Car accident: Should I take out insurance or pay out of pocket?


I’m confused as to what could be a good metric, based on which we do it out of pocket or file an insurance claim.

BHPian warp_10 recently shared this with other enthusiasts.

This is my first post and I have tried to cover as much information as possible.

I have a situation where my 7 year old Brezza ZDI+ has a zero dep policy (with 1k co-pay/deductible) had a knock on the back. The other party didn’t have insurance but accepted their mistake (they were construction workers) and I was in a rush to get to the hospital so I decided to let go and get away with it. take care of it myself (time was crucial at the time and didn’t feel like sitting on it). Will I need to use my font for this (or should I)?

I’m confused as to what could be a good metric, based on which we do it out of pocket or file an insurance claim. The damage was on the passenger side taillight area and therefore not much. If I take it to a body shop (Trend automotive as suggested by other team-bhp) it will be up to 12-13k. I don’t know if I should do it with insurance or out of pocket. Any suggestions will help.

Negatives:

  • Lose the PNE and the premium increases, I pay my deductible.
  • Is recorded in the car history
  • Depreciates the value of the car

Good points :

  • Paid insurance premium gets to work

My PNE is 1500 at 35%. And my deductible is 1000. So the negatives are 2500. That puts the insurance benefit at 10k (12.5k – 2500). So, will the resale amount be reduced by such a large margin when selling? If so, it makes sense not to opt for insurance. Otherwise, I would. Are there other factors to consider as well?

What is a good measure/metric that people use to decide this (especially when the amount is neither too huge nor too small)?

I looked for other articles that talk about insurance versus payouts. But I don’t see any metrics to help decide when to opt for insurance or shell out.

Appreciate any entries on this.

Here is what BHPian normaltusker should say about it:

Whether you choose to have the car repaired with or without an insurance claim will impact your resale value anyway. There are ways for third party buyers (like OLX/Spinny/Cars24) to identify if the car has had a repair/body repair. Therefore, my 2 cents would be to go with insurance and have the job done at a good body shop, as that would give you peace of mind at least until you continue to own the car.

Here is what BHPian KA01 to KA03 should say about it:

In such cases, I always prefer to have it repaired by a good body shop without insurance, especially if you plan to change your car after a few years. Even though the difference in resale value wouldn’t be significant, you could save a hefty amount in insurance if you keep the PNE.

Here is what BHPian Mustang_Boss should say about it:

It should always be:

  • Prefer the ASS, the disaster insurance, if the amount is high or if mechanical parts are to be replaced. This guarantees you a 6 month warranty [depending on the brand] of the mark for the worker ship and parts. Even you get decent coverage if you have your suspension changed by ASS.
  • If it’s a cosmetic repair: Most modern cars have an underbody frame and cosmetic panels on top. At the end you have your bumper. As long as you replace the panels/bumpers, you won’t suffer any knocks on resale and you are free to choose where to have it repaired.

If it’s on the frame try doing it with ASS and use insurance for the same.

Peace is more important than price.

Brand assurance is more valuable and rewarding, if needed, than trusting the local mechanic.

Here is what BHPian RRM should say about it:

I would prefer ASC with a thought (with or without insurance). It gives you peace of mind, including a 6m warranty. Don’t worry too much about ncb. Also, whether you take out insurance or not, it can be discovered that a specific part has been painted because when evaluating the car, almost all players use relevant tools to identify paint thickness, etc. .

A good evaluator can simply identify by sliding his hand over the areas where he has doubts. I saw it when appraising my friends car and it was able to identify 60-70% of the repainted areas without using any tools as a first option.

You have zero dep insurance. Use it

Here is what BHPian Shancz should say about it:

Year 7 is probably the last year you have a zero refund policy and I’m guessing it’s not from the big guys. I had to make a claim in 6th grade and upgraded to full position, although some smaller companies offered zero eff until 7th grade at most.

Given this, do you get a claim for zero dep because you would have paid at least two thousand extra, as a bonus per year. It’s time to get it back

NCB would only be meaningful if you buy something new/with a high IDV and use that NCB. Although I have never used this option, but other members have
Renewing this policy next year as full would cost about two thousand less.

Note that unless the damage is very insignificant in terms of cost/nature, I usually make a claim because the purpose of insurance is to meet these expenses when they occur rather than worrying about NCB, IMHO.
That being said, thanks to educational posts from other members, I’ve added an endorsement to check the NCB hit in case an upgrade is on the radar.

Read BHPian’s comments for more ideas and information.

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