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Auto Improvements Following a Collision

Auto Improvements Following a Collision

​Is a collision an opportunity to improve your vehicle? No, that would be fraud. Fraud is illegal and increases the cost of insurance for all drivers in Ontario.

What Insurance Covers

If you have collision coverage, your insurance company will pay for your auto to be replaced or repaired.

If your insurer is paying for replacement, it will pay you the actual cash value of your automobile according to the condition it was in immediately before it was damaged. You are responsible for the deductible.

When your insurer settles your claim by repairing your damaged vehicle, you should end up with an auto that is as good as it was before being damaged. Your insurer is only responsible for fixing the damage caused by the collision. 

What You Cover

If your vehicle is made better than it was before the collision, you may have to pay for the improvements. For example, if a rusty door panel that was dented in a collision is replaced with one that is not rusty, you may be expected to contribute. 

Likewise, if you ask the mechanic to do additional work on your vehicle that is not directly related to the collision damage, you must pay for it.