One of the most common things we hear is, “I have full coverage, so I’m covered for everything.”
The truth is that “full coverage” is not an actual insurance policy. It’s just a term people use to describe a policy that typically includes liability, collision, and comprehensive coverage. That does not mean every expense after an accident is paid for.
Before you purchase or renew your policy, take a few minutes to ask your insurance agent a few important questions.
Do I have rental car reimbursement?
Rental car reimbursement is optional and most times overlooked when shopping a new policy. If your vehicle needs repairs for several weeks, you could be responsible for the cost of a rental unless you selected that coverage. Even if your policy includes rental reimbursement, ask about the daily allowance and the maximum amount your insurance will pay.
Many rental reimbursement policies only provide $20 to $40 per day, which often isn’t enough to cover even an economy car these days. If you need a large SUV or pickup truck, you could easily find yourself paying an additional $30 to $50 per day out of pocket for the duration of the repair. Over a few weeks, those extra costs can add up quickly.
Does my policy cover OEM parts?
Insurance companies often prefer the use of aftermarket or recycled parts for just one reason, cost. While those parts may be acceptable in some situations, they are not the same as new Original Equipment Manufacturer (OEM) parts made by your vehicle’s manufacturer. If using factory parts is important to you, ask whether your policy includes OEM parts coverage or if it can be added. Some insurance companies offer an OEM parts endorsement for an additional premium.
What is my deductible?
Your deductible is the amount you are responsible for before your insurance begins paying. A higher deductible can reduce your premium, but it also means more money out of your pocket if you have an accident.
Know what you’re paying for.
Every policy is different. Spending a few minutes reviewing your coverage now can help you avoid unexpected costs later.
At Fiero Collision, we have helped drivers through the repair process for more than 50 years. One lesson we have learned is that the best time to understand your insurance policy is before you need to use it.
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