What Car Insurance Actually Covers When Your Car Needs Repairs

Car insurance covers repairs only if the damage comes from a covered cause

Whether your insurance pays for repairs depends on what caused the damage and what type of coverage you have. Collision coverage pays for repairs after an accident with another vehicle or object. Comprehensive coverage pays for repairs from theft, weather, vandalism, or hitting an animal. Liability coverage does not pay for your own repairs — it pays for damage you cause to someone else's car or property.

If you cause an accident and have collision coverage, your insurance pays for your repairs minus your deductible. If a tree falls on your car and you have comprehensive coverage, that also pays minus your deductible. But if you have only liability coverage, which is the minimum required in most states, your own repairs come out of your pocket no matter what caused the damage.

Routine maintenance — oil changes, tire replacements, brake pads — is never covered by any type of car insurance. Insurance covers sudden damage from accidents or events, not wear and tear.

Key Takeaways

• Collision coverage pays for repairs after you hit another vehicle or object, minus your deductible.
• Comprehensive coverage pays for repairs from theft, weather, vandalism, or animal strikes, minus your deductible.
• Liability coverage pays for damage you cause to someone else's car, not repairs to your own vehicle.
• Routine maintenance and wear-and-tear repairs are never covered by any car insurance policy.
• Your deductible is the amount you pay out of pocket before insurance pays the rest of the repair bill.

How collision coverage works when you cause an accident

Collision coverage pays for repairs to your car after you hit another vehicle, a pole, a guardrail, or any other object. You pay your deductible first — commonly $500 or $1,000, though you can choose a lower or higher amount — and your insurance pays the rest of the repair bill up to your car's actual cash value.

If the repair cost is less than your deductible, you pay the full amount yourself and do not file a claim. If the repair costs $2,500 and your deductible is $500, you pay $500 and insurance pays $2,000. If your car is worth $3,000 total and the repairs cost $4,000, the insurance company may declare it a total loss and pay you the car's value minus your deductible instead of paying for repairs.

You do not need collision coverage if you own your car outright. If you financed or leased your car, your lender or leasing company usually requires you to carry it. Collision coverage costs more than liability alone, and the cost varies by your age, driving record, location, and the make and model of your car.

What comprehensive coverage pays for besides accidents

Comprehensive coverage pays for repairs when your car is damaged by something other than a collision. This includes theft, vandalism, weather damage (hail, flooding, wind), hitting an animal, and falling objects like tree branches or debris. Like collision coverage, you pay your deductible first and insurance pays the rest.

If a deer runs into your car on the highway, comprehensive coverage pays for the repairs. If a storm breaks your windshield or hail dents your roof, comprehensive coverage pays. If someone breaks into your car and steals parts or damages the interior, comprehensive coverage pays. If a tree falls on your parked car, comprehensive coverage pays.

Comprehensive coverage is optional if you own your car outright, but lenders and leasing companies usually require it. The cost is typically lower than collision coverage because these events happen less often than accidents. Your deductible for comprehensive claims is separate from your collision deductible — you might have a $500 deductible for collision and a $250 deductible for comprehensive, or any other combination you choose.

Why liability coverage does not pay for your own repairs

Liability coverage is the minimum insurance required in every state except New Hampshire. It pays for damage you cause to someone else's car, property, or injuries to another person. It does not pay for repairs to your own vehicle under any circumstance.

If you cause an accident and the other driver's car is damaged, your liability coverage pays for their repairs. If you hit a fence or mailbox, your liability coverage pays the owner to fix it. But if your car is damaged in that same accident, your liability coverage does not cover it. You would need collision coverage to pay for your own repairs in that situation.

Liability coverage is cheaper than collision or comprehensive because it only covers the other party. Many people carry only liability coverage because they own an older car that is not worth much, or because they cannot afford the higher premiums. In those cases, they pay out of pocket for their own repairs.

What happens when you file a repair claim

When you have damage covered by your insurance, you contact your insurance company to report the claim. You provide details about what happened, when it happened, and where your car is. The insurance company assigns a claims adjuster who inspects the damage and estimates the repair cost.

