You were headed out to Bay Beach ready for a fun day with your family when someone blew through a stop sign and smashed into your car. Luckily, no one was hurt, but you still need to get your car fixed. Continue reading to learn more about how to use your auto insurance damage coverage.
Rental Car Coverage
If you had your car towed, you’re probably going to need a rental car as soon as possible so you don’t miss time from work. Even if your car was driveable, you’d still be without it for at least a few days while it’s in the shop.
Many insurance companies have contracts directly with rental car agencies. All you need to do is call them up, and they’ll make a reservation for you. You should get a car that’s similar to yours at no charge. You’d usually only need to pay if you wanted an upgrade.
Other insurance companies might reimburse you up to the daily amount stated in your policy. In that case, you’ll need to call ahead for approval, and then submit your receipt to your insurance company after you return the car.
Your collision or comprehensive coverage will take care of the actual repairs to your car. Collision coverage is for accidents, while comprehensive coverage is for things like a tree falling on your parked car. Most people have both unless they have a very old car and are trying to save money, but your deductible for each may be different.
Your insurance company will usually cover repairs up to about 70 percent of your car’s value depending on your policy. Above that, they’ll likely total your car and issue a check for its current value. Whether your car is repaired or totaled, your deductible is subtracted from any amount your insurance company pays. The only way to avoid paying your deductible is if the other driver is at fault and you make a claim against their liability policy.
GAP coverage is an optional coverage that protects you if your car is totaled when it’s worth less than what you owe on your loan or lease. For example, say you owe $12,000 on a car worth $10,000.
Without GAP coverage, your insurance company will pay $10,000 to your lender, and you’ll need to come up with the additional $2,000 ASAP. Once you no longer have your car, even if it’s because of an accident, your auto loan becomes due immediately — you don’t get to keep making payments on your original schedule.
With GAP coverage, your insurance company will simply pay off the loan, and you have nothing to worry about.
New Car Replacement Coverage
New cars become used cars and drop in value the second you drive off the lot. If you were hit a block away from the dealer, you could lose thousands of dollars because your insurance company would only pay based on the used car value, not the new car price you just paid.
New car replacement coverage gets you back in a brand new car instead. The coverage lasts for a certain amount of time and/or miles depending on your policy.
To learn more about how to use your insurance coverage or if you have the coverage you need to get full compensation after an accident, talk to Pagel & Associates Insurance Agency. We proudly serve the Green Bay area and seek to do right by our customers any time they need to use their policy.