If you accidentally crashed your car into your garage, would the damage be covered by your home insurance, auto insurance, or neither? It mainly depends on the type of coverage you carry, the insurer, and the circumstances of the accident. Here's what to know about insurance for crashing into your garage.
When you drive your car into any part of your home or other structures, your home insurance will pay for the damage. But your auto insurance may or may not cover the damage to your car, depending on your policy type. Collision insurance should cover it. Many people don't carry it since extra coverage is only required while a bank loan finances your car.
The first thing to think about after running into your garage is whether or not you should file a claim if you carry a standard home insurance policy. If the damage to your home is minor, you may not want to file a claim since it could raise your insurance rate, which will cost more in the long run. Severe damage to a home by a car usually does warrant filing a claim. Be sure to report damage to any other possessions due to the crash.
You need to understand insurance terms such as "actual cash value" and "replacement cost." An old item, for example, does not command the same market value as when it was first purchased. So its actual cash value will lead to a smaller coverage payout than its replacement cost. The term "other structures" includes fences, walkways, and mailboxes.
How badly was your car damaged in the crash? Like with your home insurance, you should avoid filing an auto insurance claim if the damage to your vehicle is minimal. This strategy is effective when the cost of auto repair is within what you pay for the deductible, which is the upfront money you pay when you file a claim.
You don't need to contact the police if the accident was minor and no other parties were involved. But if the damage is significant, it's helpful to get a police report to document it. A detailed police report helps back up an accident claim.
After getting involved in a car accident, it's a good idea to notify your insurance company directly about the damage. Insurance companies typically require customers to call them immediately when an accident occurs. Your claim will be handled by a claims adjuster who can answer your questions about the process.
Crashing into your garage can trigger filing two separate claims involving your home and auto insurance. Contact us here at CF&P Insurance Brokers to learn more about how to protect your home and vehicle from unforeseen disasters.
