How Much Does A Minor Car Accident Cost?
Do you have any big plans for the day? Maybe you’re meeting your future significant other on a coffee date. Perhaps you have a long list of errands to complete. Or is this going to be your spa day? One of the possible events you definitely didn’t plan on is having a car accident. However, for 27,000 of your fellow drivers that is exactly what will happen today. They’re going to get into an accident.
There will be some minor fender benders and more severe “total loss” of autos. Let’s stay positive and focus on the minor car accidents. It shouldn’t cost too much to pull out a dent or smooth out a scrape, right? Actually, wrong. Even a minor car accident can put a huge dent in your wallet. Here are the costs associated with an auto accident to be on the lookout for :
Insurance Rates Going Up
Many insurance companies offer “good driver discounts.” They want to reward you for keeping it safe out there. The reverse is also true. Even if you didn’t cause the accident, the moment you file a claim your premium costs could start ticking up. How much? That depends on where you live. According to a survey conducted by InsuranceQuotes, if you reside in Massachusetts, your rates could skyrocket up 76% and that’s just after one accident.
Paying for Repairs
You hope that your insurance company is going to pay for all your repairs. The thing to remember is that they’re not going to pay for repairs on a car that isn’t worth the value of those repairs. In other words, if the Kelley Blue Book price of your car comes in at three-thousand and the repairs are five thousand, then you’ll either get the three or be stuck with a total loss. Even on the minor accidents, you’ll still be responsible for the deductible.
Renting a Rental Car
While your car is in the shop getting worked on, you still need to get around. Some insurance policies will cover the cost of a rental car but not if it is a total loss. The good news is that many insurance companies have partnerships with rental car companies. That means you might be able to benefit from a corporate rate. You should still shop around though to make sure you’re getting the best deal especially if you have to stay in the rental beyond what the insurance company will pay.
Settling Your Car Loan
A minor car accident should have you back on the road in a few days. What happens if your car just isn’t the same? Maybe it will need additional repairs down the line. None of that matters to the finance company who lent you the money for the car. They still expect your payments on time whether you can drive the car or not. In the case of a total loss, the insurance company will pay out the value on the car. That might not be enough to satisfy the loan. Guess who gets stuck with that bill? Yes, even though your car might be headed for the scrap heap, you could still be paying it off.
How Much Does A Minor Car Accident Cost? – Final Thoughts
What is the alternative? Obviously, don’t get into an accident!
Short of that, you might want to review your current auto insurance policy to make sure you have good coverage. That includes finding out what happens if the person you get into an accident with doesn’t have insurance. That might mean a trip to small claims court, which is yet another expense. On the bright side, you could end up on Judge Judy.
Anum Yoon is a personal finance blogger and writer. She created and maintains her personal finance blog Current on Currency. You can subscribe to her blog newsletter right here for her weekly updates.
You never know when you are going to have an accident.
Last year, my car was quietly parked in the parking lot and I saw another car backing out like crazy and bumped into my car, damaged my car’s fender, bumper, and one tire. Luckily I was present and got all the info needed. The other driver’s insurance eventually paid for everything but the whole process… what a pain!!
Even without accidents, my car would have issues here and there that need repair. Defintely lots of maintenance expense.
I wish I could live car-free
Charlie,
Same here – I was on the way to work one day and had a deer RAM into the side of my car. It almost sent me off the road. Anyways, the total repair bill was something above $2,400 and it took about two weeks. I was lucky I could borrow a car for this time period to keep costs low. I probably spent over 2 hours on six or seven calls with the insurance company to get them to cover all the costs. They were trying to back out of paying ~$250 for my cracked windshield as a result of the deer crash – they kept trying to say it was a “pre-existing” condition. Anyways, it was a pain to say the least!!
This is great information, thanks for sharing. A lawyer may be of great benefit to you if you are in an accident as they have a lot of experience with insurance companies.
Laurie,
That’s a good point. Hopefully the insurance company is willing to pay up, but if not it can be a good idea to bring along a “friend”.
I’m a new car owner that is still trying to get a feel for how to properly own one and what to prepare for. One thing that I really want to make sure that I have down is what to do after I get into an accident. This gave me some great points on what I will need to pay for and I hope that I can find a good mechanic to help me with repairs and make sure that my insurance is where it needs to be.
Glad to be of service Jorge :-).