MONEY Insurance

The Best and Worst States to Have a Fender Bender

fender bender
Getty Images

Even just one car accident can send your insurance premium soaring, a new survey finds. Especially if you live in Massachusetts, California, or New Jersey.

Filing just a single claim for more than $2,000 after a car accident can raise your auto insurance premium by more than 40% on average, according to a new study by insuranceQuotes.com, and you can expect your premium to nearly double if you file two.

The study looked at insurance premiums for a college-educated, 45-year-old woman who has never filed a claim. For that driver, a bodily injury claim will raise premiums by 45% on average, while a property damage claim will hike them by 41%. However, a comprehensive claim, such as theft or damage from falling objects, will cause only a 2% price increase.

Typically, sharp premium hikes kick in only if the accident is the driver’s fault, the study notes. If the other driver’s policy covers the claim, a policyholder will likely avoid such higher costs.

Because of different regulatory environments, the penalty varies widely depending where you live. In Maryland insurance premiums increase an average of 22% after one accident claim, the lowest hike in the nation. That’s an enviable number for drivers in Massachusetts, where premiums are closely tied to driving records. Bay State residents face a 76% increase, the highest in the nation.

For consumers, the lesson is simple: After a minor accident, you might be better off covering repair costs out of pocket rather than tapping your insurance policy.

“If there are injuries involved, you almost certainly want to file a claim,” says Michael Barry, vice president of media relations for the Insurance Information Institute, adding that bodily injury costs are often five times the payout of a property damage claim. “If it’s a fender bender, you might not want to.”

By dishing out the cash to repair a bumper, you could avoid the long-term financial hit of years worth of higher premiums. (One possible exception: Look at your policy to see if you have accident forgiveness, advises Barry.) You can run the numbers with insuranceQuotes’s “Should I Make a Claim?” calculator.

In these 10 states in particular, you might be better off taking the hit.

States With the Highest Premium Hikes After a Single $2,000 Claim
State Average annual auto premium Average increase
Massachusetts $977 76.3%
California $750 75.4%
New Jersey $1,220 62.4%
North Carolina $611 51.7%
Minnesota $719 47.9%
South Dakota $557 44.8%
Iowa $561 41.6%
New Hampshire $717 39.5%
Washington $810 39.5%
Virginia $692 37.5%

Whereas in these 10 states, a single accident won’t be as costly.​

States With the Lowest Premium Hikes After a Single $2,000 Claim
State Average annual premium Average increase
Maryland $996 21.6%
Michigan $1,049 23.4%
Montana $658 24.6%
Oklahoma $737 24.6%
Mississippi $748 25.9%
Nebraska $617 27.6%
New York $1,152 27.8%
Missouri $684 27.9%
Alabama $659 28.6%
Maine $582 29.1%

Sources: Average premiums via National Association of Insurance Commissioners (NAIC); insuranceQuotes.com.

Though many factors go into determining your premiums, the number and severity of insurance claims is a starting point for insurers, which then factor in variables like your age, driving record, and type of vehicle.

If you live in Detroit, any increase to your premium will add to an already substantial financial burden. According to carInsurance.com, drivers in the 48227 zip code in the Motor City already pay $5,109 annually, the highest average premium in the country. You can check out the website’s car insurance calculator to see how your zip code compares to that of Normal, Ill. (61761), whose residents only pay $827, the lowest in the country.

UPDATE: This post was updated to add more details about the study and to clarify the averages.

TIME Money

Why You Might Need More Car Insurance Than You Have

Car accident
Woman on mobile phone after car accident Zero Creatives—Getty Images/Image Source

That fender-bender could be more of a headache than you think

Being in a car accident, even if you’re lucky enough to escape without injury, still stinks — especially if it isn’t your fault. But what’s even worse than the inconvenience and the hassle factor is the reality that, in many states, you might not be completely covered by insurance, even if you’re a responsible driver who carries insurance.

That’s because there’s often a gap between the minimum states require drivers to carry and the amount that would be necessary to cover the cost of an accident, especially if anyone in your car is injured. Even something as minor as taking an ambulance ride to the hospital to get checked out can run into the hundreds of dollars, and costs obviously escalate depending on the severity of any injuries.

Personal finance website WalletHub.com just put together a ranking of the financial risk you face when you get behind the wheel, analyzing all 50 states and the District of Columbia to find out the legal minimum of insurance coverage drivers must carry as well as how many drivers in that state don’t bother to get insurance.

