Advice Needed: Deer Collision Incident
I experienced a side collision with a deer, and I’m seeking advice on whether to use my insurance for the repairs or pay out of pocket. Here’s my situation: Previously, I sold a car that had a minor fender bender, and it lost thousands in value, even though the repairs were completed at a dealership through an insurance claim. Luxury vehicles already depreciate quickly, and I want to minimize any additional loss, especially since I plan to sell or trade in my car later this year.
I’ve received a repair quote of around $3,800, and I haven’t reported the incident to my insurance yet. The damage is mostly subtle, noticeable mainly at the bottom of the door. My question is: If I report this to my insurance, can I file a diminished value claim for my car? Or will I simply have to accept the depreciation due to this incident? Would it be wise to pay out of pocket to prevent it from appearing on Carfax and potentially affecting the price I would receive when selling? I’ve never filed a claim on my insurance, only when I was hit by someone else. Any guidance would be greatly appreciated!
It sounds like you’re in a bit of a tough spot, and I can understand your concerns about depreciation and selling your luxury car. Here are some things to consider:
Insurance Claim vs. Out-of-Pocket: If you pay out of pocket, your car won’t have a record of the accident in the insurance system or on Carfax, which could help maintain its resale value. However, if you do report it to your insurance and file a claim, you may face a deductible, and the repair could also impact your future premiums.
Diminished Value Claim: You can pursue a diminished value claim against your own insurance for the loss in value after an accident, even if you don’t plan to have them fix the damage. However, challenging this can be difficult, and many policies have specific requirements for filing such a claim. You might want to call your insurance company to get their take on it.
Assessing the Damage: If the damage isn’t easily noticeable and you think you can live with it, paying out of pocket could certainly save you the headache of reporting the claim. On the other hand, if the damage worsens or if you plan to drive the car extensively, getting the repairs done might be worth considering.
Future Sale Considerations: Since you’re looking to sell or trade the car soon, think about how much the repairs might increase its resale value versus the $3,800 cost. If it’s a high-value luxury car, potential buyers might be less forgiving of undisclosed damage.
Consult an Expert: It might be beneficial to talk to a trusted mechanic or a body shop to get their opinion on whether the repair is necessary and if you’ll be able to sell the car at a reasonable price without it. Also, consider consulting with an insurance expert or agent about your specific policy coverage and options.
Ultimately, weigh the costs and benefits to see which option aligns best with your priorities and your financial situation. Good luck!