What is collision insurance?
Collision coverage helps cover the repair or replacement costs for your vehicle if it’s damaged in a crash with another vehicle or object, no matter who’s at fault. You pay a deductible, and the coverage takes care of the rest. Lenders usually require collision coverage if you’re financing or leasing your car.
How does a car deductible work?
A deductible is the portion of expenses you must cover before your insurance kicks in. It applies to collision and comprehensive coverage.
Should I get my car from the tow yard?
Yes, it’s best to get your car out of the tow yard promptly. They charge you daily for storing your vehicle, and the other driver’s coverage might not be enough to cover your repair costs, towing, rental, and storage fees. You’re also obligated to minimize your losses, so it’s essential to remove your vehicle from the tow yard as soon as possible. If you have collision coverage, your insurance company may handle this process for you. Before retrieving your car, make sure to take photos for documentation.
Can I choose the body shop for collision repairs in California?
Yes, unless your insurance policy specifies otherwise. You’re free to select the repair shop you prefer. You can also inquire with your insurance company for a list of their recommended repair shops.
Will insurance pay for a rental car during repairs?
Yes, insurance may cover a rental car while your car is in the shop. Some insurance companies will directly arrange a rental car for you, while others may require you to pay upfront and reimburse you later. Additionally, if you have rental car coverage as part of your policy, your own insurance company may provide you with a rental car during the repair process.
What do I do if my car is totaled in California?
If the repair costs exceed the value of your car, the insurance company will compensate you for the car’s worth. If you have collision coverage and file a claim with your insurance, you’ll need to pay your deductible first.
What happens if the amount the insurance company offers me is less than the amount of money I owe on my car?
Insurance is obligated to pay you the value of your car, not what you owe on your loan. For instance, if you owe $10,000 but your car is valued at $5,000, insurance will only pay you $5,000. Gap Insurance, however, covers this difference.
What do I do if my car was hit, and their insurance won't pay in California?
If your car was hit and the responsible party’s insurance refuses to pay in California, you can file a lawsuit against both the driver and registered owner. This may prompt their insurance company to engage in negotiations. Small claims court is also an option if your damages total $12,500 or less, which is a simple process for resolving disputes.