Can You Repaint Your Car Using Insurance Claim Money?

Whether you've been involved in a fender bender or a serious car accident that requires restoring and repainting your vehicle, you'll need to make sure your insurance provider will cover the cost of the paint job. Some insurance companies are very particular about what they will and won't cover in the event of an accident so even a minor paint job could end up having to be paid for out your own pocket.

Providing as much proof of the damage as possible and filing a claim accurately may increase your chances of having your car repainted at no cost to you. However, using claim money that was meant for repairs to repaint your car could constitute fraud. Here's what you need to know:

When Insurance Covers a Paint Job

If your car will need a paint job, you'll need to get an estimate for the repainting work and have the job approved by your insurance agent. If you end up receiving funds for another repair job and choose to use that money to pay for a paint job instead, you would be guilty of insurance fraud. Review your insurance policy to find out if custom paint jobs are covered.

Your insurance company has to agree on all work that will be performed to repair or restore your vehicle, or you won't be eligible for any type of reimbursement. The first step for ensuring that the insurance company will cover the costs of repainting your vehicle is to file your claim accurately and indicate all damage that demands the car will need to be repainted.

Filing a Claim Accurately to Cover a Paint Job

Fill out your insurance claim forms as thoroughly and accurately as possible and include pictures when you can. You will need to wait until your claim is approved to find out if the cost of a paint job will be covered when you head to the body shop. If the insurance company will not be covering the paint job, you will be responsible for paying for the entire costs out of pocket. You should only authorize the repainting job when you have determined how much it might cost you, or if the costs will be covered by the insurance company.

Many body shops will work directly with your insurance agent to coordinate the paperwork needed to approve the claim for repainting work and other details. If the insurance company thinks it is a legitimate claim, they will pay the body shop directly for the work. If not, you will be responsible for covering the costs of the paint job and will need to decide if you want to go ahead with it.

Sources:

Auto Insurance Advantage - Will a Custom Paint Job Change Insurance Premiums?

Coast Auto Insurance - Accidents & Claims

United Services Automobile Association - Frequently Asked Questions