In short, stay out of of Florida and Oklahoma. Florida’s insurance requirements are lower than most other states, and 24% of drivers on the roads there are cruising around without insurance (which, yes, is illegal). In Oklahoma, requirements aren’t as low, but a whopping 26% of drivers don’t bother buying insurance. In Tennessee, Michigan, New Mexico and Mississippi, more than one in five drivers have no insurance.

How can you protect yourself? Unfortunately, it’s likely to cost you.

“In most states, drivers can purchase uninsured motorists coverage to cover their own bodily injuries and/or property damage if the at-fault driver has no insurance,” says WalletHub managing editor Karl Eisenhower.

In fact, in 21 states, you’re required to carry this type of coverage. In some states, you have to carry this insurance to cover property damage costs, while others make you carry coverage for medical costs if you’re hit by an uninsured driver. Eight states make you carry both. Drivers also have the option — and in a handful of states, the obligation — of buying insurance for personal injury protection or medical payments. “[These] will cover your medical bills after an accident regardless of fault,” Eisenhower says. “If you carry one of these . . . you can be certain any medical bills will get paid quickly.”

In states like Florida, where the minimum liability a driver has to carry is a mere $10,000 in coverage per injured person, or $20,000 per accident, getting into an accident with somebody who does have coverage but not enough of it could be a concern, too.

“Underinsured motorists coverage will protect you if your damages exceed the limits of the at-fault driver’s liability policy,” Eisenhower says. In the states of California, Massachusetts, New Jersey and Pennsylvania, a driver only has to have $5,000 worth of coverage for property damage — hardly enough to make you whole if you’re driving a luxury car or your vehicle is totaled.

“Just because someone doesn’t have sufficient insurance doesn’t reduce that person’s responsibility if he or she causes an accident,” Eisenhower adds. Unfortunately, this means you’d have to spend the time and money suing them — and be out-of-pocket for potentially thousands of dollars in the meantime — before getting compensation. If you have extra coverage for uninsured or underinsured drivers, “suing to reclaim costs is the insurance company’s headache, not yours,” Eisenhower points out.

MONEY Insurance

Google May Help You Get Car Insurance

Evidence is mounting that Google will launch an auto-insurance comparison service in the US. A perfect choice for your driverless car!

MONEY Insurance

Why Even a Fair Insurance Claim Will Send Customers Packing

The insurance claims process is so painful and outdated that about half of customers who confront it bolt no matter what.

The financial services industry has been among the slowest to embrace the mobile and other technologies that many consumers crave. Within the industry, insurers probably have been slowest—and their old-fashioned ways are stirring a high level of churn.

Insurance customers are generally pleased with their provider. Only 14% of those who submitted a claim in the past two years are unhappy with how it was handled, according to a report from Accenture. As you might expect, a high rate of those—83%—plan to switch providers. But even among the vast majority who filed a claim and were satisfied, 41% say they are likely to switch insurers in the next 12 months, the report found.

Why would satisfied customers switch? In general, their claims experience, while satisfactory, left them feeling it should have been better. “The bar has been raised and insurers now need to handle claims in a way that not only satisfies policyholders but also differentiates them from other insurers,” says Michael Costonis, global head of claims services at Accenture, a research and consulting firm.

Technology exists that would greatly streamline the claims process, he says. Consumers understand that, and when they file a claim and confront the old way of doing things they resolve to look for something better. For example, Costonis says, in the case of an auto accident, sensors could summon assistance automatically, notify a garage, and get a tow truck on the scene—all without a phone call. Your car could be fixed and delivered to your door, and if any money was due to you it might be put in your account without the tedious paperwork.

Customers expect quick claims and fair pricing. But they also want transparency and this is where technology can make a big difference. “More and more, especially with younger customers, this takes the form of providing anywhere, anytime access online or through mobile apps,” Costonis says. In the study, 44% said they would switch providers to be able to use digital channels to monitor the claims process.

Broader use of technology could help in other ways too. Three in four customers are willing to share more personal information in order to get better rates, the study found. Insurers could easily gather information about the condition of cars and customer driving habits. They could also gather information collected by smoke, carbon monoxide, humidity, and motion detectors. Such data could help them help their customers manage risks and wind up filing fewer claims—and that is the Holy Grail because customers hate the process and insurers lose a high percentage of those who file a claim no matter what.

