Following having your vehicle breakdown, your car insurance company will cover whatever costs you incur for repairs to an extent, depending on what type of coverage you have in place. Sometimes, you wake up on the wrong side of the bed. A car that was working just fine yesterday won’t start up the following morning. Worse, you could be on your way back home after a long and stressful day at work and have your car breakdown on you half-way. What do you do? You have car insurance, but to what extent does that help you here?
Whether you just had the vehicle breakdown on you or you’ve been in an accident, and the car needs extensive bodywork, it is vital to know where you stand and what to expect from your insurance agency regarding your vehicle fixed. Setting aside the type of insurance agency you’re using, the type of insurance coverage you have on the affected vehicle will determine the extent to which the expenses are covered. As far as car repairs go, three auto insurance coverage types come into play when your vehicle needs repairs. These different coverage types insure your car to varying degrees, so knowing what they do and do not cover is very important. Moving forward, you should note that no coverage will completely cover you for full car repairs. The primary reason for this is that every plan will require that you pay what is called “excess.” It is only after you’ve paid this that your insurer comes into play and handles the rest of the cost. The amount you pay as excess is usually decided when you get an car insurance plan. Generally speaking, the lesser the amount you pay as excess, the higher your premiums will be. The advantage of this is that when you eventually file a claim, you have less to pay out of pocket.
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Types of Car Insurance Coverage
The first type of car insurance coverage is…
Third-Party Insurance
This type of insurance coverage is purely mandatory. It is what covers the expenses you incur should you damage another individual’s vehicle or property.
Third-Party, Fire and Theft Insurance
This insures your vehicle in case it’s damaged from a fire accident or cases of theft. This type of auto insurance can be considered mandatory or optional, depending on the vehicle’s ownership status. If you are only leasing the vehicle, then this insurance is a must for you. However, if you have fully paid for the car, you may choose to get this insurance. You should note that this auto insurance doesn’t cover car repairs that pop up suddenly.
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Comprehensive Insurance
This primarily includes whatever expenses you incur from non-driving related incidents. It covers everything from vandalism to theft, to acts of nature. In extreme cases, where your vehicle needs to be replaced entirely, comprehensive insurance ensures you get paid the actual cash value (ACV) after your excess must’ve been removed. And finally… Should you be involved in a car-damaging occurrence, get in touch with emergency services and the police where necessary. After that, contact your insurance agency and report a claim. This is because the quicker you reach out and begin the process, the faster you can get things sorted out.