You can take your car to any repair shop you choose — you are not required to use your insurance company's preferred shops, though some insurers offer discounts if you do. Get a repair estimate from the shop and send it to your claims adjuster. The adjuster compares the estimate to their own assessment and approves payment.

Once approved, you can drop your car off at the repair shop. You pay your deductible to the shop when you pick up the repaired car, and the shop bills your insurance company for the rest. Some shops will waive or reduce your deductible if you use them, though this varies by shop and insurer.

Situations where insurance will not pay for repairs

Insurance will not pay if the damage is not covered by your policy. If you have only liability coverage and you cause an accident, your own repairs are not covered. If you have collision coverage but the damage comes from normal wear and tear — a transmission failure, engine problems, or rust — insurance does not pay because these are maintenance issues, not sudden damage from a covered event.

Insurance will not pay if you caused the damage intentionally or through illegal activity. If you were driving under the influence when you crashed, your insurance company may deny the claim. If you were racing or driving recklessly, the claim may be denied. Insurance also will not pay for repairs if you failed to maintain your car — for example, if your brakes failed because you never changed the brake pads, that is a maintenance failure, not a covered loss.

If you do not report the damage promptly, your insurance company may deny the claim. Most policies require you to report accidents or damage within a certain time frame, often 24 to 72 hours. If you wait weeks to file, the company may argue that you cannot prove the damage was recent or that it came from the cause you claim.

How your deductible affects what you pay

Your deductible is the amount you pay toward repairs before insurance pays anything. A higher deductible means lower monthly premiums but more money out of your pocket when you file a claim. A lower deductible means higher monthly premiums but less money out of your pocket per claim.

Common deductible amounts are $250, $500, $1,000, and $2,500. If you choose a $250 deductible and your repairs cost $1,500, you pay $250 and insurance pays $1,250. If you choose a $1,000 deductible for the same $1,500 repair, you pay $1,000 and insurance pays $500. Over time, the money you save on premiums with a higher deductible may or may not offset what you would pay out of pocket if you have a claim.

Some insurance companies offer a $0 deductible for comprehensive claims if you have collision coverage, or they may waive your deductible if you use one of their preferred repair shops. Read your policy documents to see what deductibles explore to each type of coverage.

Frequently Asked Questions

Does insurance cover windshield replacement?

Windshield damage is covered under comprehensive coverage in most policies. Many insurers waive the deductible for glass claims, so you may pay nothing out of pocket. Some states require insurers to cover glass with no deductible. Check your policy or call your insurance company to confirm what you pay for windshield replacement.

What if the repair shop charges more than the insurance estimate?

If the repair shop finds additional damage once they start work, they contact your insurance adjuster to request approval for the extra cost. If the shop straightforward charges more than the estimate without finding new damage, you can dispute the bill with the shop or ask your insurance company to negotiate. You are not responsible for paying more than the approved estimate unless you authorized the extra work in writing.

Can I get repairs done without going through insurance?

Yes. You can pay out of pocket for repairs and not file a claim. This makes sense if the repair cost is close to your deductible, because filing a claim might not save you money. Paying out of pocket also means your claim history stays clean, which can help keep your premiums from rising. However, if the repair is expensive, filing a claim usually saves you money despite the deductible.

Does insurance cover repairs if I was at fault in an accident?

Yes, collision coverage pays for your repairs even if you caused the accident. You pay your deductible, and insurance pays the rest. Your rates may increase after a at-fault accident, but the damage to your car is still covered. If you have only liability coverage, your own repairs are not covered regardless of fault.

What if my car is declared a total loss?

If repair costs exceed 70 to 80 percent of your car's actual cash value (the percentage varies by state and insurer), the insurance company declares it a total loss. They pay you the car's value minus your deductible instead of paying for repairs. You keep the car or sign it over to the insurance company, depending on your policy. The insurance company may sell the damaged car to a salvage yard to recover some of their cost.