istarzan

iTrader: (8)

I have a 07 IS350. Long story short, a gate hit me while it was closing at my apartment complex and caught the side of my car. There is $1500 in damage. Planning on going thru insurance (state farm) but I'm afraid my premium will increase.

Thinking to tell them my car was hit by someone in a parking lot while I was shopping. Will this fly?

I'm also worried that my insurance will report to Carfax if I file a claim. This will result in loss value when I trade in or sell down the road. The body shop said they don't report to Carfax. If that's the case I'll just pay out of pocket. Any advise is appreciated!

Mocchan

I believe there are some limitations to Carfax so I don't think you should be too concerned. However with that said, I don't think insurance companies report ALL information to Carfax..it's most likely a 50/50 chance.

I've had a few instances where I've reported accidents to my insurance and only one of them show up when I bought my Carfax report.

VTsuckah

iTrader: (1)

Your premium will go up a bit.

Do not lie how it happened. That's insurance fraud and if caught, you can get into some serious trouble. Besides, if you got hit by the gate or another while shopping, it woudnt make a difference. Your premium would still go up BC your insurance company would pay for the repair.

FSportIS

iTrader: (13)

Wait, I thought this kind of repair is covered under "comprehensive" and NOT "collision" and if so, it should NOT increase the premium right because it is not like you are at fault. Thought??

istarzan

iTrader: (8)

Hmmm. Well it's my fault I hit the Gate. I drove thru the entrance gate when a car came into the complex, bc I didn't wanna drive wait for the exit gate to sense my car as was late for work. The gate closed as my car passed by catching the side. Thoughts?

Didn't call insurance because my body shop told me to add rental car coverage first then claim a week later lol.

FSportIS

iTrader: (13)

In that case, in short term, you gain by going through insurance because they gonna pay the bill partially for you. In long term though, you will get premium increase and also the accident might get reported to carfax which affects your car value, you will lose more than gain. If the repair is around 1000 or so, it is better just pay out of pocket. The premium increase can be deadly for years to come.

User 41924

I respectfully disagree. Taking $1500 out of your cash flow all at once is FAR worse than paying a deductible and a small increase in your premium. Even if it turns out to cost more over the next several years. This is what your insurance is for!

While I agree that minimizing the cost is a good idea in theory, it's more important to get it fixed right. Take it to the best body and paint shop you can find, pay the deductible, and let them fight with the insurance company for the money. Keep in mind the insurance company will NEVER want to pay the real cost of the repair. Only their estimate, which is always low. Your premiums will probably go up a bit, but how much depends on your record. Do the math. If your premium goes up $100 a year, it will be 15 years before the trade off starts to cost you money. Besides, you'll feel a lot better with the results than if you try to go cheap on the repair to save money now. In my humble opinion, that's worth the increased premium.

I put a small scratch in our RX a year ago, and had the insurance pay. They quoted $600 for the repair, and wanted to write a check to settle right there. The actual cost was over $900. The insurance paid the entire amount, and I had no increase in premiums (long time customer with almost no claims). I would do it again in a heartbeat, even if there was an increase in premiums! Plus, I have the added advantage of having an incredibly good repair. I would challenge anyone to find what was fixed. I smile about my decision every time I wash that part of my car.

Get it fixed right, and don't over think this. You'll be happier in the long run.

FSportIS

iTrader: (13)

Yeah, I do agree with a lot of your saying Woodrow. Your insurance company treats you good and in your case, you definitely should file a claim.

If you want to do a full blown cost benefit analysis taking time value of money into account, we can do that too with complete information such as deductible, current interest rate, premium increase per year, car value depreciation due to accident etc

For simplicity, if his deductible is $1000 and the cost is $1500, all he gained from the insurance is only $500 but if they increase his premium $100-$200, even with time value of money being taken into account, he will pay more than he gains in 3-6 years. After that, he will continue lose money due to the premium increase. That is not even taking car value depreciation due to accident into account. Buyer will likely pushes the price a lot lower if they know the car has some kind of accident even if it is minor or they will even go away and buy a similar car with no accident. That itself can cost way more than what he gains in the short term.

There is also other benefit of keep clean and good driving record too. You can shop around with various different insurance companies and get competitive pricing. I do that once in a few years and I save hundreds of dollars each year because ultimately insurance companies want to get the customers with good/clean driving records.

User 41924

Yep, You're absolutely right! Without knowing the deductible or how much the claim might impact his annual premium, all we can do is guess at whether or not it's a good financial decision to involve the insurance company. That's why I said "do the math". BTW - Is it just me or does it really irritate others that we HAVE to pay for insurance, but we get hosed if we actually USE it? It just seems wrong that insurance companies are happy to take your premiums as long as you'll pay them, then push back with low ball quotes/settlements and increased premiums when we actually file a claim.

My bigger point was that it doesn't matter how the finances work out. Get it fixed right. by the best paint shop you can find, and pay the price. If you're anything like me, ANY blemish or screwup in the paint will stand out like a sore thumb. It doesn't matter any more how much money you saved, if every time you look at the car, all you see is blend lines or unmatched paint.

Good luck!

FSportIS

iTrader: (13)

Woodrow, I very much agree with you here lol. I guess we just pay the damn premium to save ourselves financially when there is a big accident. Also, we are contributing to the whole system for insurance to work for the greater good for all of us to have a peace of mind when there is actual big accident. If we were to have the option to buy insurance or not, the whole insurance system will not function properly or even collapse.

I do have a clean/good driving records and I never use my insurance once even though I have been paying the premiums for so many years and sometimes I wonder why the heck do i pay them thousands each year too lol but then that is contributing to the insurance system to work.

By the way, for all of you who really care about car paint condition. I highly recommend you to apply Opticoat coating to protect your paint for years. It is like a factory clear coat but Opticoat offers better water beading/sheeting, chemical resistant, UV light resistant, and scratch resistant. Google Opticoat for more information.

istarzan

iTrader: (8)

Thanks for the input guys, really appreciated. I too am very particular about the work done on my car. My deductible is 500 and my premium is 68 per month. I was told by my body shop that it'll probably increase 20% a month for 3 years so about $500. That's not my main concern however.

I'm worried that my insurance will report to carfax that I had an accident, thus decreasing my car's resale value when I sell. Read online somewhere that a guy got a scratch on his bumper and filed a claim for 600. 3 years later when he went to trade it, carfax showed he was in a front end collision, resulting in the dealer giving him $4000 less for his trade. He tried to explain that it was only a scratch but the dealer didn't buy it. I'm just trying to avoid the same thing. If that being the case, I'd rather pay out of pocket $1800 at a highly reviewed shop.

User 41924

That's harsh! When I traded in my IS a week ago, they asked if there had been any body or paintwork done on it. I had to say yes, but if it impacts the trade in value, I was going to have a MAJOR issue with them. After all, it was their "free" car wash that caused the problem that resulted in having to repaint a fender!

fortenmerd

As per your provided details the premium will have a chance to increase but we can't tell to insurance company you may bear the repairing cost of yourself. So,The choice is yourself. In my view, better to consult the insurance company and clearly explain the problem then their solution you may proceed with insurance company or not.
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istarzan

iTrader: (8)

Thanks for the inputs thus far. I'm leaning towards paying out of pocket. Bump for any other thoughts?

FSportIS

iTrader: (13)

It is also a good time to install some body kit as well if you are into modifying the look