Related: How to make sure you have enough insurance coverage

MONEY Insurance

Why Millennials Resist Any Kind of Insurance

Young adults are the most underinsured generation of our time, which makes sense—up to a point.

Millennials are the most underinsured generation alive today—which makes a certain amount of sense. They have relatively few assets or dependents to protect. Still, the gaps in coverage are striking and offer further evidence that this generation has been unusually slow to launch.

Roughly one in four adults aged 18 to 29 do not have health insurance, twice the rate of all other adults, according to a survey from InsuranceQuotes.com, a financial website. (Other surveys have found lower uninsured rates, but this age group is still the most likely to go without.) Millennials are also far less likely to have auto, life, homeowners, renters, and disability coverage.

Young adults have always been slow to buy insurance. They often feel invincible when it comes to potential health or financial setbacks. But something additional appears to be at work here. This generation has famously overprotective parents who awarded them trophies just for showing up. Millennials may view moving back home or calling Mom and Dad for a bailout as their personal no-cost, all-purpose insurance plan.

Millions of young adults routinely boomerang home after college or get other family financial support. The trend is so broad that psychologists have given this new life phase a name: emerging adulthood, a period that lasts to age 28 or 30. MONEY explores this trend, and its costs, in the September issue reaching homes this week. Remarkably, the parents of boomerang kids don’t seem to mind providing the extended support.

A quarter of parents supporting an adult child say they have taken on additional debt; 13% have delayed a life event, such as taking a dream vacation; and 7% have delayed retirement, the National Endowment for Financial Education found. Yet 80% of such parents in a Bank of America Merrill Lynch survey say helping is “the right thing to do,” and 60% are willing to work longer, 40% to go back to work, and 36% to live with less if that’s what it takes to help their adult kids.

“Millennials have had very supportive parents throughout their life,” says Laura Adams, senior insurance analyst at InsuranceQuotes.com. “When you don’t have a fear of the unknown, a fear of life’s what-ifs, you are not likely to think about insurance.”

Yet young people overlook certain types of insurance at their peril—even though these policies may be relatively inexpensive. Most striking is how many skip health insurance, even though the Affordable Care Act mandates coverage and allows children up to age 26 to remain on a parent’s plan. Millions more young people now have health coverage as a result, recent studies have found, and their uninsured rate has dropped. But, still, as many as one in four still go without.

This may be classic pushback against a law young adults see as unfair. They understand that their insurance premiums subsidize the health benefits of older Americans who are far more likely to need care. Yet if Mom and Dad won’t pick up the bill, a visit to the ER can cost $1,000 or more for even a simple ailment. Things get much more expensive for broken bones and other treatments that even the young may need. Among other findings:

  • 64% of millennials have auto insurance, compared to 84% of older generations. Many millennials may have decided to skip car ownership. But if you rent a car or borrow one from your roommate, you have liability. It probably pays to have your own policy, which might cost $30 a month.
  • 10% of millennials have homeowners insurance, compared to more than half of those aged 30 to 49 and 75% of those 65 and older. Fewer millennials own a house, for sure. But this generation isn’t buying renters insurance either: only 12% have it. Renters insurance is cheap: $10 to $15 a month, and it comes in handy not only when someone steals your bike from the storage area but also if Fido bites a neighbor.
  • 13% of millennials have disability insurance, compared with 37% of those 30 to 49. This kind of coverage costs around $30 a month and may seem unnecessary. Yet one in three working adults will miss at least three months of work at least once in their life due to illness, Adams says, adding, “Anyone can throw out their back.”
  • 36% of millennials have life insurance, compared with 60% of those 30 to 49. Again, this coverage is relatively cheap: around $20 a month for $500,000 of term life. If you have no dependents you might skip it. But if you have debt that Mom and Dad co-signed, you should have enough coverage to retire the debt. It’s only fair, given your parents’ years of extended financial support.

 

 

MONEY Autos

The Least and Most Expensive States to Drive

Car driving into the Tetons, Wyoming
At least the scenery is great in the state where drivers tend to log in the most mileage on the road, Wyoming. Rolf Richardson—Alamy

Curiously, a state with low auto insurance premiums and fairly cheap gas is named the most expensive in the nation for operating a car.

