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Auto Insurance Claims/Hail Damage - Trade In

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Expert: - 1/12/2012


Question
Hi 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

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Jane Pytel

Expertise

I can answer questions related to auto accidents, auto damage, auto theft claims, or personal injury claims. I am specifically suited to answer questions concerning insurance investigations and the effects of those investigations such as claim delays, claim denials, examinations under oath, or the special investigations unit. I can answer most any question that relates to proper claims investigations, or claims handling procedures and processes. I have written a very detailed eBook, Power To Profit, which provides extensive insider information for who are in need of professional claims advice for their valid insurance claims. The book, along with numerous informative articles, are available on my website, http://SolutionsForYourInsuranceClaim.com

Experience

12 years of experience with 3 major insurance companies. I hold an all lines adjusters license in Florida. I am well versed in claims handling, claims investigations, and industry standards related to both. The bulk of my experience stems from my 10 years as a police officer / detective. Building on that investigative experience, I became an SIU (Special Investigations Unit) Investigator. Accordingly, my unique expertise lies in the investigation of claims. What is necessary and related, what is not necessary and related? What constitutes a fair claims investigation? What recourse is available for consumers who suspect they are experiencing unfair claims delays? During the course of my experience, I became a certified trainer, instructing adjusters and investigators proper techniques for claims investigation and claims handling.

Education/Credentials
B.A., Communications, University of Miami 350 credit hours of intense investigative training, Miami Dade Police 80 hours of investigative training, various Federal Agencies, Miami, Fl Intensive Accident Reconstruction and Pedestrian Injury Analysis, NHTSA, National Highway Traffic Safety Agency, Oklahoma City, OK 2 weeks Auto Damage Appraisal, Winston Salem, NC Legal Principles Claim Specialist, AEI

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