This Vehicle Expense Cost Me Over $500, and My Auto Insurance Didn’t Cover a Dime

This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.

Sometimes, you can’t turn to your auto insurer when damage to your vehicle occurs. Read on to learn more about. [[{“value”:”

Sometimes, you can land in a situation where you’re on the hook for a costly car repair bill — even if your car isn’t old and you didn’t do anything reckless to cause it to get damaged. Such was something I experienced not so long ago.

My car ended up needing a repair that cost over $500. And even though I had auto insurance at the time (and of course still have it now), my insurer didn’t pick up so much as a dollar of the tab. But there’s a big reason why.

When the cost of your repair is less than your deductible

The repair my car wound up needing was a windshield replacement. An errant rock flew into my windshield during a routine drive on the highway, and it must’ve hit at just the right angle to crack my windshield beyond repair.

Now if you have a newer vehicle, you should know that the cost of replacing your windshield could be more expensive than expected. Kelley Blue Book says that thanks to advanced technology in newer vehicles, a new windshield can cost upward of $1,000. However, if you have an older car, you can expect to pay something in the range of $300 to $600 for a typical vehicle windshield.

My repair fell into the top end of that range, costing over $500 but not quite $600. But it didn’t really matter — either way, my auto insurance company wasn’t paying the bill. And the reason is that I didn’t ask it to.

You may be thinking “Um, what’s wrong with you? Why wouldn’t you file a claim?” But the reason boils down to the fact that my auto insurance policy comes with a $750 deductible. Since that was more than the cost of my repair, filing a claim wouldn’t have helped me financially at all.

Since that incident, I’ve thought about trying to lower my deductible. But going that route would mean paying a higher insurance premium.

Since your premium is something you pay off the bat and your deductible only comes into play when you have to file a claim, I prefer to take the chance on a higher deductible. But in this situation, it cost me to some degree.

That said, I don’t even know if I would’ve filed a claim against my insurance had my deductible been, say, $500. I didn’t spend that much more to replace my windshield, and filing a claim to get reimbursed $50 or so might’ve sent my premium rates rising the following year.

Always have savings on hand

Auto insurance can serve as a means of financial protection when you own a vehicle. But don’t just fall back on your insurance. Rather, always make a point to keep some money in your savings account in case you end up having to shell out money to meet a car insurance deductible — or in case you’re looking at a repair that’s less costly than what your deductible entails.

Of course, I’m grateful that my car didn’t sustain more damage than a cracked windshield. The process of getting that fixed couldn’t have been easier — a company pulled into my driveway and repaired my car right there so I didn’t even have to leave my street. I’m also grateful that I had money in my emergency fund I could dip into — because really, nobody wants to go into debt over an errant rock.

Our best car insurance companies for 2024

Ready to shop for car insurance? Whether you’re focused on price, claims handling, or customer service, we’ve researched insurers nationwide to provide our best-in-class picks for car insurance coverage. Read our free expert review today to get started.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

“}]] Read More