Bankrate.com released the results of a new study about the least and most expensive states to own a vehicle, and a few of the places featured at the pricey end may seem particularly puzzling. Using state-by-state data concerning driver spending on car repairs, insurance, and gas gathered from CarMD.com, GasBuddy.com, the Bureau of Labor Statistics, and the National Association of Insurance Commissioners, Bankrate researchers found:

• The Midwest dominated the least expensive end of the cost spectrum, with Illinois, Ohio, and Iowa named the three cheapest states. All averaged under $2,000 annually for the trio of car operating costs included in the study, with Iowa the cheapest of all—$1,942, 13% below the national average ($2,233).

• Drivers in North Carolina, California, Washington, D.C., and New Jersey spend the most on repairs, all averaging $390 or more annually. New Jersey has the highest average of all at $393, which is 11% higher than the national average. A few hours north in Vermont, meanwhile, drivers average just $270 in annual repairs.

• Average car insurance premiums in Washington, D.C., New Jersey, and Louisiana top $1,200 per year, which is at least $500 more than a half-dozen other states in the country.

• Several of the top five most expensive states to operate a car may come as a surprise: Wyoming is the priciest overall ($2,705), followed by Louisiana ($2,555), Florida ($2,516), Mississipi ($2,487), and New Jersey ($2,421).

The reason that Wyoming is at the top of the list pretty much boils down to how much drivers pay for gasoline. It’s not even that the state’s gas prices are all that high—drivers in Alaska, Hawaii, New York, California, and Connecticut, among other places, routinely pay more per gallon than folks in Wyoming. Instead, Wyoming drivers pay more annually for gasoline because they tend to drive so much—68% more than the average American. The data used by Bankrate indicates that folks in Wyoming spent $1,588 on gasoline last year, and $1,643 the year before that. In the 2014 study, the state where drivers spent the second highest amount on gas was Alabama, with an average of $1,237. The average driver in Washington, D.C., meanwhile, spent an average of only $618 on gasoline in a year’s time.

Drivers in D.C. don’t get off so easily in other areas, however. The average car insurance policy there runs $1,273 annually, vastly more than premiums in Iowa, Ohio, Idaho, Wisconsin, Maine, and both of the Dakotas, which all average under $700.

What’s more, D.C. drivers are subjected to many costs that aren’t factored in to the Bankrate study, and that drivers in, say, Wyoming, rarely have to worry about. Like parking. A 2014 NerdWallet report about the worst 10 U.S. cities for parking featured Washington, D.C., for its typical costs ($19 per day, $270 per month) and the total amount collected in parking fines (around $100 million each year).

For that matter, the Bankrate study, limited as it is to just three data points, leaves out quite a few of the costs involved in owning a car. Like, you know, the actual cost of the car. Once the price of buying or leasing a vehicle is adding in, along with things like depreciation, maintenance, and gas, the average sedan costs $8,876, according to the latest AAA estimates.

And hey, owning a car in Wyoming is not necessarily as expensive as the Bankrate study makes it out to be. The average driver pays more there because he is on the road much more than his counterpart in Washington, D.C., New York, New Jersey, Nevada, and Pennsylvania, where the averages in annual gas expenditures are all under $800. To some extent, Wyoming drivers are victims of their state’s geography and development—stuff there is far away, what are you gonna do? But unlike in other states, where impossible-to-get-around high auto repair and insurance costs inflate overall driving expenses, at least people in Wyoming theoretically have the power to dramatically rein in the price of having a car, provided their work schedules and personal lives allow it. Just drive less.

MONEY Autos

WATCH: Hail Yes! Car Dealers Slash Prices on Storm-Damaged Vehicles

Severe hailstorms in the West and Midwest have one benefit for bargain-hunters: Discounts on damaged cars.

MONEY car insurance

Will Your Auto Insurer Punish You for Charging for a Lift?

140529_FF_NerdWallet_Lyft_1
A Lyft car operates in San Francisco. courtesy of Lyft

In many places, you can pick up extra money by picking up passengers when you're on the road. But watch what that does to your insurance costs.

If you’re low on money and have a flexible schedule, signing on to be a ride-share driver for a company like Uber, Lyft, or Sidecar may seem like the perfect solution. You can connect with passengers via an app whenever you’d like and pick them up in your own car–becoming a player in the so-called sharing economy. By lowering barriers to entry, ride-sharing companies are cutting costs for both users and drivers.

