QuestionHi Jane,
I have a policy for auto insurance through Liberty Mutual. I found out earlier this year that in the big April 2010 hail storm we had, that I have a lot of hail damage to my car. I didn't make a claim at the time, because I was scared of my premiums going up, and being pocketsized dents on a black car, I didn't notice them right off. Well now, I'm trying to trade in the car, and a lot of value is being deducted because they can see the damage. So,
1. Is it too late to file the claim?
2. Will it make my premium go up?
3. Can I get an estimate for the repair, have the check written to me, and instead of fixing the vehicle, use that money directly towards covering the loss in value at trade-in? Or is that some sort of fraud?
Answer Hi Ray,
It is not too late for you to file a claim. No, this loss will not - or should not - cause your premiums to go up. Premiums rise generally for accidents that are your fault, for traffic violations, or for multiple claims. In and of itself, this event should not constitute a premium increase.
As for an estimate, that will almost certainly need to be done by your insurance company. Whether or not they will issue a check directly to you depends on whether or not you have a lienholder. If there is, the insurance company will make the check out to both of you as the lienholder still has an interest in your car. If you own the car outright, the check will be made out to you minus your comprehensive deductible. No, it is not fraud to use that money as you want as long as you understand that this is your sole payment.
You will need to carefully weigh the cost of your deductible and the cost of the repairs before you make a final decision. If you want to, you can take the car to a shop and ask for an appraisal before you file a claim. That should give you a better idea of your options. But one word of warning, shop estimates are usually higher than insurance company estimates.
Hope this helps. Good luck!
Jane Pytel
http://SolutionsForYourInsuranceClaim.com
http://FloridaAutoInsuranceCentral.com
