Alyssa Lane
Whether or not auto insurance covers self-inflicted damage depends on the type of coverage you have. If you have collision and/or comprehensive coverage, your insurance company may pay for the damage, minus your deductible. However, if you only have a liability-only policy, which is legally required, damage to your own car won't be covered. While collision and comprehensive coverage are not required by law, you may have been required to carry both if you leased or financed your car. It's worth noting that even with full coverage, insurance won't pay for damage caused by your own negligence, such as failing to close your windows before it rained. Additionally, self-inflicted damage caused intentionally or while breaking the law is typically not covered by insurance.
What You'll Learn
Comprehensive and collision insurance
Comprehensive Insurance
Comprehensive insurance covers non-collision-related damage to your vehicle. This includes damage from fire, hail, vandalism, theft, falling trees, and weather damage. It also covers damage caused by animals. For example, if a tree falls on your car, or it is damaged by fire or a natural disaster, comprehensive insurance will cover the cost of repairs or replacement. Comprehensive insurance is particularly useful if you live in an area with a high risk of damage from fallen branches or animals.
Collision Insurance
Collision insurance covers damage to your vehicle resulting from a collision with another vehicle or object. This includes accidents with other vehicles, regardless of fault, single-car rollovers, and accidents with stationary objects like road signs and guardrails. For instance, if you need to replace your bumper after rear-ending another car, collision insurance will cover the cost. If you live in an area with high traffic volume and are more likely to get into an accident, collision insurance is a must-have.
Exclusions and Limitations
It is important to note that self-inflicted damage to your vehicle may not always be covered by comprehensive or collision insurance. Insurance companies may deny claims if the damage was purposeful or if it occurred while breaking the law, such as driving under the influence. Additionally, coverage limits for comprehensive and collision insurance are determined by the value of your vehicle and the deductible amounts you select. In the event that your vehicle is totalled, the maximum payout will be the actual cash value of your vehicle, minus your deductible.
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Self-inflicted damage
Comprehensive insurance covers non-collision-related damage, such as vandalism, fire, explosions, falling objects, weather-related damage, damage caused by animals, and theft. Collision insurance, on the other hand, covers damage to your car from a collision, regardless of fault.
However, there are some instances where self-inflicted damage may not be covered by your insurance. If you intentionally damage your car, such as in a fit of anger or for insurance fraud, your insurance company will not cover the damage. Additionally, if you were breaking the law when the damage occurred, such as driving under the influence or without a valid license, your claim may be denied. It's important to review your policy carefully to understand any specific exclusions or limitations.
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Liability insurance
If you have liability insurance and you hit another car that is also covered by liability insurance, the other person's insurer will process the claim. However, don't count on a quick payment as the insurer might want to investigate the accident to determine that their customer was at fault. If the other driver doesn't have enough insurance to cover the damage they caused, you could sue them for the remainder, but if they don't have any assets, it may not be worth it. In this case, you could turn to your own underinsured motorist coverage if you have it.
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Deductibles
When it comes to auto insurance, a deductible is the amount you pay "out of pocket" when filing a claim with your insurer. In other words, it is the amount you agree to pay to repair or replace your vehicle following covered damage. After you pay the deductible amount, your insurer will cover the remaining cost. For example, if you have $3,000 in damage with a deductible of $500, your insurer will pay $2,500, and you will be responsible for the remaining $500.
The liability portion of your car insurance policy does not have a deductible. However, if you have comprehensive coverage, collision coverage, or both, each would have its own deductible. These deductibles are applied separately. For instance, if your at-fault accident results in $5,000 worth of damage to your vehicle and you have a $500 collision deductible, the insurance company would cover up to $4,500, and you would be responsible for the remaining $500 deductible.
Different coverage types may have different deductible options, and some coverage types, like liability, have no deductible. Comprehensive coverage, collision coverage, uninsured motorist property damage, and personal injury protection are some of the coverages that typically include deductibles.
When choosing a deductible, it is important to consider what you can afford to pay if your car is damaged. Selecting a higher deductible will reduce your premium, but it should be an amount that you can comfortably afford with little notice. On the other hand, a lower deductible means a higher insurance rate, but you will pay less out of pocket in the event of a claim.
It is also worth noting that some insurers offer disappearing deductible programs, where your deductible amount decreases or is waived if you go a certain amount of time without a claim or violation.
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Single-vehicle accidents
If you are found at fault for a single-vehicle accident, you may still be able to make an insurance claim depending on your coverage. Personal injury protection (PIP) or medical payments ("MedPay") coverage can pay for treatment of your injuries and lost income, regardless of the accident cause. Collision coverage will pay to get your car fixed or replaced, even if you caused the accident.
It's important to note that if you decide to file a claim, you will need to pay your deductible, and your premium will likely increase. Therefore, if the damage is minor and the cost to repair is less than your deductible, it may not be worth filing a claim.
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Frequently asked questions
Yes, as long as you have collision and/or comprehensive coverage. If you only have liability insurance, damage that you cause to your own car won't be covered.
Liability insurance covers damage to other people and their property. Collision insurance covers damage to your car resulting from an accident, such as colliding with another vehicle or an object. Comprehensive insurance covers damage caused by events outside your control, like vandalism, falling objects, natural disasters, theft, and wildlife.
Yes, it doesn't matter if the accident occurs on private property or a public road. However, if the accident occurs on private property, you won't need to call the police or file a police report.
No, insurance companies may deny claims if the damage was caused while breaking the law, such as driving under the influence or without a valid license.
