No matter how careful and conscious you are as a driver, accidents can still happen. These untoward incidents–from scratches and dents to car crashes and personal injuries–can affect you and your family financially.
As such, it is important that you get a car insurance policy. But you may ask, “Does car insurance cover repairs?”
You’ll learn that and more in this article:
Does Car Insurance Cover Repairs?
That will depend on the type of your car insurance. For instance, Compulsory Third-Party Liability Insurance or CTPL[1] doesn’t cover damages to your car. So, if you get into an accident, you’ll need to cover the repair costs using your own money.
But if you have a comprehensive car insurance policy, the repair MAY be covered by the insurer. The operative word here is “may,” since the repair will still depend on whether the situation that caused the damage is covered by the insurance policy or not.
What are the Situations Where Car Repairs are Covered by Your Insurance?
Depending on your insurer or the inclusions you choose, below are some of the situations where car repairs may be covered:
Collision
Your car insurance policy will cover body and mechanical damages if you have collision coverage. In some insurance policies, this may fall under Own Damage, which usually covers damages to the car resulting from a collision, regardless of the driver at fault.
If you have an Own Damage cover, repair costs arising from the collision with a post or a barrier may also be covered.
Acts of Nature
A necessary inclusion in a car insurance policy in the Philippines, Acts of Nature or Acts of God covers damages to your car caused by natural calamities. Repair costs will be covered by your insurance if it’s proven that the damage has resulted from events like floods, typhoons,[2] earthquakes, landslides, volcanic eruptions, and others.
Depending on your inclusions, hitting an animal may also be covered by your insurance. However, it should be a wild animal and not a pet.
Vandalism or Similar Incidents
If your car needs repair due to being damaged by vandals and people with malicious intentions, you may turn to your insurance. However, you can only ask for support provided that your policy includes vandalism, riots, and similar incidents.
If you want to expand your coverage, consider getting a civil unrest inclusion.
Mechanical Breakdown
Does car insurance cover repairs in case of a mechanical breakdown? Again, that depends on the inclusions you have in your policy. Usually, if the breakdown is caused by qualified situations and incidents, the insurer will cover the cost of repair.
In case your insurer doesn’t have this type of cover, consider getting roadside assistance inclusions. These are services like emergency towing, arrangement for a rental vehicle, and arrangement for a hotel or accommodation while your car is being fixed.
What are the Repairs Covered by Car Insurance?
Your car insurance policy may not cover repair costs due to the following reasons:
Normal Wear and Tear
If the car gets damaged due to normal use or its old age, your insurance won’t cover the repair costs. As mentioned, the damage must be caused by situations specified in the contract like collision, natural calamities, and others.
Driving Under the Influence
Your insurer won’t cover the repair costs if you’re proven to be driving under the influence of drugs or alcohol.[3] In the similar vein, you may not be able to invoke other inclusions like personal injury.
And once you have a record of driving under the influence, your next insurance premium may become more expensive.
Fraudulent Application
If it’s found out that you’ve intentionally damaged your car, your request for covering the repair costs will be denied. This counts as a fraudulent claim and may come with legal repercussions.
Routine Maintenance
Tire replacements, spark plug replacements, oil changes, and general inspections aren’t covered by car insurance. That’s because these activities are considered routine repairs and maintenance. As such, the responsibility of paying for them falls under you.
Illegal Activities
If your car sustains damages due to being used for a crime or illegal activities, your insurer will reject your request for covering the repair costs.
What is the Process of Securing Claims or Repairs?
If you want the car insurance company to cover your repair costs, follow these steps. Note that each insurer has its own procedures for processing claims for accidents, thefts, Acts of Nature, and others.
Regardless, the steps below should give you a general picture.
Step 1: Contact Your Insurance Company
The first thing you need to do is to contact your insurance company. That way, you’ll be guided on the steps you need to take and documents you need to collate.
At this point, don’t settle in case a third party is involved. That’s because you don’t know the true cost of the repair–only an accredited shop can tell you that. Moreover, accepting settlement with the driver at fault may lead to the rejection of your insurance claim.
Step 2: Collate the Documentary Requirements
Depending on the nature of your claim, you may need to secure the following documents:
- Accomplished insurance claim form
- Police report
- Copy of your driver’s license with official receipt (OR)
- Copy of your vehicle registration certificate (with MVRR number)
- Photos of the damaged parts of your car
- Repair estimate
Step 3: Wait for the Insurer’s Evaluation
Once you’ve submitted all the required documents, the insurance provider will evaluate your case. The result is usually out within two weeks.
Step 4: Get Your LOA or Check
If your claim is approved, you may receive a Letter of Authority (LOA) or check from your insurance provider.
The LOA is proof that your vehicle is qualified for repair at the insurance company’s accredited shop. This is an important document, as the shop won’t start the repair without it.
In some cases, the insurer may release a check that you can then encash for necessary repairs.
Final Thoughts
Does car insurance cover repairs? Technically, yes. But that will depend on the situation that caused the damage. As such, it is important that you get the necessary inclusions. Better yet, talk to your insurance agent to learn more ways to protect yourself financially in case of untoward incidents.
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