I recently had a minor dent on my car caused by debris from a collision involving other vehicles. Although the police report didn’t mention my car, I went ahead and filed a claim with the insurance company I believe is at fault. I’m concerned about whether this incident will appear on CarFax.
The damage to my car mainly consists of a dent and some scratches, which I estimate would cost between $500 and $1,000 to fix with paintless dent repair and buffing. Despite showing the police video evidence of my car being hit, they didn’t include me in their report. The insurance company of the vehicle I believe is responsible contacted me for a statement as a witness, and I shared the video and photos with them. They are currently working out the situation between the two involved insurance companies, which may lead to a lengthy court process due to the property damage from the accident. I’m concerned that I might not receive any compensation if their payout limits are reached.
I’m considering trading in my car this year and would like to know how this situation might impact its resale value if it appears on CarFax. If I decide to fix the damage myself and withdraw from the claim, will that still be reported to CarFax? On the other hand, if I remain involved in the claim or go through my insurance, how could that affect my vehicle’s resale value given that the damage is quite minor?
It sounds like you’re in a bit of a complicated situation. Here are some points to consider regarding how this might affect your car’s resale value and any potential CarFax reporting:
CarFax Reporting: Generally, CarFax records accidents or damage that has been reported to insurance companies or done through repairs at certified facilities. If the incident you’re describing leads to a claim and any kind of insurance payout, it may show up on CarFax, even if the damage is minor. However, if you handle the repairs out-of-pocket and don’t file a claim, it’s unlikely to be reported on CarFax at all.
Impact of Minor Damage: For minor damages like a small dent and scratches, even if it does show up on CarFax, it may not significantly impact resale value, especially if the repairs are done professionally and the car looks good afterward. Buyers often understand that minor cosmetic damage can occur, but they are generally more concerned with major accidents that affect the car’s structural integrity.
Filing a Claim vs. Fixing Yourself: If you decide to file a claim, it could lead to an official record of the incident, which might appear on CarFax. If you fix the damage yourself and avoid filing a claim, you are likely to prevent any negative impact on your CarFax report. Just keep in mind that if you do choose to go through your insurance and it shows up on CarFax, it may lead potential buyers to scrutinize the vehicle more closely, even if the damage is minor.
Insurance Investigation: If the insurance investigation leads to a determination that another party is at fault, this could potentially affect any claims you might make. If your damage is documented but you handle it independently, that may help keep your record clean when it’s time to trade in or sell the vehicle.
Trade-In Considerations: When trading in your vehicle, dealerships often conduct their inspections and assess the car’s condition. If the repairs are done well and the vehicle looks clean, they might not adjust the offer significantly, even if there was a minor claim in the past.
In summary, if you’re primarily concerned about resale value and don’t mind covering the repair costs yourself, it might be best to fix the damage out-of-pocket and avoid filing a claim. This way, you maintain a cleaner record that won’t negatively impact your resale value. If you do go through insurance, just be prepared for the possibility of that being reported and affecting your trade-in value, even if the damage itself was minor.