Having an accident has a lot of repercussions; one of which is that your vehicle may need repairs that often require going through your car insurance policy. Many people wonder if they can pay for their own repairs rather than going through their insurance company.

The answer to this is yes, you can pay for your own repairs, but there are some things to consider before taking this course of action.

Read through this article to learn whether paying for repairs without using your auto insurance policy is a smart move or not and then be sure to enter your zip code in above for a free car insurance comparison!

What Happens After an Accident

First of all, every state has different rules about accidents. If you are in an accident with another vehicle, you may be required by law to report it. Every state has a monetary amount associated with the reporting of an accident to the police. This amount can range from $1,000 to $5,000 in estimated damages. In other words, if you have a fender bender, you can skip the police call and pay for your damages without even contacting your insurance company, although this is not recommended. Once you report an accident, your insurance company must be notified.

In the event that you cause an accident, your insurance company will send someone to assess the damages to your vehicle and to the vehicle of the other person in the accident. They will then cut a check to the other driver. What happens next depends on the type of insurance coverage that you have. If you only have liability coverage on your vehicle, then your vehicle isn’t covered by the insurance company and you are responsible for the costs. If you have collision coverage, your insurance company will cover the damages to your vehicle, or you can refuse the payment and pay for the damages yourself.

When You Pay for Your Own Damages

If you are the cause of an accident and you damage another vehicle, then your insurance rates are going to go up. You can, however, control the cost of that increase by paying for your own repairs yourself. Your increase will be based on how much the insurance company actually has to pay for your claims, so paying for your repairs will reduce long-term costs. This might be a good idea for you if you have some cash in hand, but you don’t think that you can afford the long-term costs of a premium hike.

There is a catch, however, and that is that you could end up losing your collision coverage until you provide proof that the repairs are done on your vehicle to the satisfaction of your insurance company. This could create problems for you if you were planning on holding off on the repairs, especially if your vehicle is financed.

Your lender requires that you carry comprehensive and collision coverage (in addition to your liability coverage) on your vehicle until it is paid in full. When you purchase the vehicle, you sign an actual contract agreeing to this; it is called an Agreement to Provide Insurance. If you don’t have the coverage you are required to carry, your lender has the right to take your vehicle. In most cases, however, they will simply purchase insurance for the vehicle and bill you for it. You don’t want this to happen because they will purchase what is called a forced insurance policy and the premiums can be two to three times more expensive than the premiums that you are getting from your current insurance company.

If your insurance company does continue to insure your vehicle, they will refuse to pay for damages that may have been caused by an accident if a future accident occurs. For example, if you have an accident that smashes your right front right quarter and you decide to pay for repairs yourself, you may decide not to do it or you may not provide proof that the work was done. If you have an accident six months later and your whole font end is smashed up, your insurance company can legally subtract the cost of repairing the front right quarter from the total repairs that they will pay for.

When to Consider Paying for Your Own Repairs

There are times when paying for your own repairs makes sense. The first instance is if the repairs are going to cost less than your deductible. If you have a $500 deductible and $200 in repairs, your insurance company isn’t going to pay for those damages anyway. There is no point in filing a claim (which will lead to increased premiums) when they won’t pay for the damages. Any claims you call in go on your record, even if no payment results.

Another instance where you might want to pay for your own damages is if you are in an accident that doesn’t include another vehicle. You aren’t required to report a one-car accident unless you damage someone’s property in the process.

NOTE: It is considered insurance fraud to have an accident in which you don’t pay for repairs and then use a future accident to have the repairs made.

Lastly, if you have a lot of claims on your insurance and your insurance company has warned that they will drop you if you have any further claims, then you will want to pay for your own repairs if possible. Having no insurance at all is not only against the law, but it can be financially disastrous should a serious accident occur.

There is a reason that you pay for insurance and that reason is for protection against an accident. Having an accident that is even remotely serious can cost thousands of dollars in repair and liability costs. Add to that the cost of injuries and the costs will climb astronomically. You simply don’t want that hanging over you every time you get into your car or truck, so ensure you have at least the minimum required coverage.

Saving Money on Car Insurance

If you are concerned about the amount of coverage that you currently have and you feel that you are paying too much for your current insurance policy, or you don’t have insurance at all, it is time for you to discover who can make you the best offer on your auto insurance premiums.

Yes, cheap car insurance can be a reality! Are you willing to do a little homework to make it happen?

Buying auto insurance is much like any investment; you can check things out before you make a purchase. The easiest way to do this is to get an auto insurance quote. This can be achieved by visiting auto insurance websites or by using a free online car insurance quote tool.