How Does Insurance Work When Getting a Car Repaired After an Accident?

After a car accident, dealing with vehicle damage can feel almost as stressful as the accident itself. You may need to contact an insurance company, arrange an estimate, choose a collision repair shop, determine what your deductible will be, and wait for repairs to be approved. If additional damage is discovered once repairs begin, the process can involve even more communication between the repair facility and insurer.

Understanding how insurance works when getting a car repaired after an accident can make the process easier to navigate. Although every accident, insurance policy, and claim is different, most collision repair claims follow a similar general process.

Here is what drivers should know about insurance claims and collision repair after an accident.

Step 1: Report the Accident and Start the Insurance Claim

Following an accident, one of the first steps is typically reporting the incident to the appropriate insurance company. Depending on the circumstances, that could mean filing a claim with your own insurer, the other driver’s insurer, or both.

When reporting the accident, you may be asked for information such as:

• When and where the accident happened
• Vehicles and drivers involved
• Photos of the vehicle damage
• A police report or report number, if applicable
• A description of what happened
• Contact and insurance information for the other driver

Documenting the accident scene and vehicle damage is helpful throughout the claims process. Keep copies of relevant photographs, estimates, claim information, receipts, and correspondence.

The insurance company will generally assign a claim number and a claims representative or adjuster who handles the claim.

Step 2: Determine Which Insurance Coverage Applies

Who ultimately pays for vehicle repairs depends on factors such as fault, applicable state law, the insurance policies involved, and the types of coverage available.

Collision coverage is one of the primary types of insurance used for repairing your own vehicle after a crash. It pays for damage to an insured vehicle resulting from hitting another vehicle or object. Collision and comprehensive coverage are generally not required by state law, although lenders may require them for financed or leased vehicles.

If another driver is responsible for the accident, that driver’s property damage liability coverage may potentially pay for damage to your vehicle, subject to coverage, liability determinations, policy limits, and applicable law.

The exact process can vary considerably, which is why drivers should review their policies and communicate directly with their insurance companies about their specific claims.

Step 3: Get the Vehicle Damage Inspected

Before repairs can move forward, the damage usually needs to be documented and evaluated.

Depending on the insurer and circumstances, this may involve an in-person inspection, photographs submitted through an app or website, an inspection at a collision repair facility, or another estimating process.

The resulting estimate identifies visible damage and calculates an initial expected repair cost.

However, an important word here is initial.

Not all collision damage can be identified simply by looking at the exterior of a vehicle. A damaged bumper cover, for example, can conceal damage to components underneath it. Additional problems may become apparent only after technicians begin disassembling the damaged area.

For that reason, the insurer’s initial estimate should not necessarily be viewed as the final description of everything required to repair the vehicle.

Step 4: Choose a Collision Repair Shop

A common question after an accident is:

Does my insurance company get to choose where I have my car repaired?

Rules can vary by state, so drivers should verify their rights with their state insurance regulator. In Pennsylvania, for example, the choice of where a vehicle is repaired is up to the vehicle owner. Its consumer FAQ similarly states that consumers are not required to use a specific repair shop.

An insurance company may provide information about repair facilities or have a network of shops with which it regularly works. That does not necessarily mean you are required to choose one of those facilities.

When selecting a collision repair shop, look beyond convenience. Consider the facility’s training, certifications, reputation, repair procedures, warranties, experience with your make and model, and ability to perform or coordinate the procedures modern vehicles may require.

The goal isn’t simply to make the vehicle look good again. Proper collision repair should address the damage necessary to restore the vehicle appropriately.

Step 5: The Collision Repair Shop Develops a Repair Plan

Once your vehicle arrives at the collision repair facility, the shop can evaluate the damage and determine what procedures, parts, materials, and labor may be necessary.

Depending on the severity and location of the damage, repairs could involve:

• Removing damaged exterior components
• Repairing or replacing body panels
• Structural measurements and repairs
• Bumper repair or replacement
• Refinishing and paint matching
• Wheel alignment or suspension work
• Diagnostic scanning
• Sensor or camera calibration
• Reassembly and final inspections

Today’s vehicles can contain cameras, radar units, sensors, and other advanced driver assistance system (ADAS) components, making a complete evaluation particularly important after a collision.

The repair shop and insurance company may communicate during this stage to reconcile the insurer’s estimate with the shop’s repair plan.

Step 6: What Happens If the Shop Finds Additional Damage?

This is one of the most confusing parts of collision repair for many vehicle owners.

Suppose an insurance adjuster initially estimates that repairs will cost $4,000. Once the body shop removes the damaged bumper and other components, technicians discover additional damage that couldn’t be seen during the original inspection.

Does that mean you automatically have to pay the difference?

Not necessarily.

The collision repair shop may prepare what is commonly called a supplement. A supplement documents additional damage, parts, labor, or procedures that were not included in the original insurance estimate.

The shop can then submit the supplemental information to the insurer for review. The insurer may inspect the additional damage, request photographs or documentation, and determine whether the additional work is covered under the claim.

This process is one reason a repair estimate can change after a vehicle has been disassembled.

Step 7: Understand Your Deductible

If you’re using your own collision coverage, your deductible can affect what you pay out of pocket.

A deductible is the portion of a covered loss that the policyholder is responsible for paying. The deductible is subtracted from what the insurer pays toward a claim.

For example, suppose covered collision repairs total $6,000 and your collision deductible is $500. In a simplified example, the insurer’s covered portion would be $5,500, while you would be responsible for the $500 deductible.

