Almost every car owner has faced the gut-wrenching reality of finding a new dent or scratch on their car. It could be as a result of carelessly hitting a fence while reversing or getting a dent from a car bumping into you. In either case, there is always the thought of how much it will cost to get it fixed. The more immediate thought however is whether or not the car insurance policy will cover these scratches and dents.
In this article, we evaluate how scratches and dents are typically handled by car insurance policies and how best you can exploit your options for maximum benefit.
Knowing Your Car Insurance Options
Before we discuss specific situations, let’s outline the key types of auto insurance coverage that are relevant in case of scratches or dents.
Comprehensive Coverage
Comprehensive coverage is meant to take care of damages to your vehicle that are not the result of collision with another car. These usually include:
Animal collisions (e.g., hitting a deer)
Vandalism and theft
Natural disasters (storms, floods, hail)
If your car suffers scratches or dents due to these incidents and you have comprehensive coverage, your policy will generally cover repairs after factoring your deductible.
Collision Coverage
Collision coverage addresses damages incurred as a result of an accident with another moving vehicle or a fixed object. Examples include:
Crashing into another car
Hitting objects like poles, fences, or walls
Collision coverage is crucial for drivers frequently navigating tight parking spaces or congested areas where minor accidents are more likely to happen. Like comprehensive coverage, your deductible applies.
Liability Coverage
Liability insurance is mandatory almost everywhere. It protects damages incurred to other vehicles or property, and not your own car. In most cases, if another driver damages your vehicle, their liability insurance will pay for the repairs. In case you damage your own vehicle, liability coverage will not assist you.
How Does the Deductible Work for Scratches and Dents?
Your deductible is the set amount you are willing to spend out of pocket before the remaining costs are covered by your insurance. Take this example:
Your deductible: $500
Damage costs: $300
In this case, because the repair costs ($300) are less than your deductible, you overspend and end up paying for repairs entirely.
Now, consider this scenario: If the damage is $2,000 and you have collision coverage, you will pay $500 as deductible and the insurance will pay the remaining $1,500.
Illustrative Example Scenarios
I want to discuss this more clearly:
Scenario 1: Backing Into a Mailbox
Think of damages worth $700 from reversing into a mailbox. You have collision coverage with a $500 deductible. In this case, your obligation is the deductible of $500. Insurance covers the rest ($200).
Scenario 2: Vandalism
If someone keys your car resulting in $1,200 worth of repairs, your comprehensive insurance would help you out. Assuming a $300 deductible, insurance pays $900.
Claim Submission for Scratches and Dents
When ready to file the claim, these are the steps to achieve a seamless experience:
Document Damage:
Take photos or videos immediately.
Ensure multiple angles to showcase the extent of damages tangibly.
Get Relevant Documents:
If another party is involved or there’s an element of vandalism, make sure to get a police report.
Communicate with your insurance:
Insurance has to be notified promptly. That way there is no confusion and the claims process is speedy.
Communication with your insurer is key to understanding your roles and what the next steps will be.
Historical Context and Design Principles Behind Coverage
The comprehensive and collision coverage concepts emerged in response to various problems drivers face. In the earlier days of automobile insurance, only serious accidents were insured against, leaving drivers exposed to expensive minor damages. Comprehensive policies started appearing in the middle of the 20th century as an attempt to economically serve the changing needs of customers and emerging trends in automobiles, enabling more varied protection.
Today’s comprehensive policies are a product of modern insurance philosophies which strive for clarity, convenience, and responsiveness, ensuring both minor and major damages are consistently covered.
Importance of Preventative Maintenance
While recognizing the coverage is important, vehicle owners must also focus on preventative maintenance to limit the chances of scratches and dents.
Maintain the protective coating of your car by washing and waxing it.
Avoid parking in crowded areas to minimize potential dings.
Purchase bumper guards and side-door protectors for added defense.
By proactively managing potential risks, drivers can reduce the damage they incur.
Why Understanding Your Policy Matters
Understanding how your coverage applies is critical because preposterous scenarios become less stressful and financial decisions relating to claims become more informed in that coverage terms are better understood.
Practical Tips for Policy Management
Adjust your budget and risk appetite with the deductible you set.
Be on the lookout for policy updates or improvements in coverage that your insurance company may provide.
If you frequently park in high-risk areas or have a tendency to experience minor accidents, you may want to consider supplemental coverage.
The Future of Car Insurance Coverage
With the evolution of automotive technology, insurance companies are beginning to deal with new automated driving features, as well as vehicle to vehicle communication. These features may lower accidents in the future, which will prompt insurers to change how they manage coverage and pricing. Vehicle owners need to pay attention to these developments so that they do not end up overpaying or under-insured.
Final thoughts
The appearance of a vehicle is very important, and as such, maintaining the vehicle’s exterior is important to safeguard its value. While the scratches and dents are minor in nature, they can drastically reduce the value of the vehicle.
Pay attention to the policy terms and ensure your vehicle is sufficiently insured, and tackle driving with no worries.
