Insured vs. Non-insured Collision Repair

As a Denver Auto body shop, we do get a lot of questions concerning collision repair. And, many of those questions come down to insurance. Is it better to have their insurance cover auto body repairs and pay the deductible, or pay everything out-of-pocket? We call this the great “insured vs non-insured collision repair” debate. Let’s take a look at both the pros and cons of each.

Insured Collision Repair Pros

First of all, you have insurance for a reason, and it is the law. But, that does not mean people will actually use their insurance to cover the cost of collision repairs. However, the big pro to using insurance for the repair is the fact you pay less money out of pocket. All you have to do is pay your deductible, which, depending on your policy, could be anywhere from $200 to $1,000. Depending on the severity of the damage to your vehicle, this could be a lot cheaper than paying for the repair yourself.

Insured Collision Repair Cons

While the most significant factor for carrying insurance is the fact that they will fit the bill for repairs, it does come with a downside. When you make a claim with your insurance company, and they cover the cost of repair, they will likely increase your fees. As a result, your monthly bill can go up for a period of time. You will have to weigh the impact of the increased insurance cost versus that of paying out of pocket for your repairs.

Also, when insurance gets involved, they may decide not to repair your vehicle based on the repair estimate compared to the cash value of your car. If repairs, for example, are more than the actual car value, they may decide to pay you the car’s cash value. Typically, if the damage exceeds 65 to 70 percent of the car’s market value, insurance can choose to “total” it.  If your insurance does total your vehicle, you can still choose to have it repaired at your own expense.  However, if it is too much of a financial burden to get it fixed, you are better off parting with the vehicle.

Non-Insured Auto Body Repair Pros

When you opt to cover the repairs yourself, you do have more control over parts and the way you would like the replacement to go. And, you can, potentially, avoid an increase in your insurance rates. However, if you collided with another vehicle and that driver files a claim and has your insurance information, your insurance company will likely be contacting you and will have note of an accident. As a result, you may still see an increase in your coverage. That is why, for a dent or two, or a literal fender bender, you may be able to cover those repairs without the help of insurance. But, if it is a collision that involves other parties and has significant damage to your car, you should consider using insurance for your repair.

Non-Insured Collision Repair Cons

If you get the repairs done without insurance, your insurance may not provide you with coverage on your vehicle. After all, they are the ones who have to ensure the integrity of the vehicle after repairs. So, if you decide to have a car repaired, especially if doing it yourself or at a shop that is not in your insurer’s network, you run a risk losing any coverage you had on the vehicle. That is why if you have anything moderate to significant damage to your car, it is best to have your insurance company handle the repairs. After all, it would be bad to get your car repaired, and yet not find anyone to insure it, putting you at further risk.

Need Collision Repair

If you have any questions about insurance and how they work with auto body shops, feel free to give us a call. And, if you require auto body repair, we do provide free estimates. Schedule your free estimate online today!