Does my auto insurance cover damage caused by my own negligence?

Negligence is a critical factor in determining auto insurance coverage. Throughout your life, you’ll find yourself in all kinds of situations.

However, when it comes to auto insurance payouts, you may wonder who is at fault if you rear-end somebody who slammed on their brakes, T-boned you at a junction, or even if you reversed into your garage by accident.

Fortunately, most auto insurance does cover damage caused by negligence in certain cases, even when you cause the damage, but there are exceptions. Learn more about your options regarding car insurance coverage.

Does my auto insurance cover damage caused by my own negligence?

Whether your auto insurance coverage pays for damage caused by your negligence depends on the type of insurance coverage that you have. And there are two main policy types you need to know about for this situation – collision and liability coverage.

What is the difference between collision and liability insurance when covering damage caused by my own negligence?

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There are a few different types of auto insurance, but in negligence cases, two come into play: collision and liability.

• Collision Coverage: This coverage protects you when your vehicle is damaged in an accident, regardless of fault (read our “Does my auto insurance cover damage to my own car if I am at fault in an accident?” for more information). If negligence causes an accident, collision coverage should cover your vehicle’s repair costs, subject to your policy’s auto insurance deductible and limits.
• Liability Coverage: Liability coverage safeguards you when you’re at fault for an accident, causing property damage or bodily injury to others. However, it doesn’t cover damages to your vehicle due to your negligence.

If you’re in an accident and damage your vehicle, you’ll need collision insurance to help cover the cost of repairs.

How do auto insurance providers determine negligence with damage to your own vehicle?

Negligence, by definition, refers to a driver’s failure to exercise reasonable care while operating their vehicle. Negligence examples include speeding, distracted driving, or breaking traffic rules, resulting in an accident. Insurance companies scrutinize accident circumstances to assess if negligence played a part.

But what happens if the fault of an accident is your own, and you know it is? What if you hit a fence or a sidewalk? Does auto insurance cover hitting my own car against a wall or another vehicle? Here’s what you need to know.

Comprehensive vs. collision coverage: Which is better for damage due to negligence?

If you have collision coverage and cause damage to your own car, such as driving into a fence, then your policy will cover the cost of repairing the damages. However, you will still need to pay your deductible. If that’s $500, you must pay this before your policy pays out.

And that’s the main difference between comprehensive vs. collision coverage.

Comprehensive and affordable liability auto insurance policies won’t tend to cover the costs of damages in the same way.

You can add exceptions or optional extras to your policy, such as Own Damage (OD) Insurance, but it depends on whether it’s available via your provider.

Understanding Policy Limits and Deductibles With Damage Caused By Your Own Negligence

Knowing your auto insurance policy limits and deductibles is crucial when evaluating coverage for self-inflicted damages. Your policy’s limit is the maximum amount your insurer will pay for a covered claim. If damages exceed your policy limit, you’ll be responsible for the remaining cost.

Deductibles also influence how much you’ll pay for damages out-of-pocket. A deductible is an amount you pay before your insurance coverage begins. Higher deductibles can result in lower insurance premiums, but be ready to cover more repair costs if negligence causes an accident.

Final Thoughts on Auto Insurance Coverage for Damage Caused By One’s Own Negligence

Whether your auto insurance provider covers damage caused by your own negligence depends on the type of insurance policy you’ve taken out. Therefore, you must take the time to think about whether this is coverage you’ll need before taking out the policy.

Whether you’re accident-prone, easily distracted, getting older, or simply want the safety layer to protect you when accidents inevitably occur, ask your car insurance company if you have the right coverage.