Do I need to file a claim for damage to my own car?
This morning, we were involved in a minor car accident, and I suspect it will be deemed our fault. I plan to file a claim for the damage to the other person’s vehicle, but I’m unsure whether I should also file a claim for my own car. The damage on my car is purely cosmetic, and given that it’s 16 years old, it doesn’t hold much value. My concern is that even though the damage is minor, the repair costs might exceed the car’s worth, leading the insurance company to declare it a total loss. If that happens, I doubt I would receive enough to buy a new car. Additionally, if they total it and I decide to keep it, I’m uncertain whether I would still be covered or if I’d have any coverage options elsewhere. I’d really appreciate any advice on how to navigate this situation. Thanks!
It sounds like you’re in a bit of a tricky situation, but let’s break it down.
Firstly, you are not legally required to file a claim for your own car after an accident, especially if the damage is cosmetic and you believe it won’t cost more than the car is worth to repair. However, there are a few things to consider:
Cost of Repairs vs. Value of the Car: If you estimate that the repair costs are close to or exceed the value of your car, it might make sense not to file a claim on your vehicle. You can get quotes from body shops to see how much the repairs might cost.
Insurance Implications: If you do file a claim for your own vehicle and the insurance decides to total it, you may receive a payout based on its actual cash value (ACV), which might not be enough to buy a new car. If you choose to keep the car post-total, you would typically receive a lower payout because you’re taking the car back.
Impact on Premiums: Filing a claim, even for cosmetic damage, can impact your insurance premiums. If you don’t think the damage is worth claiming, it might be better to handle it out-of-pocket to avoid potential premium increases.
Future Coverage Concerns: If your car is totaled and you keep it, there’s a chance your insurance company might not insure it anymore, or if they do, the coverage might be limited. You may want to consult with your insurance provider to clarify their policies on totaled vehicles.
Consult Your Insurer: It can be helpful to talk to your insurance agent for guidance adapted to your specific policy terms. They can explain the consequences of filing a claim for your own vehicle and help you weigh your options.
Ultimately, the decision depends on your financial situation, how much you are willing to spend out-of-pocket, and your future car needs. If the car is still in decent driving condition and you feel comfortable managing the repairs yourself, it might be worth not filing a claim.