Please advise on a deer accident. My car was sideswiped by a deer, and I’m trying to decide whether to have my insurance cover the repairs or pay for them out of pocket. Here’s the situation: the last time I sold a car, its value dropped significantly because of a minor fender bender, even though repairs were done at a dealership via an insurance claim. I want to avoid any additional depreciation, especially with luxury cars losing value quickly.
I’m considering selling or trading my vehicle this year. I got an estimate for the damage, which is around $3,800. I haven’t reported the incident to my insurance yet, and the damage is not easily visible unless you look closely at the bottom of the door. My main question is whether I could file a diminished value claim against my own insurance if I report the accident, or would I just have to accept the vehicle’s depreciation due to this incident? Would it be wiser to pay for the repairs myself to prevent a potential lowball offer when I decide to sell and keep it from showing up on Carfax?
I’ve never filed a claim on my insurance before, only against another driver when I was sideswiped. I really appreciate any insights! Thank you.
It sounds like you’re in a tough spot, and it’s wise to weigh your options carefully. Here are some considerations that might help you make your decision:
Diminished Value Claims: Generally, you can file a diminished value claim with your insurance company if your vehicle has been in an accident, even if it was your fault. However, the process can be complex. You’ll need to provide evidence of the vehicle’s previous value and the impact the damage has had on its current value. Be sure to check with your insurance provider for their specific policies and how they handle such claims.
Out-of-Pocket Repairs: If you opt to pay out of pocket for the repairs, you may be able to avoid a claim on your insurance record, which can help keep your premiums lower. Since the damage is minor and not easily noticeable, this could be a reasonable choice if you’re planning to sell or trade the vehicle soon.
Impact on Resale Value: Luxury vehicles can depreciate significantly after any reported accident, regardless of the extent of the damage. If you fix it out of pocket and it doesn’t show up on Carfax, you might maintain a higher resale value.
Future Premium Increases: Consider the potential impact on your insurance premiums if you file a claim. If you’ve never had a claim before, your rates may go up after this incident, which could negate any financial benefits of filing a claim for repairs.
Insurance Deductible: Don’t forget to factor in your insurance deductible. If it’s high enough, it might make more sense to pay for the repairs yourself since the insurance payout wouldn’t cover all the costs anyway.
Ultimately, you should weigh the immediate costs against potential long-term impacts on resale value and insurance premiums. If you’re leaning towards paying out of pocket, just ensure that the repairs are performed by a reputable shop to maintain quality and value. Good luck, and I hope this helps!