They’re also throwing insurers for a loop. The ride-share industry’s rapid development has resulted in a dearth of adequate–and affordable–auto insurance products. Though Uber, Lyft, and Sidecar are trying to fill the gaps, there are still a few things you should know before driving for one of them.

What Coverage Do You Need?

Standard personal auto policies will cover drivers who carpool, but State Farm spokesperson Angie Rinock says, “when the driver of one of our insured vehicles offers rides for payment, these rides may not be considered to be on the same basis.” That is, although Rinock emphasizes that the company considers each claim individually, insurers often decline to cover damages drivers incur when ferrying around passengers for Uber, Lyft, or Sidecar.

To address this issue, ride-sharing companies routinely provide drivers with insurance–up to $1 million in coverage per accident. As Lauren Altmin, a representative for Uber, explains, “this policy drops down to primary coverage in the event that a driver’s personal auto insurance does not apply for any reason.” Still, this level of coverage is available only while you’re actively transporting passengers.

In response to last January’s deadly crash involving an Uber driver, Uber and Lyft now offer additional, lower-limit policies that apply any time a driver is logged into the app. Sidecar does not. For your own vehicle, Uber, Lyft, and Sidecar offer a combination of contingent collision and comprehensive policies, but typically with a deductible of $1,000 or more–and only if you’re giving a ride. If your car is stolen while you’re between passengers, you’re out of luck.

What Problems Could You Still Face?

None of these plans are much help if your personal insurance drops you, as has happened to some drivers. Few insurers are completely comfortable with ride-sharing programs. Rinock recommends that drivers pursue a purely commercial vehicle policy, but these can also present difficulties.

Adrian Anzaldua, a former Lyft operator in San Francisco, states that the only commercial policies he could find were prohibitively expensive: “I contacted the company through which I’d originally had a private policy. Their commercial department quoted me $8,000 a year for coverage. Most of the competing bids were in the same ballpark.” Premiums eventually forced Anzaldua out of the business.

What You Can Do to Protect Yourself

Short of a commercial policy, there are no perfect solutions for ride-sharing drivers at this point. That said, companies have beefed up their coverage in response to driver complaints. The between-ride, collision, and comprehensive policies are relatively new for Lyft and Uber, and because of them, Anzaldua adds, “I have referred friends to work for both.”

Lyft has also partnered with Metlife to improve its existing policies, and insurers like Progressive are researching programs to benefit ride-share operators. But in the meantime, you’ll have to navigate your own way between company and insurance regulations.

 

MONEY Insurance

5 Things to Know About Umbrella Insurance

Umbrella insurance covers you for liability risks you may not even have been aware of.

Even if you already have insurance for your home and car, you may not be adequately covered. This policy can help.

1. Without it, you could lose everything

If you cause a car accident and the other driver sues, your auto insurance covers you up to your personal-liability limit, which is likely between $100,000 and $300,000. Same goes for your homeowners insurance if the mailman slips on your steps.

An umbrella liability policy pays for settlements and legal fees above your limit. Without this insurance, your wages and assets are at stake (though in some states, retirement funds, pensions, and your home are excluded).

2. Liability risks are everywhere

“More than 80% of umbrella losses are auto-related,” says Ed Charlebois of Travelers Insurance. Even if you’re the safest driver, your teen probably isn’t.

Redoing your kitchen? Your general contractor may not adequately vet subcontractors for workers’ comp or liability.

Host a lot of parties? If a guest gets into a drunken-driving accident, the victim can come after you. Got a pool, hot tub, or boat? Employ a nanny or a housecleaner? Then you have risk factors.

3. You’re insuring against the worst-case scenario

The median jury award for vehicular accident liability cases is $21,000, found Jury Verdict Research. But the average is $306,000 — so some settlements are much, much higher. That’s why many financial planners say an umbrella policy is a must for those with significant net worth.

“Insurance is there to stop an accident from being a life-changing event financially,” says Redondo Beach, Calif., CFP Scott Leonard.

4. A lot of coverage costs very little

A typical homeowner with two cars can get a $1 million policy for $250 to $400 a year, reports the Insurance Information Institute.

“My rule of thumb is for clients to have coverage equal to one to two times their exposed net worth,” says Franklin, Mich., financial planner Bert Whitehead. (By “exposed,” he means assets vulnerable in your state.) That way you are not just shielding your money, but ensuring that the insurer will mount an aggressive defense.

