Do I Have To Get My Car Repaired After A Claim?

The answer to this question depends upon your answer to two questions: Do you own your car outright or do you have a loan or lease; and is the damage considered significant (major body work that would affect the value of the car).

If can answer yes to either of these questions, then the answer is likely YES.

If you have a loan, then the leinholder will expect you to keep the car in saleable condition. In many cases, if the damage is significant, then the car insurance company will have the claim check endorsed to both your name and the bank's name. Both will have to endorse the check in order to get the funds for the repair. You can ask your bank if they are OK with you not fixing the car if the damage is not significant. They may be OK with it, but most likely they will want the car fixed since it's really their car anyway until you make the final payment.

If the check is made out to you only, then the insurance company considers the damage small and will leave it up to you whether you want the car fixed. Either way, you will pay for the damage since you will likely either sell or trade in the car eventually. If the car is damaged, then you will get less for the car as most buyers or dealers will subtract the likely cost of repair from your asking price or trade in value. In the long run, you will probably pay more if you don't get the car fixed right away.

You also have to take into account annual car inspection in your state. The damage may be significant enough that you may fail inspection and have to get it fixed anyway. If you've already spent the insurance money, then you may be in a tough spot with getting your car to pass.

If the damage is relatively insignificant, you own your car outright and the damage won't cause you to fail state inspection, then you can do whatever you want with the money legally.

Where can I find the best car insurance deal after a claim?

If your rates have gone up after an accident or claim, then you should definately look around to see if you can find another insurance company that has lower accident surcharge factors and can get you a better deal. If you are shopping for car insurance and want to compare rates, then we suggest that you compare policies and rates from several insurers. We recommend Insureme who allows you to compare several rates from dozens of major, highly rated insurers such as Met Life, Allstate, AIG, and more. They also include local car insurance agents in their network and quotes you recieve. Many times, local insurance agents can give you a better deal than if you bought the policy online.

This should not be considered financial advice which can only be given by a qualifed financial professional. We suggest you consult with a qualified financial planner and/or insurance professional who is most qualified to consult with you regarding policy decisions. Many factors are involved in your policy premium some of which may not be mentioned in this article. We are an affiliate of the Bankrate Insurance Network.

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