You recently suffered a traffic accident, causing severe damage to your vehicle. Your question is the obvious one: Will my auto insurance policy pay to repair this damage?
The answer depends on the type of auto insurance you have.
States typically require that all motorists purchase liability auto insurance. This type of insurance covers the costs of repairing the dings that you cause to the vehicles driven by others or the property owned by others. If all you pay for is liability insurance, your insurance company will not pay for the repairs needed to your own vehicle following an accident.
However, if you also pay for collision coverage, then your insurer should pay for the repairs needed to your car. Collision coverage, after all, is designed to pay to fix your car if it is damaged in an accident that you caused.
You might also pay for comprehensive auto insurance coverage. This pays for repairs needed to your vehicle because of fire, road debris, hail, vandalism or other issues. It will also cover the cost of replacing your vehicle should a thief steal it.
Most states don’t require motorists to pay for comprehensive and collision coverage. However, depending on the age and condition of your vehicle, you might decide that investing in this additional coverage makes sense. If you own an expensive car, the protection that collision coverage offers might outweigh the negatives of the higher insurance rates that come with this coverage.
To make sure that you are paying the lowest possible rates for your insurance coverage — whether you’re investing in only liability or adding both comprehensive and collision — you need to compare insurance rates online. Today, you can enter your basic information on a host of Web sites to instantly bring up quotes from competing insurers. This is the most effective way to make sure that you’re not overpaying for the insurance coverage that you need.