5. You may need to juggle coverage first

Umbrella insurance usually requires specific liability limits on the policies it’s piggybacking — such as $300,000 per person on auto and $300,000 on home. So you may have to boost your coverage. Plus, some carriers extend an umbrella only over policies they have issued, says Jim Kuryak of Niagara National Insurance.

On the upside, bundling with one insurer can offset the added cost; it can shave as much as 20% off home and auto premiums.

MONEY car insurance

Auto Insurance: Downshift Coverage with Caution

Photo: Adam Voorhees

Downshifting your auto insurance premiums may leave you under protected. Watch out for these three holes in your policy.

You may have noticed an acceleration in your car insurance costs recently.

For the average driver, premiums are up 23% over five years vs. 7% for overall inflation. A 40-year-old man now typically pays $1,510 and up to $2,700, says Insure.com.

Perhaps you’re thinking that if you just drive down your limits a bit, or switch to another insurer, you’ll recoup some of the increase. Not so fast, Andretti: “You might save a few hundred bucks, but what will you cost yourself in protection?” says Mark Romano of the Consumer Federation of America.

Make sure cutting costs doesn’t cut coverage in these critical areas:

Liability

If you’re in an accident, the liability portion of your policy covers damages you cause to another car, as well as that party’s medical bills, lost wages, plus pain and suffering. States require $10,000 to $50,000 in coverage, but you probably need more with increasing medical costs and lawsuits. If the injured party’s bills top your limit, he can go after your assets, says Romano.

Meanwhile, as this is the most costly part of the policy, trimming coverage here may have seemed like easy savings. Or the agent who sold you the policy may have skimped to make the quote look competitive.

Protect yourself: Analyst Laura Adams of InsuranceQuotes.com suggests buying a value equal to your nonretirement savings, as that’s what would be at risk in a lawsuit. At the least, Romano advises, get $100,000 per person/$300,000 per incident.

“I’ve seen too many auto injury cases,” he says; “$100,000 for a settlement is nothing.” Rates are based on your risk as a driver.

Uninsured motorist

One in seven drivers is uninsured, the Insurance Research Council says. Additionally, 20% of insured drivers buy only the minimum liability required, reports data firm ISO. Uninsured and underinsured motorist coverage helps with your tab if one of these folks hits you.

Only 15 states mandate this coverage, however, and UM/UIM insurance is so confusing, says advocacy group United Policyholders, that many people underestimate their needs.

For one thing, in some states you buy the two pieces together; in others, they’re separate. Then there’s “set-off”: Say your family incurs $75,000 in damages in an accident. The at-fault driver has $25,000 of liability; you have $50,000 in UIM. You’re fully covered, right? Nope. In 27 set-off states, insurers subtract the other guy’s liability from your UIM. The remainder is the max you can collect, leaving you $25,000 short.

Protect yourself: UM/UIM limits of $100,000 per person and $300,000 per accident would cover expenses in all but 5% of accidents, according to ISO. However, if you live in a set-off state — your insurer can tell you — you may want higher limits to account for the other driver’s coverage being subtracted.

UM rates depend on the percentage of drivers who go bare. In Fort Lauderdale, Fla. — a state where a hefty 24% are uncovered — upping limits from $50,000 per person and $100,000 per accident to $100,000/$300,000 raises that part of the annual premium $68, to $340, says agent Susie Krix.

Repairs

You probably figure that if your car needed repairs, your policy would pay for new parts. Not necessarily. Insurers increasingly require body shops to use cheaper recycled or aftermarket parts. Consumer advocates warn that certain used or knockoff structural parts (such as bumpers) don’t perform as well as originals.

Trade group Property Casualty Insurers Association of America (PCI) counters that insurers don’t require shops to use aftermarket parts that would compromise safety — though, in January, the California Department of Insurance said an investigation found defective safety-related parts like hood latches being used.

PCI also says premiums would rise 2% if aftermarket parts were banned.

Protect yourself: Read the “limit of liability” section of your policy. Most insurers pay for new parts on cars up to a year old, some up to three years. A few don’t use aftermarket parts at all, says analyst Greg Horn of repair data firm Mitchell.

Yours does? Tell the body shop you prefer original parts; the insurer may approve it. Or see if your insurer sells a rider to extend the time factory-fresh parts are covered. This adds about 10% to the comprehensive and collision premium, but can save more if it prevents a return to the repair shop.

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