Debunked: What You Really Need to Know
When a car accident happens, emotions run high - and so does confusion. Between rushed phone calls, repair bills, and claims paperwork, it's easy to fall for misinformation. Unfortunately, many drivers make the wrong decisions after an accident because they believe myths about how auto insurance actually works.
To help you avoid costly mistakes, here are the most common auto insurance myths after an accident - debunked.
Myth 1
Truth: Not every accident leads to a rate increase.
Your premium may stay the same if:
Insurance companies evaluate rate changes based on fault, claim history, and the severity of the incident—not simply the fact that you filed a claim.
Myth 2
Truth: Skipping the report can backfire.
Even a small scratch or dent can lead to hidden damage—or the other driver changing their story later. If that happens, and you never reported the accident, your insurer may deny coverage.
Always report accidents, even minor ones, to protect yourself.
Myth 3
Truth: You always have the right to choose your repair shop.
While insurance companies might recommend a preferred partner for faster processing or guaranteed repairs, they cannot force you to go there.
Pick the shop you trust—your claim remains valid.
Myth 4
Truth: "Full coverage" is misleading.
Even with comprehensive and collision included, you may still face:
Understanding what your policy actually includes is essential before an accident occurs—not after.
Myth 5
Truth: Even when you're not at fault, using your own coverage may be faster.
Depending on the situation, your insurer may pay first and recover costs later from the at-fault driver's insurance. This speeds up the repair process and minimizes delays.
Myth 6
Truth: Fault is determined by insurers—not the police.
Police reports help, but insurance adjusters also analyze:
The official determination comes from the insurer's investigation.
Myth 7
Truth: This is a huge risk.
What looks like a small repair can easily turn into thousands of dollars. If the other driver backs out or the damage is worse than expected, you're left without insurance protection.
Always file a claim when someone else is involved.
Myth 8
Truth: A car is "totaled" when repairs cost more than a certain percentage of its value.
Even a vehicle that appears repairable might be declared a total loss if fixing it is too expensive compared to its market value.
Myth 9
Truth: Insurers use actual cash value, not purchase price.
Your car's payout after an accident is based on:
If you want guaranteed replacement coverage, you need specific add-on protections.
Accidents are stressful—but understanding how auto insurance really works helps you make smarter decisions and avoid financial surprises. The best strategy is staying informed, reviewing your policy regularly, and knowing what to expect before you're in a high-pressure situation.
When you need quality collision repair, trust a certified shop that works with all insurance companies and puts your needs first.
Get Your Free Repair Estimate
Regal Repair is an I-CAR Gold Class, OEM-certified auto body shop in Los Angeles offering certified collision repair, free estimates and a lifetime warranty. Visit the shop nearest you: North Hollywood, Van Nuys or Venice & Santa Monica. Get a free estimate or see all service areas.
Get your car repaired at Regal Repair
OEM-certified collision repair and auto body work at two Los Angeles shops: our North Hollywood auto body shop at 5430 Cahuenga Blvd, (818) 505-1442, and our Venice auto body shop at 2101 Lincoln Blvd, (424) 645-0005. See all collision repair services in Los Angeles or get a free estimate.
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