Auto Insurance: Can You Claim For Old Damage?

Auto insurance generally does not cover pre-existing damage to a vehicle. This includes any damage that occurred before the policy start date, even if it was not the policyholder who made the claim. In some cases, pre-existing damage can prevent a policyholder from receiving a full claim payout. When filing a claim, it is important to be upfront with the insurance company about any pre-existing damage to avoid being accused of insurance fraud.

Pre-existing damage will not be covered by auto insurance

Pre-existing damage refers to any damage sustained by a vehicle before the purchase of an insurance policy. This includes any previous damage that has not been repaired, as well as normal wear and tear.

In most cases, auto insurance policies do not cover pre-existing damage. Insurance companies are not required to cover damages that occurred before the policy was taken out, and they often lack the necessary facts to determine the validity of a claim for pre-existing damage. Additionally, covering pre-existing damage could significantly increase an insurer's liability and, by extension, the average policy rates.

Insurers can use pre-existing damage to decline a future claim or even a policy offer. They can also use information from the application process against the policyholder, potentially denying a claim. Pre-existing damage can also make it difficult to purchase an insurance policy with comprehensive or collision coverage.

While pre-existing damage may not prevent a driver from acquiring liability insurance, it can result in higher premium rates. It is important to be upfront with insurance companies about any pre-existing damage to avoid unnecessary losses.

Liability insurance can be purchased even with pre-existing damage

However, it is important to note that pre-existing damage can impact your ability to purchase full coverage insurance. Full coverage insurance includes collision and comprehensive coverage, which protect against damage to your own vehicle. If you are purchasing full coverage insurance, the insurance company will likely require an inspection of your vehicle to assess its condition and structural integrity. This is to ensure that they are not held liable for any pre-existing damage.

In some states, such as New York, Massachusetts, New Jersey, Rhode Island, and Florida, a CARCO inspection is required before purchasing full coverage insurance. This inspection includes a physical inspection of the vehicle, as well as official photos that are sent to the insurance provider. The insurance company will use the findings of the inspection to determine future claims payouts and coverage levels.

If you do not live in a state that requires a CARCO inspection, minor pre-existing damage may not prevent you from purchasing full coverage insurance. However, insurance providers can still discover information about your vehicle's history through its Vehicle Identification Number (VIN). The VIN will track any previous accidents, insurance claims, and other relevant information.

It is important to be upfront with your insurance company about any pre-existing damage. Failing to disclose this information can lead to severe consequences, such as policy cancellation or claim denial. Additionally, pre-existing damage can impact your ability to receive a full claim payout for future damage.

Comprehensive insurance covers non-accident-related damage

Auto insurance typically does not cover pre-existing damage, which refers to any damage that occurred before the policy start date. This includes previous damages that were not repaired or normal wear and tear. If the pre-existing damage is extensive, you may be disqualified from carrying physical coverage on your vehicle, including comprehensive and collision coverages.

However, comprehensive insurance is a type of auto insurance that covers damage to your vehicle from causes other than collisions. This includes damage from theft, vandalism, fire, weather, natural disasters, accidents with animals, and falling objects. Comprehensive insurance is optional and usually has a deductible that you must pay before the coverage starts. It is often required by lenders if you are leasing or financing a vehicle.

While comprehensive insurance covers non-accident-related damage, it's important to note that it does not cover normal wear and tear or damage caused by potholes. Additionally, it will not cover any personal items stolen from your car.

Comprehensive insurance is a valuable option for those seeking protection against unforeseen events and non-collision-related damage to their vehicles. It provides peace of mind and financial protection in the event of unexpected incidents.

Collision insurance covers repairs after accidents

In general, auto insurance policies do not cover pre-existing damage to a vehicle. This includes any damage that occurred before the policy start date. However, liability insurance, which is required in most states, does not take into account the condition of your vehicle and will usually be available regardless of pre-existing damage.

If you want full coverage, which includes collision insurance, pre-existing damage may prevent you from purchasing it. Collision insurance covers repairs to your vehicle after accidents involving a collision with another vehicle or object, such as a tree or guardrail. It is typically an optional coverage that you will have to pay extra for, but it is required by lenders or leasing companies if you have a car loan or lease.

In the event of an accident, collision insurance will pay to repair your car or replace it if it is totaled, minus your deductible. It is important to note that collision insurance does not cover damage to another person's car or repairs to an object you crash into. It also does not cover damage related to weather conditions or natural disasters.

If you want coverage for non-accident-related repairs, such as theft, vandalism, or natural disasters, you will need to purchase comprehensive insurance. Comprehensive insurance covers non-accident events such as vehicle theft, floods, hail, or storms. It is usually sold together with collision insurance and is typically required if you have a car loan or lease.

Insurance adjusters can tell how old the damage is

Insurance adjusters are responsible for assessing the damage to a vehicle to determine how much the insurance company should pay out for losses. Due to their experience and training, they can identify which damages are old and which are new. To do this, they will use a number of tactics, including a visual inspection of the vehicle and requesting an estimate from a certified repair shop.

When inspecting the vehicle, adjusters will look for evidence of old repairs and damage, such as sanding, rust, or mismatched paint. They will also check for signs of a dark history, such as mismatched upholstery, which could indicate the vehicle was damaged by floodwater. They will also look at the vehicle's history to see if it has been in previous accidents, or if it has been sold as junk.

In addition to a physical inspection, adjusters will also use photographs to help determine the age of the damage. Photos from different angles can give an idea of whether a dent was present before a collision. They will also check if the vehicle is used, as this could indicate that the damage was pre-existing when the car was purchased.

By using a combination of physical inspection, photographic evidence, and vehicle history, insurance adjusters can accurately determine the age of vehicle damage and ensure that only accident-related repairs are covered by the insurance company.

Frequently asked questions