For a typical car insurance policy, what type of insurance would pay for paint/body damage (est. <$500) to another vehicle?
If I hit another car and cause damage to it, but do not have comprehensive or collision insurance, and only have property damage liability coverage, would this cover damage to another car for less than $500? My policy states the property damage liability only applies to amounts I am legally obligated to pay, but it does not have a deductible, so I am wondering if it would pay anything at all if I’m not sued. Would I have to wait until the other driver’s insurance company sues me or my insurance company? Would they even do that for a $500 claim? I am calling my insurance company tomorrow, but am just curious if anyone has any insights/experience as to if or how my insurance company would reimburse me or pay for this sort of damage. Thanks.
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7 Answers
My understand that collision insurance protects your car. It shouldn’t have an effect on the payout to a claimant whose car you damaged. It may cause your premium to rise.
@Marina @pdworkin I’m afraid I don’t really quite understand either of your responses…
@Marina Do you mean that it only covers liability, meaning I would need to be sued before the insurance kicked in?
@pdworkin So would property damage liability coverage cover this situation?
Thanks!
I think you are covered for this accident, but not for any damage done to your own vehicle.
Liability insurance covers the damage to the other car. I believe you are legally obligated to pay the claim if you are found to be at fault for the accident. They shouldn’t have to sue you, but if they do sue because you have not paid they will most likely win.
If you caused the damage to another’s vehicle, you are responsible for the damages. You pay for Liability Insurance coverage in the event that there are damages that exceed your deductible. I know from experience that it doesn’t take much to exceed $500.00 in body work, though.
If you suspect the damages may be less than your deductible (i.e., scratches and a minor dent or two) and you did not receive a summons for the accident, approach the other person and offer to pay for the damages out-of-pocket if they don’t report to the insurance company. That might save you the extra expense of having your rates go up because of an at-fault accident (depending on your carrier’s policies).
If the damages exceed the deductible, the other vehicle’s owner can choose to file the claim with their own carrier, which will then obtain reimbursement from your insurer; or they can process their claim and repairs directly through your insurance company. Whichever they choose will not effect you… Your costs are $500.00 or less if the damages are less.
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