Should You Pay Out of Pocket for Auto Collision Repair?
Auto collisions, whether major or minor, are likely to leave you with a repair bill to think about. If you're lucky, the accident will leave your car
with nothing more than a few dents and scratches. However, it's also possible that the collision will leave your car in need of major repairs.
Some people will assume that there's nothing to worry about in such circumstances if you have comprehensive insurance coverage. However, NASCAR Car Wash understands that filing a claim will have many effects which warrant the need to approach this decision cautiously.
Effects of Filing an Insurance Claim
If you file an insurance claim, the consequences of doing this will be:
1. If the claim is greater than the deductible, you'll only have to worry about paying the deductible
2. The claim may result in an increase in your premiums going forward
When your vehicle has suffered a lot of damage, the cost of repairing it might be much more than you can handle. Filing an insurance claim under such circumstances makes a lot of sense. However, if the claim is lower than the deductible, there's less of a point in filing the claim since you'll still have to pay for the repairs yourself.
Effects of Paying Out of Pocket
If you decide to pay for repairs out-of-pocket, the possible consequences include:
1. You won't have to worry about the effect of the claim on your insurance premiums
2. Having to pay for repairs out of pocket might strain your budget
Paying out-of-pocket is sometimes a good choice when you can afford it. If the claim amount is lower than your deductible, paying out-of-pocket will be your only sensible option. However, when the damage suffered by your car is significant, it may even make more sense to buy a new car than pay out-of-pocket for the repairs.
Paying Out-Of-Pocket or Filing a Claim
Ultimately, the decision on whether you should file a claim or pay out-of-pocket must be determined depending on your circumstances. You'll need to consider the benefits and drawbacks of each decision carefully.
For example, if the cost of repairs is more than the deductible but only by a few hundred dollars, the long-term benefits of filing such a claim will be almost zero. The extra amount you'll pay in premiums over the years will be much more than claim. When it comes to auto collision repair, filing a claim should only be done when you can risk the increase in premiums.
If you are in doubt about your payment options, NASCAR Car Wash suggests contacting an auto repair specialist. They can give you an accurate quote for your repair work so that you know where you stand in relation to your insurance deductible.