When it comes to automobile insurance, many drivers wonder about the level of protection they get from full coverage auto insurance, especially when it comes to car repairs. Full coverage is often considered the gold standard in auto insurance, offering more than just basic liability. However, the specifics of what is covered—particularly regarding repairs—can be confusing. This article aims to clarify how full coverage auto insurance works and whether it covers repairs, providing you with all the information you need to make an informed decision.
What is Full Coverage Auto Insurance?
Full coverage auto insurance typically includes several types of coverage that go beyond the state-required minimums. While the exact composition can vary depending on the insurer and the policy, it generally includes:
Liability Coverage: This is the basic form of coverage required in most states. It covers damages and medical expenses for other people if you are at fault in an accident.
Collision Coverage: Pays for damages to your vehicle if you’re involved in an accident, regardless of who is at fault.
Comprehensive Coverage: Covers non-collision damages to your vehicle, such as theft, vandalism, natural disasters, and hitting an animal.
Personal Injury Protection (PIP) or Medical Payments: Covers medical costs for you and your passengers, regardless of who caused the accident.
Uninsured/Underinsured Motorist Coverage: Protects you if you are involved in an accident with a driver who doesn’t have adequate insurance.
Full coverage auto insurance is designed to provide a higher level of protection than the minimum requirements, but how much of that protection extends to repair costs?
Does Full Coverage Auto Insurance Cover Car Repairs?
The short answer is: It depends. Full coverage insurance will cover the cost of repairs under certain circumstances, but it’s important to understand the specifics. Here’s a detailed breakdown of how full coverage auto insurance handles repairs.
Collision Coverage and Repairs
One of the primary components of full coverage insurance that relates directly to repairs is collision coverage. This component covers damages to your car when it is involved in a collision, regardless of who is at fault.
For example, if you are rear-ended or hit another vehicle, collision coverage will pay for the repairs to your vehicle, minus your deductible. However, collision coverage only applies when your vehicle is involved in a collision with another vehicle or object, such as a fence or guardrail. It does not cover damages that occur from non-collision-related incidents.
Comprehensive Coverage and Repairs
Comprehensive coverage protects against damages that happen outside of collisions. This could include things like:
Hail damage
Theft or vandalism
Animal collisions (e.g., hitting a deer)
Fire or natural disasters (e.g., flooding)
If your car is damaged by any of these non-collision-related events, your comprehensive coverage would help cover the cost of repairs, minus your deductible.
In short, comprehensive insurance covers repairs caused by events that are beyond your control, but again, it is important to note that not all situations are covered. For instance, regular wear and tear or mechanical breakdowns would not be covered under this policy.
What Does Full Coverage Not Cover for Car Repairs?
While full coverage insurance is quite comprehensive, it does not cover every repair need. There are several situations where full coverage auto insurance will not help with repairs, including:
Mechanical Breakdown and Maintenance
Full coverage insurance does not cover repairs related to the regular wear and tear of your vehicle. If your car breaks down due to a mechanical issue, such as a faulty engine or worn-out brakes, full coverage insurance will not cover the repair costs.
For such cases, you may need a mechanical breakdown insurance (MBI) policy, which is a separate form of coverage designed to protect against the cost of repairs related to mechanical failure.
Tires and Wheels
If you have damage to your tires or wheels, whether through a blowout or running over debris, your full coverage policy is unlikely to cover the repair costs. Typically, you will need to handle the repair or replacement of tires and wheels out of pocket unless you have a specific tire and wheel protection plan attached to your policy.
Damage from Negligence
If the damage to your vehicle is the result of your negligence, full coverage insurance may not cover the repairs. For example, if you leave your car parked in an unsafe location and it gets damaged, the insurance might not cover the repair costs, especially if it was avoidable.
Cosmetic Damage
Full coverage insurance typically does not pay for cosmetic damage to your vehicle. If you have a dent or a scratch that does not affect the car’s functionality, such as a small scratch on the door or a dent in the bumper, your policy may not cover the repair unless the damage affects the safety of the vehicle.
How the Deductible Affects Repair Coverage
A significant aspect of understanding repair coverage under full coverage auto insurance is the deductible. A deductible is the amount you must pay out of pocket before your insurance kicks in to cover the remaining repair costs. For example, if you have a deductible of $500 and your repair costs amount to $2,000, you would need to pay the first $500, and your insurer would cover the remaining $1,500.
The size of your deductible plays a key role in the overall cost of your insurance premium. Generally, a higher deductible leads to a lower premium, but it also means you’ll pay more out of pocket when you need to file a claim for repairs. When choosing your deductible, it’s important to balance the cost of the premium with how much you could reasonably afford to pay in the event of a claim.
The Role of Insurance in Handling Car Repairs
After an accident or incident, the process of repairing your car through full coverage auto insurance generally follows these steps:
Report the Incident: Contact your insurance provider as soon as possible to report the damage. You’ll need to provide details about what happened and submit any relevant documentation (e.g., police reports or photos of the damage).
Assessment of Damages: Your insurer will typically send an adjuster to assess the damage to your vehicle and determine how much they will cover. This step is crucial in deciding whether the damage falls under your collision or comprehensive coverage.
Approval for Repair: Once the damage assessment is complete, your insurer will approve the repairs and either pay the repair shop directly or reimburse you once the repairs are done. The amount they pay will be subject to your deductible and any coverage limits.
Choosing a Repair Shop: Some policies may have preferred repair shops, and using these might ensure the best rates and faster repairs. However, most insurers will allow you to choose your own repair facility.
When Should You Consider Repair Insurance Add-Ons?
While full coverage auto insurance is a great starting point for protecting your car, some drivers may find it worthwhile to explore additional coverage options or add-ons to ensure they are fully protected when it comes to repairs.
Mechanical Breakdown Insurance (MBI)
As mentioned earlier, MBI is a policy that specifically covers the cost of mechanical repairs. If you are driving an older vehicle or if you are concerned about the costs of potential breakdowns, MBI might be worth considering. It can be a great supplement to full coverage insurance to protect against the high costs of repairs that are not accident-related.
Roadside Assistance
While not directly related to repair coverage, roadside assistance is an add-on that can help with emergency situations such as a flat tire, dead battery, or getting locked out of your car. This service can be helpful for minor repairs and immediate roadside fixes, but it does not cover in-depth repair work or major issues.
Conclusion
Full coverage auto insurance provides a robust level of protection when it comes to car repairs, but it’s essential to understand the nuances of what is and isn’t covered. Collision and comprehensive coverage are the key components that will help with repair costs, but regular wear and tear, mechanical breakdowns, and certain types of cosmetic damage are not covered. Additionally, your deductible plays an important role in determining how much you pay out of pocket before your insurer steps in.
Ultimately, full coverage auto insurance can be a great way to protect your vehicle from unexpected repair costs, but it’s essential to supplement it with additional coverage options if you want more comprehensive protection. Understanding the limits of your policy and ensuring that you are adequately covered for the repairs you might need can save you a lot of money and stress down the road.
