Picture this. Your teen son just got his driver’s license. You did what you were supposed to do and added him to your car insurance policy. Now, he gets in his car to go to school. In a big rush, he accidentally shifts into drive instead of reverse. Suddenly, he crashes right into your house!
You feel glad because you already added the new driver to your car insurance. However, a big question remains. Who will pay for the damage to the house? Will your car insurance pay, or will your home insurance step in?
Let us clear up the confusion.
Why Car Insurance Will Not Pay for Damages to the House
First, you must understand how car insurance works. When you buy auto liability insurance coverage, it pays for damage you cause to other people’s property. Therefore, it will not pay for damage to your own property. Because you own the house, the liability part of your car insurance policy excludes it. Your car insurance will never write a check to fix damages to your own garage or living room.
Your Home Not Car Insurance Saves the Day
Instead, your home insurance policy will cover the damage to your house. Standard home policies cover damage caused by vehicle impact. Consequently, you will need to file a claim with your home insurance company. Keep in mind, you must pay your home deductible before the policy pays for the actual repairs. Thus, it is always a good idea to get repair estimates from reputable contractors before filing the claim.
What About the Damaged Car?
Even though car insurance does not cover the house, it still plays a role in this accident. If you bought collision coverage, your car insurance will pay to fix the damaged car. Again, you will have to pay your auto insurance deductible first. As a result, you will end up paying two separate deductibles since you must file two separate claims.
Find the Home or Car Insurance Coverage Today
Dealing with accidents always feels stressful. For this reason, you should work with a trusted expert to make sure you are covered. A local independent insurance agent like AlphaSure Affordable Insurance Services can help you review your options. They can shop around for car insurance and home insurance rates for you. Because they work with many different companies, they easily find policies that fit your budget.
