Lately there is an increasing trend of people preferring to not use their car insurance when it comes to their car repairs. They may say that they don’t want their rates to go up. They may say it’s because they don’t want to deal with the headache. Or simply put, they just don’t want to use their car insurance. Whatever the case may be, here is when to use your car insurance for car repairs.

Things to consider when using car insurance

Your deductible when using car insurance

The absolute first thing you need to consider when deciding whether or not to use your car insurance is your deductible. Deductibles can range from $100 to $1,000. Maybe even more depending on your policy. If you are unsure what your deductible will be, call your insurance.

If your repairs are as simple as replacing a side mirror and you have a $1,000 deductible, it may be cheaper to just pay out of pocket.

The most common deductible amount we see at Poway Valley Collision is $500.

However, there is no such thing as a $500 car repair anymore. Even doing a simple bumper job can still cost $1,400.

So more often than not, the repairs you may need could cost more than your deductible.

How much your rates will go up

Rates going up is a common reason we see when it comes to people not wanting to use their car insurance. And rates can go up for a number of different reasons.

When your rates go up, it increases your monthly insurance premium.

But how much is your rate going up per month compared to how much you will have to pay out of pocket in one sitting? This will be something to consider when deciding whether to use your car insurance.

As always, consult with your insurance team for more information. And your rates won’t be affected just by calling them to ask if they would if you were to file a claim.

Estimates are not final bills

When you first get the damage looked at on your vehicle, you will receive what is called an estimate. That preliminary estimate is the estimator’s best guess at what the cost of the damage will be strictly based on what they can see from the outside of the vehicle.

But a big thing to note is that preliminary estimates are NOT final bills. This is extremely important to note.

An estimator can ONLY write an estimate for the damage they can visually see. They cannot adds items to the estimate for damage that they cannot see.

As such, the preliminary estimate is just a starting point for the total cost.

Once the car is disassembled, that is when our technicians and estimators can get a better understanding of the true cost of the damage involved. This means if you have substantial damage to your vehicle, you can expect that estimate to go up after disassembly.

So even if you end up having a relatively low preliminary estimate, the total cost of the repairs could easily go over your deductible amount. Or be much more than what you had wanted to pay out of pocket.

Rental coverage with your car insurance

If you added rental car coverage onto your insurance, this can be a huge help after an accident has happened. Especially if the damage is bad enough that your car will be in the shop for a while.

Opening a claim would allow you to use your rental coverage so that you won’t have to pay for your rental out of pocket. Because this cost can add up fast!

Even with Poway Valley Collision‘s partnership with Enterprise, the cheapest rate we can get for our customers is still $42 a day.

So when should you use your car insurance?

Ultimately whether or not you should use your car insurance depends entirely on your specific situation. Ask yourself these questions to help you decide:

• How much is your deductible if you were to open a claim?
• Is the cost of the repairs more than your deductible?
• Would opening up a claim raise your rates? And if so, by how much?
• Is the damage substantial enough that there is likely to be a lot of hidden damage?
• Do you need a rental car during the time of repairs?
• Did you add rental car coverage onto your insurance plan?

These are all things to consider to help you make the best decision before starting the repair process.