Collision coverage commonly carries a deductible. The exact amount depends on the policy you selected.

If another driver was responsible for the accident, deductible issues can become more complicated. For example, your insurer might pay your collision claim and later attempt to recover its payment from the responsible driver’s insurance company through a process known as subrogation. If recovery is successful, you may potentially recover your deductible as well.

Ask your insurer how the deductible applies to your particular claim rather than assuming you will—or won’t—have to pay it.

Step 8: What Parts Will Insurance Pay For?

Another important insurance and collision repair question concerns replacement parts.

Depending on the vehicle, policy, state regulations, and insurer, an estimate might specify:

• New original equipment manufacturer (OEM) parts
• Aftermarket parts
• Recycled or used OEM parts
• Reconditioned or remanufactured components, where appropriate

This can become an important discussion between the vehicle owner, collision repair facility, and insurance company. Because requirements differ by policy and jurisdiction, ask both the collision repair facility and insurer which parts are being specified before repairs are completed.

Does Insurance Cover a Rental Car While Your Vehicle Is Being Repaired?

Possibly, but don’t assume rental coverage is automatically included.

Rental reimbursement is generally an optional auto insurance coverage. You can ask whether your policy will pay for a rental vehicle and whether there is a cap or limit on that coverage.

If another driver is responsible for the accident, their insurer may potentially address reasonable loss-of-use or rental expenses depending on the circumstances and applicable law.

Before renting a vehicle, ask the insurer handling the claim:

• Whether rental expenses are covered
• Your daily rental allowance
• The maximum total benefit
• When rental coverage begins
• When the insurer expects rental coverage to end

Knowing these details beforehand can help prevent unexpected expenses.

What If the Insurance Estimate and Body Shop Estimate Are Different?

A difference between estimates doesn’t automatically mean something has gone wrong.

An insurer may prepare its estimate before the vehicle has been thoroughly disassembled. The collision repair facility may later identify additional damage or repair procedures.

If there is a disagreement, ask questions.

Find out specifically what differs between the estimates. Is it labor time? Part selection? A repair procedure? Additional hidden damage? Diagnostic work? Calibration?

If you select a repair facility charging more than the appraised repair amount, you may be responsible for costs above that amount.

That makes communication between you, the repair facility, and insurer especially important before authorizing costs that may not be covered.

What Happens If the Car Is Declared a Total Loss?

Sometimes repairing a vehicle isn’t economically practical.

An insurer may determine that a vehicle is a total loss when its repair costs reach a certain threshold compared with its value, according to applicable state requirements and the insurer’s claim evaluation.

Instead of paying for repairs, the insurer generally determines the vehicle’s value and handles the claim as a total loss. When the cost of repairing an older vehicle exceeds its worth, an insurer may total the vehicle and pay what it was worth rather than repair it.

Total-loss rules and valuation procedures can vary by state, so review the insurer’s valuation carefully and ask how the settlement was calculated.

How Is the Collision Repair Shop Paid?

Payment arrangements vary.

An insurer may issue payment to you, pay the repair facility directly, or issue a payment involving multiple parties, such as you and a lienholder. You may also be responsible for your deductible and any repairs or upgrades you authorized that aren’t covered by insurance.

Before picking up your vehicle, ask the repair facility what amount you will owe and how the insurer’s payment is being handled.

Questions to Ask Your Insurance Company After an Accident

Insurance policies aren’t all the same. Instead of making assumptions, ask your claims representative specific questions about your coverage and claim.

Consider asking:

• Is the damage covered under my policy?
• What is my deductible?
• Can I choose my own collision repair shop?
• Does my policy specify OEM, aftermarket, or other replacement parts?
• Do I have rental reimbursement coverage?
• Is towing covered?
• What happens if additional damage is discovered?
• Does the insurer need to approve supplemental repairs?
• How will payment be issued?
• What happens if my vehicle is declared a total loss?

It is recommended that consumers understand issues such as repair-shop choice, replacement parts, rental coverage, towing coverage, and deductibles when evaluating auto insurance.

The Bottom Line: Insurance and Collision Repair Require Communication

So, how does insurance work when getting a car repaired after an accident?

In a typical claim, the accident is reported, the damage is documented, an initial estimate is prepared, a collision repair facility develops a repair plan, and the insurer reviews covered repair costs. If technicians discover additional accident-related damage during the repair, the shop may submit a supplement for the insurer to review.

Throughout the process, remember that the insurance company and collision repair shop have different roles. The insurer determines what it will pay under the policy and claim, while the collision repair facility determines how it believes the vehicle should be repaired.

As the vehicle owner, you should stay involved. Ask questions, understand your deductible and coverage, review the repair plan, and choose a qualified collision repair facility you trust.

Insurance claims can involve a lot of paperwork and communication, but understanding the process before repairs begin can make it much easier to know what to expect after an accident.

Get Back on the Road With a Collision Repair Shop You Can Trust

After an accident, you already have enough to deal with. Choosing the right collision repair shop can help make the repair process easier.

Our experienced collision repair team is here to help you navigate the repair process, from assessing accident damage and developing a repair plan to communicating with the insurance company. We focus on quality workmanship and restoring your vehicle properly so you can get back behind the wheel with confidence.

If your vehicle has been damaged in an accident, contact us today to schedule an estimate and take the first step toward getting your vehicle back on the road.