Does Auto Insurance Cover Under the Hood Damage to the Car after an Accident?

No driver wants to think about the possibility that he or she will be involved in an accident, and the question, “Does auto insurance cover under the hood damage to the car after an accident?” is an important one. If a driver has been involved in an at-fault accident, he or she must have physical damage coverage in place to pay for repairs to the vehicle.

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If the owner has the right kind of coverage in place, the insurance company will pay for visible damage as well as problems under the hood. The driver will want to make sure the car has been examined carefully by a licensed mechanic. This inspection will reveal any problems with the car caused by the accident. If the additional damage was discovered after the insurance company has made an offer to settle the claim, the owner should contact the insurance company to advise it of the additional damage and to ask that the estimate for repairs be adjusted.

Collision Insurance for Under the Hood Damage

If the under the hood damage was caused by striking another car or an object, collision coverage would be used to pay for it. The vehicle owner would be responsible for paying the policy deductible and the insurance company would be responsible for paying the balance, up to the policy limit which is in place.

In a situation where the damage to the car is extensive and it is declared a write-off, the insurance company’s offer to settle the claim will be based on the car’s cash value at the time of the accident. The company will do some investigating to find out how much similar vehicles (make, model year, amount of mileage) would cost to purchase before making an offer to settle the claim. The owner will not receive the amount he or she paid for the vehicle or the cost to buy a new car.

Comprehensive Insurance for Under the Hood Damage

Not all damage to a vehicle is caused by a collision, and comprehensive coverage pays out when the loss is due to other types of events. Hail, wind, flooding or striking an animal could cause damage to the car’s inner workings.

New car owners who have taken out a loan to finance their vehicle will need to keep full coverage (collision and comprehensive protection) in place until they have paid it off in full. The lender wants to make sure that its investment is protected if a loss occurs. If the car is a write-off, the insurance company will reimburse the lender for the cash value of the vehicle. The owner would still be responsible for paying any outstanding balance on the loan, if he or she does not have gap insurance coverage in place to cover it.

Collision and comprehensive coverage will pay for visible as well as under the hood damage to a vehicle. Make sure that both types are addressed following an accident so that the car is repaired properly.