury takes care of the expenses for the treatment of injuries to the driver and passengers of the policyholder’s car. Also it covers the replacing services, medical bills etc. It may also cover funeral costs.
If your vehicle is damaged due to a collision with another car, the damage will be covered in the policy. The collision damage cover also covers damage caused by potholes. The collision cover depends upon the worth of your vehicle. For example, if your car is older, it may not be worth carrying collision coverage on it.
The comprehensive coverage reimburses you for the losses due to damage caused by something other than a collision or theft. For example, comprehensive covers events such as falling objects, fire, missiles, explosion, flood, earthquake, windstorm, vandalism, riot, etc. It will also pay to repair your windshield if it is cracked or shattered.
THE TIMES YOU SHOULDN’T FILE INSURANCE CLAIM
After the automobile accident, it is obvious that you will want to get ahold of your insurance company and get the claims settled as soon as possible. We all understand that the major damages should be repaired with the car insurance policy, but there are times when we should avoid claiming the insurance policy. Let’s see when not claiming an automobile insurance is a better option than making a claim.
When the Other Party Is Proven Liable For Damage
This option is subject to certain situations. For example, if you have already taken three claim-free year and are expecting NCB benefits, but your car is involved in a mishap. You have two options in such conditions – either you pay fixing cost or file an insurance claim.
If the Motor Accident Claims Tribunal proves that the accident occurred due to the fault of other vehicle’s driver, you can enjoy your no-claim benefit as the other party will be liable to pay for the damages to your car.
When fixing damage cost is lower than the No-Claim Bonus
The No-Claim Bonus (NCB) is available for the policyholders who have a good track record and have not claimed their car insurance in a while. It offers a discount of up to 50 per cent on your next motor insurance premium.
Imagine you have a hatchback and are paying an annual premium of $1,000 for which the own damage premium is around $800. If you don’t get claim for car insurance in the first year, you get NCB of 20 per cent, which works out to $160. So, if you have a mishap and the cost to fix the damage goes above $160, it is advisable that you do not claim the insurance.
This is the reason that most policyholders prefer not claiming insurance cover for minor damages as once insurance claim is made, the NCB benefit goes back to nil. And, your next premium for car insurance will be higher, since it will not include the amount of NCB that time.
ACCIDENTAL DAMAGE FIXING BY INSURANCE
COMPANIES VS. PERSONAL EXPENSES
Before deciding between claiming the automobile insurance cover or using personal funds to fix the damage, you may want to know about the “Pros & Cons” of the two choices.
Advantages and Disadvantages of Do-It-Yourself Auto Repair
You Save on Automobile Insurance Premiums
The biggest advantage of considering to fix the damages on yourself is that you save a lot on the next car insurance premiums you will pay. As described above, the NCB makes a great difference in determining your insurance premiums.
Your Trusted Mechanic
Some people don’t trust on just any mechanic when it comes to repairing their favorite car. And because not all the garage accept car insurance policies, it is beneficial to handle car repairs yourself from your own trusted mechanic. The repair shops recommended by the policy may or may not be the best shop for the job.
You May End up Paying Huge Amount
One of the most common drawbacks with handling the car damage fixing yourself is the potentially expensive cost of some type of major repairs. For example, if your vehicle has had a huge collision with a tree and requires major repair, you will be required to pay the total repair cost all at once. Also, you will be responsible to look for the best garage yourself. On the other hands, if you are going to claim for insurance cover, fixing cost will be paid by the insurer from their recommended mechanic, which are usually the best ones and certified.
Advantages and Disadvantages of Auto Repair Insurance Coverage
No Need to Pay Huge Amount Upfront
One of the most convenient things about the automobile insurance policies is that you need to not to pay a lot of money upfront when you are involved with an accident. Getting an extended warranty is additional benefit for car owners as the cost of the warranty is usually rolled into the car loan which results in a slight increase in monthly car payment.
No Need to Find Qualified Mechanic
If you are not in a condition to look for the best suitable and qualified mechanic to fix your vehicle damages, you’ll want to take the insurance claim as it can help you from the stress of searching for a qualified mechanic or repair shop. Most automobile insurance companies provide a list of certified shops where you can take your vehicle for repair.
Easy Claim Process
Whether you are planning to file with your own insurance company or against someone else’s policy, you need to go through the insurance claim process that is easier when filing as you already know your agent and the terms of your policy. You just need to make a call to your insurer and they will describe you about the claim process that may be easier than handling the whole damage repair process yourself.
Multiple Repairs Not Covered Under Policies
One of the biggest problem when considering claiming car insurance is that many auto repair insurance policies do not cover different types of repairs. You must go through the “Terms & Policies” before you go for an insurance policy to cover from any damage. It is important that you purchase a good policy after conducting research about multiple insurance companies.
If your vehicle has gone through minor damage and repaid costs are quite less, keep in mind that you may be better off not filing an insurance claim with the insurer. Your decision should depend upon the situation. For example, if you are comfortable with paying the repair costs and don’t mind doing the repairs yourself, then you need not to go for the insurance claims. But, if the damage is huge and you don’t want to spend time on looking for the certified mechanics or handle the repairs yourself, then claiming the automobile insurance cover may be the best option for you.
Think carefully about all the factors and make final decision according to your circumstances. If you are injured in the accident, make sure to talk to your personal injury attorney first.
Also, Read More