Can You Add Collision Coverage After an Accident?
Wondering if you can add collision coverage after an accident? Learn why insurance timing is critical and how to properly secure vehicle protection for the future.
Collision coverage is a type of auto insurance that helps pay for damage to your vehicle resulting from a collision. A common question is whether this coverage can be added after an accident has already occurred. Insurance policies cannot be purchased or modified to cover an event that has already taken place. This principle ensures insurance protects against unforeseen future risks, not past incidents.
Insurance Principles and Timing
Insurance operates on the principle of indemnity, aiming to restore the insured to their financial position before a loss, without allowing them to profit from the event. Coverage is always forward-looking, applying only to incidents that occur after a policy’s effective date. Attempting to add coverage for damage that has already happened is considered insurance fraud.
Insurance companies verify the date and time of an incident against the policy’s effective date to determine coverage applicability. If a claim is filed for an accident that predates the addition of specific coverage, the claim will be denied. This prevents individuals from seeking coverage only when a loss has already materialized.
What Collision Coverage Covers
Collision coverage helps pay to repair or replace your vehicle if it is damaged in an accident with another vehicle or object, such as a fence, tree, or guardrail. This coverage applies regardless of who was at fault for the accident, extending to single-car incidents like rolling over or hitting a pothole. It specifically addresses damage to your own car, distinguishing it from liability insurance, which covers damage you might cause to others’ property or their injuries.
When you have collision coverage, a deductible applies to each claim. This deductible is the amount you agree to pay out-of-pocket towards repairs or replacement before your insurance company covers the remaining costs. Common deductible amounts often range from $250 to $1,000, and choosing a higher deductible can lead to lower premium costs. The maximum amount your collision policy will pay is typically the actual cash value of your vehicle at the time of the loss, minus your deductible.
Navigating an Accident Without Collision Coverage
If you experience an accident and do not have collision coverage, you will be responsible for your vehicle’s repair costs. Obtaining multiple repair estimates is advisable to ensure you get a fair price for the necessary work.
If another driver was at fault, their liability insurance may cover the damage to your vehicle. In such cases, gather the other driver’s insurance information, contact their insurer, and provide details of the incident. Reporting the accident to your own insurer, even without collision coverage, can be important for record-keeping and if you have other applicable coverages, such as uninsured motorist property damage.
Adding Collision Coverage for Future Incidents
To add collision coverage for future protection, contact your current insurance provider or an independent insurance agent. You will typically need to provide details about your vehicle, including its make, model, year, and vehicle identification number (VIN). The agent can then explain the available coverage options and discuss how different deductible amounts will affect your premium.
When considering this coverage, it is beneficial to assess your vehicle’s current market value and your financial capacity to pay for potential repairs yourself. If your vehicle is financed or leased, collision coverage is often a mandatory requirement from the lender. Once you decide, the coverage will become effective from the date specified in your updated policy documents.