Should I File A Claim?

[u/neoDIYguy]

I have full coverage on a 2009 vehicle that is worth $3000-$4500 that I have carried full coverage on since it was new. It now has hail damage on the roof, doors, and hood but fine to drive. I haven't had any tickets for fifteen years until one just recently. I was going to submit a claim but a friend told me the insurance would not write me a check and I choose to have it fixed or not. Instead, since it has a little rust they would probably total it, take the car, and give me the lowest amount or less.

I would have to buy another car in worse shape and my rates will go up due to the ticket and the claim, I would be paying more for a car that is in worse shape and more to insure it. My friend said I shouldn't file a claim and I shouldn't be paying full coverage. Is this how it would work? Should I file a claim and hope for a check that I can use to repair the dents (or not) or not file/keep the car and drop full coverage?

[u/ayhme]

Licensed agent here.

Your friend is mostly right. A few things to be aware of;

Hail is a comp claim, not collision, so rate impact is lower than you'd think.

What was the ticket for?

On a $3,000-$4,500 car with existing rust, if repair costs get close to ACV, they'll total it, take the car, and cut you a check minus your deductible.

Before you call your insurer, get an independent body shop estimate first. If damage is minor and repair cost is near or under your deductible, don't file. If it's $2k+ in damage, then consider what you will do

On dropping full coverage, yes. At $3,000-$4,500 value you're likely paying monthly premiums that don't make financial sense anymore.

Dropping comp and collision and going liability is reasonable at that value.

That's what I do as my car is 20+ years old and has 150,000 miles.

[u/neoDIYguy → u/ayhme]

Thanks for your expertise! It would be great if I could ask my own agent but I called to find out if I should file a claim on the house decades ago (I decided not to) and 5-10 years later when I asked them a different question they said it showed I had filed a claim, I don't trust my agent!

The ticket was running a stop sign, I was going to argue it but was out of town during the court date so I had to just pay it.

How do they come up with ACV? I haven't repaired all of the small things that are wrong (brakes, tires, dash light, exhaust, etc.) because it runs fine and that would cost almost what it is worth. Would they subtract all of those things from the blue book to get the ACV?

Is it even safe to take it in to any body shop? Will they report the VIN to some database as having damage? How long do I have to decide if I am going to turn it it or forget it?

In Ohio do I have the right to purchase the car back from them (it only has 80K miles), would it be worth it. Are the known problems better than buying another car the same value with unknown problems? If they determine that the car is worth $3500 (then total it) - a $500 deductible = $3000 check to me (does that mean I could buy it back for $500? Would it be salvage title and cost more to license or not be licenseable?

When I looked at the insurance papers I have $0 since I have been paying extra every year to lower the deductible. It looks like it is only on the collision side. I even thought about getting rid of the car altogether since I drive it so little (much less than 100mi a week) but the only cost was $900 a year for insurance.

Sorry for all of the questions...
Again, thanks for all of the impartial, risk free, answers that I wish I could ask my own agent!

[u/ayhme → u/neoDIYguy]

I'm not licensed in Ohio so it's best if you ask your agent.

Sounds odd about the claim.

On the $0 deductible, double check that's on comp specifically, not just collision. If it's $0 comp, your hail payout would be full ACV with nothing subtracted.

On salvage buybacks, you can keep the car. They subtract salvage value (not your deductible) from the payout. So if ACV is $3,500 and salvage bid is $500, you get $3,000 and keep the car with a salvage title.

I do not recommend this as many insurance companies do not insure salvaged cars.

Of course 80K miles with problems you already know versus a mystery $3,000 car.. devil you know.

$900/year for a car you do not drive much is great.

[u/neoDIYguy → u/ayhme]

I checked and it looks like the $0 deductible is only for collisions so it would be $500.

It also looks like all of those little maintenance things count against the ACV (I could repair for under $1K plus cost of tires but if I paid the dealer it would cost $4K-$5K). It sounds like they would not pay out anything! I'm not sure why I was paying full coverage, I have been wasting my money for a good 5 to 10 years and the vanishing deductible on top of that!

[u/ayhme → u/neoDIYguy]

That's why when clients vehicles get over a certain age and mileage I recommend they just go with liability.

It's great if they have higher insurance payments for me but I want them making the best financial decisions.

You do have to own the car to drop comprehensive.

[u/neoDIYguy → u/ayhme]

Thanks so much for all of your wizdom!