December 9, 2010

Three Tips For Deciding If You Should Use Your Auto Insurance For Repairs

Auto insurance has a number of functions that allow clients to not only get their vehicles repaired but take care of a number of driving needs. The premiums paid each month by consumers go toward not only ensuring that they have a viable source of advice and information about their choices after an accident, but to paying the balance of a large repair bill at a body shop or dealing with the salvage costs of a vehicle. For consumers, it can often be difficult to know if it is worth using insurance for car repairs or if they would be better off simply not repairing the vehicle or paying for the costs themselves. Here are a few tips on knowing when to use auto insurance services to repair a vehicle after an accident.

The first thing to bear in mind after an accident is the cost of repairs to the vehicle. Consumers should take their vehicles directly to a body shop or dealership service department in order to have a cost for repairs estimated. It is important to understand that at no point is a driver obligated to go through insurance in order to pay their own costs. While the driver of another vehicle involved in a collision can have their insurance company liaise with the client's insurance company and pay for their damages, the client of a provider themselves is always able to pay for their own repairs. This means that even if the damage is negligible or sky-high and would be considered to be a write off, a customer can choose to pay for the damages on their own. It is a good idea to set a threshold at which the insurance company will be contacted. In many cases, the police will also have a threshold of damage at which they require an accident to be reported, and it can often be useful to use this at the limit beyond which an insurance claim will be made.

Consumers must also consider what the end result for the auto insurance rates will be if a claim is made. Even on high-damage repairs, if the cost of the claim will drive up rates to an unbearable amount, it may be worthwhile to simply pay to have the vehicle fixed. Even if the cost increase is not substantial, a client must consider that they will be paying an increase rate for the life of their insurance policy, and this can add up over time.

Auto insurance can be an excellent way to have car repairs quickly completed, but clients must consider what is best for both themselves and their vehicle before starting a claim.