Does California Liability Auto Insurance Covers Car Repairs?
Reader’s Question:
Hi there. I got in a bit of trouble last night and bumped the car into a tree. Will my automobile insurance pay for the repairs to my car? How can I ask them to pay? I have liability insurance.
George
Long Beach, CA
Hi George, I hope you are all right after your accident. First of all, you will need to look at your automobile insurance papers or call your agent in California to find out if you are covered for the damage to your car. If you bought just the minimum automobile insurance required by the state, I’m afraid you might not have the right coverage as most states only require liability insurance which will pay for damages to other people or property.
In order for your insurance company to pay for the damages to your vehicle, you must have first signed up for collision insurance. However, they will not pay for the full amount of the bill. You will still have to cough up your share of the deductibles before they will pay for their share of the bill. Before you file a claim, first evaluate whether you actually need to. If the damage is minimal, and you can afford to pay for it, it may be better to take care of the damages yourself. If you do file a claim, know that this will be placed into your record and may affect your automobile insurance rates in the future. If you still wish to proceed, I suggest you ask your agent about your automobile insurance companies’ process for filing a claim. This will most likely involve some paperwork where you will be asked for details of the accident.
If My Friend Wrecks My Car Will My Insurance Policy Cover It?
Reader question:
What happens when a friend takes my car out and wrecks it? Will my car insurance claim be denied?
Max in Fresno California
Thank you for your question, Max.
It really depends on the circumstances of his borrowing the car and wrecking it. These days, car insurance policies are very extended. For example, even if their names are not on your California car insurance policy, other family members in your house will be covered if they drive your car. Another group of people that will be covered under your policy is pretty much anyone to whom you give permission to drive it, or has a decent reason to believe that you would have given them permission.
This can be kind of troubling sometimes. For example, when you didn’t give someone permission then at times it is very hard to prove that this is the case, especially if they are a good friend or relative. I would never let my brother drive my car, but if he did somehow and got into a car accident, then my car insurance company would consider it to have been consented to. This means that his at fault crash would affect my auto insurance premium in the future. If they find that I did not give my consent, or wouldn’t have if asked, then while the damages to the vehicle will be covered, the driver will not be and my future premiums will not be affected.
So, yes, if your friend takes your car out for a spin and gets into an accident, then your car insurance policy will cover their injuries as well as the damage to your car. You still need to be the one to file a claim, though, and pay your deductibles. All of the responsibility for that sort of thing depends on you, since they have not signed your policy and everything is required from you.
Now, if your friend wrecks your car, then your own insurance policy will be the first to kick in. However, if they have their own policy, then once your own insurance coverage runs out, it will kick in as well.
Cheers,
Fashun Guadarrama.
California Car Insurance Law – Do I Have To File a Claim?
California car insurance law doesn’t mandate that you file a claim after every accident. It’s entirely up to you to do so or not. Some people choose not to after some accidents because they don’t want the negative spot on their car insurance report, but you have to make the correct decision so that you don’t pay for it in the future. Most car insurance companies want you to at least tell them about an accident, even if you don’t file a claim, but in some cases that may not be advisable.
- Deductible.
Here’s the first test of whether or not you need to file a car insurance claim. There’s no California car insurance law about deductibles, but most companies have one for their extra insurance coverages, that is, not for liability but for all the rest. If your repairs are going to cost less than your claim, then there’s no reason for you to file a claim. However, if the repairs will cost more, then you should go ahead and file a claim.
Try to get an estimate from a reliable body shop before you make the decision about the price. If you aren’t sure about how much the repairs will cost, then you can’t make a valid decision about whether to file a claim or not.
- Other spots on your record?
Sometimes when you have a car accident, you’ll already have something on your car insurance record that makes you less than desirable, or high risk. If you already have a previous ticket for a moving violation, or if you have gotten into an at fault accident before, then you should check the law with the California department of insurance to see when a car insurance is able to decide on nonrenewal for you.
- Anybody there?
If you get injured, then you absolutely must make a car insurance claim. You never know what complications could happen, and even if you have health insurance, it is often the case that medical insurance will not elp you with things such as lost wages. If you need help with these things, then you will need to make a car insurance claim.
If there is another driver involved in the accident, then it is a good idea to at least tell your car insurance company. California car insurance law allows claimants to sue the other driver, so if the other driver comes up with a lawsuit and you haven’t said a word, then you’ll be in trouble.
I Need Help Understanding My Auto Insurance Policy
Reader question:
Where can I get some help in reading my California auto insurance policy?
Aaron
You can get it right here, Aaron.
Plenty of people find their auto insurance policy confusing. After all, the car insurance companies don’t exactly make it easy for people to understand, by inserting a lot of terminology that you have to be a car insurance broker to understand. However, what might seem like it was written in a foreign language can be come understandable if you only look for a minute at what everything actually means. It’ll take you less than ten minutes to read, and when you’re done you’ll have no excuse for not understanding the conditions of your auto insurance policy.
- Declarations.
This is the catch all area of your auto insurance policy. It has all of the information that you already know, such as your name and policy number, and it also lists the type of coverage that you are insured for. Another thing that this section has is the limits of your coverage and the required deductibles.
When you receive this paper, look over the information to make sure it is all correct. Make sure that your coverage, your limits, and your deductibles are right, but also check all of your personal information. If this is incorrect, then you might have a claim denied later on for having giving incorrect information on your CA auto insurance policy.
- Insuring agreement.
This area of your auto insurance policy goes into some more detail regarding your coverage purchased and the limits of that coverage. Read this section over so that you can understand what you are being offered and be clear on your coverage for claim time.
- Exclusions.
Here is the area of your auto insurance policy that goes into detail concerning what your coverage does not take care of. For example, if you only have liability, then it will say that you are not covered for damages to yourself or your vehicle. Compare it to the insuring agreement section for best understanding.
- Conditions.
Read this section a couple of times long before you need to file a claim on your insurance policy. Not only does it list the steps for you when filing claim, but it also gives you ways that you are able to solve any disputes with your car insurance company.
- Definitions.
Here’s a helpful section if you find the terms confusing. It defines them for you.
Cheers,
Fashun Guadarrama.
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