Auto Insurance: Scratches Covered?

Whether auto insurance covers scratches depends on the cause and the coverage you have. If you have comprehensive or collision coverage, your insurance will likely cover scratches caused by a covered peril in your policy, like a car accident or vandalism. However, it may not be worth filing a claim if the cost of repairs is less than your deductible. Additionally, scratches caused by general wear and tear, negligence, or a violation of your car insurance policy may not be covered. It's important to consider the cost of repairs, your deductible, and the potential increase in your premiums before deciding to file a claim.

Comprehensive coverage

However, it's important to note that comprehensive coverage does have a deductible, which is typically between $100 and $1,000. This means that if the cost of repairing scratches is less than your deductible, it may not be worth filing a claim, as it could cost less to pay for the repairs out of pocket. Additionally, filing a claim may lead to an increase in your insurance premium.

When deciding whether to file a claim for scratches, consider the severity of the damage, the cost of repairs, your deductible amount, and whether the increase in your premium justifies the claim.

Collision coverage

The cost of collision coverage varies depending on the insurer, but it typically ranges from $290 per year on average. Collision coverage comes with a deductible, which is an amount you are responsible for paying if you file a claim. Deductibles can range from $100 to $2,000, depending on the insurer. If the repair costs are less than your deductible, it may make more sense to pay for the damage out of pocket.

It's important to note that collision coverage only applies to damage caused by collisions and does not cover cosmetic damage such as scratches or dents resulting from general wear and tear. Additionally, there may be time frames for filing a claim, so the insurer may not pay for damage that occurred years ago.

When to report scratches to the police

If your car has been scratched, you may want to file a police report, especially if:

• Another vehicle was involved in the collision.
• Your parked car was significantly damaged and you don't know what happened.
• You suspect your car was scratched as an act of vandalism.
• You plan to file an insurance claim for the damages.

If you aren't in danger, call the non-emergency number for the local police. Many police departments will also allow you to file an incident report yourself using an online form.

If your car was damaged while parked in a lot or garage, or on a busy street, there may be security cameras around that captured the incident. You may be able to ask to see the footage if the damage was significant or if the police suspect vandalism.

Having a police report of the incident will serve as important evidence for your insurance claim. However, it is worth noting that a police report is not always necessary to file an insurance claim unless your car was vandalised.

In some cases, scratches are merely cosmetic damage to your car. If you have very light scratches from a tree branch or your car brushing up against a wall, they won't cause a problem with how your car functions. Deeper scratches, however, may need repair to prevent rusting.

Insurance will often cover scratches, but you may decide you don't want to file an insurance claim. If there was no chance that you were injured, and the cost of repairing the scratches is less than your deductible, it may make more sense to handle any repairs yourself.

If you do want to file an insurance claim, the cause of the scratch makes a difference in whether your car insurance carrier will cover the damages. Scratches caused by different factors are covered by different types of coverage. If you don't have the right type of insurance for the cause of the scratch, your claim may be rejected.

Some types of scratches are covered by comprehensive coverage, while others are covered by collision coverage. Comprehensive coverage is for damage that isn't caused by a collision or your car rolling. Collision coverage is for damage to your car caused by hitting another object, which could be another car or an inanimate object such as a parking garage wall or a mailbox.

Is it worth making a claim?

Whether you should make a car insurance claim depends on several factors. Firstly, consider the nature of the incident. If the damage is only to your car and is minimal, such as a small scratch, it may not be worth claiming as it could be cheaper to pay for repairs out of pocket. This is because both comprehensive and collision coverage usually require you to pay a deductible, which is typically set at $500 or $1000, before your coverage kicks in. If the price of your deductible exceeds the price of repairs, it is more cost-effective to pay out of pocket. Additionally, filing a claim can lead to a rate increase, especially if the damage was your fault.

However, if the damage is substantial and costly, it may be worth filing a claim. For example, if your vehicle is keyed and suffers $3000 worth of damage, it makes sense to file a claim if your comprehensive car insurance deductible is $500. Comprehensive claims don't raise your premiums as much as collision claims do. In this case, a comprehensive claim in 2018 raised insurance rates by 4.35%, or $32, over a six-month policy.

Another factor to consider is whether you have a No Claims Discount. Weigh up how much you currently save on your premiums by having a no-claims bonus and calculate whether it is worth losing this discount by making a claim. Additionally, consider the hassle of claiming. Claims processes can be extensive and complicated, so you must decide whether doing so is of value to you.

It is also important to notify your insurer of any incident, even if you don't intend to make a claim. This is because your policy could become void if you fail to report an accident.

Deductibles

When deciding whether to file a car insurance claim for scratches, it's important to consider the cost of repairs against your deductible. Comprehensive and collision coverage both require you to pay a deductible, which is usually set at $500 or $1,000, before your coverage can kick in. If the price of repairs is less than your deductible, it's generally more cost-effective to pay out of pocket, especially if the scratches are the only damage.

For example, if a shopping cart bumps your car and leaves a scratch with a $100 repair estimate, it's not worth filing a claim if your deductible is $500. However, if the damage amounts to a more significant repair cost, like $1,000, you may want to file a claim because it exceeds your deductible.

Additionally, filing a claim can lead to a rate increase, especially if the damage was your fault. So, if the costs of repairing the scratches aren't much higher than your deductible, it might still be more economical to pay out of pocket to avoid a rate increase and a claim on your record.

It's also worth noting that if you have a scratch on your car due to an accident with another vehicle, you should report it to your insurance company. Not doing so may violate the terms of your contract and put your coverage at risk. It also makes it more challenging for your insurance company to defend you if the other party claims you are at fault and seeks damages.

Frequently asked questions