January 2018


What is Scratch and Dent Insurance

The coverage of scratch and dent insurance is to financial protect the vehicle owner from minor blemishes on the finish of the vehicle. This is coverage for repairs on damage from everyday use of the vehicle and not from accidents or collisions. Below we have compiled some information including what is covered in scratch and dent insurance.

What Constitutes a Minor Blemish?

  • When a section of the paint is chipped away and is 150 mm or 5.9” and smaller in diameter.
  • When a scratch is no longer than 150 mm or 5.9”.
  • All dents must be 150 mm or 5.9” or smaller in diameter.
  • Scuffs on the paint have to be 150 mm or 5.9” or smaller in diameter.

The total amount of the repairs must not exceed the upper limit as stated in the policy for the damage to be repaired. Repairs to glass windows and sunroofs are excluded from this coverage. Only damage to the exterior of the vehicle is covered with this type of insurance policy.

What Types of Vehicles can be covered by Scratch and Dent Insurance?

  • Most any motor vehicle to be utilized for personal use.
  • The insurance policy must be taken out within 30 days of the vehicle being purchased.
  • On average the vehiclecan be 2 to 7 years old depending on the policy and insurance company.
  • The maximum amount of mileage on the vehicle to be covered is from 20,000 to 70,000 miles depending on the type of coverage and the insurance company.
  • Only standard paint jobs or finishes like from the factory are covered with scratch and dent insurance. Custom paint jobs and non-s standard finishes are not covered.
  • Once a policy is written and remains in effect the vehicle can be covered until it is 30 years old under most policies as long as the premium is paid.

What Vehicles are not covered by Scratch and Dent Insurance?

  • For hire vehicles like cabs and Uber vehicles cannot be covered.
  • Commercial vehicles over 3,500 kg, 7,716 lbs or 3.9 tonnes.
  • Quad vehicles and motorcycles.
  • Any vehicle used to transport goods.

Time to Make a Claim of Damage

  • Most policies are written where a claim must be made between 15 or 30 days of the damage occurring.
  • No preexisting conditions on the exterior of the vehicle are covered.
  • The exact time allowance will be clearly stated in the policy.

How Long are the Repairs Guaranteed for?

  • The time of protection against a bad repair depends on the policy.
  • Most repairs are covered from 3 to 5 years with the cost of the repair being completed again as part of the insurance coverage as stated in the policy.

Scratch and Dent insurance is for coverage on the policy holder’s vehicle only. No third party vehicle owner is covered in this type of policy like in Liability insurance policies.

The scratch and dent insurance policy is separate from all other policies a vehicle owner has on their vehicle. When a claim is made on the scratch and dent policy, their other policies are not effected in terms of points or occurrences.

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