We share answers to important car insurance questions.
Post-Accident Report
If you intend to file an insurance claim, you will need to file a police report. It’s also recommended in case more than one driver was involved in the accident as proof of what happened and whether anyone was injured.
Totaled or Not
If the car costs more to repair than its value, your car is totaled. Several states employ specific formulas to arrive at this result while others check if the repair value exceeds a certain percentage of the car’s value.
Post-Total-Loss Accident
After a total-loss accident, contact your insurance agent and locate your title. Then check with your agent about what else you can do to speed up the claims process.
Single-Car Accident
Single-car accidents are usually considered to be at-fault accidents. If you file a claim, expect to be given an at-fault surcharge whenever you renew the car’s insurance.
At-Fault Claim Payment
Whether you have to pay out of pocket for an at-fault claim or not depends on the cost of the damage, your deductible, and the at-fault accident surcharge amount. Compare these numbers and then decide whether it’s worth filing a claim or not.
Multiple Insurance Claims
Filing multiple insurance claims is never good. Most insurance carriers tend to nonrenew your policy for two at-fault accidents by the same driver in a three-year period. They also add a surcharge for comprehensive claims if three or more are filed in a three year period.
Accident in a Borrowed Car
If there’s an insurance policy that lists the vehicle, it will cover the vehicle’s damages. Liability cover is also available in this case, but if the limit is too low, then the excess is taken from the driver’s insurance policy. Surcharges for at-fault accidents are added to the car owner’s insurance policy.
Pay for Repairs After an Insurance Claim
If you’ve bought the car on loan or intend to continue with full coverage, you need to get the repairs completed. If either of those doesn’t apply, it’s your decision whether to complete repairs or not.
Replacement Parts
Whether replacement parts are covered by insurance or not depends on the details of your insurance policy. If your insurance explicitly covers OEM parts, then replacement parts will come from the original equipment manufacturer. Otherwise, you’re likely to get aftermarket parts, which may be just as good as OEM parts but less expensive.
