Thursday, December 11, 2008

Sneaky ways to avoid carfax stalking

I've learned a lot about accidents, cars, and collision damage in the past week.

Another tip of note:

When most people are in an accident and the damages exceed the amount of their deductible, their first response is to report it to their insurance company and have them pay for it, right?

Well, think twice before you take that step. Let me break it down for ya.

Let's say for example, you're in a fender bender and the damages come out to $1500. Your deductible is $500. So of course you want the insurance company to pay the other $1000, right? But have you thought about this? There's a concept called "loss of value" which means that every time your car's in an accident, it loses some of its value. Will your fender bender cause a loss of value greater than $1500? If so, you might be better off paying for the entire $1500 out-of-pocket. This way, nothing needs to be reported to the DMV and carfax will never know that your car's been in this little fender. Thus no loss of value resulting from this accident. In general, you're supposed to notify the DMV (at least in CA) if you have any accident with damages over $750. But it is the driver's responsibility to do this. And if you pay for the damages out of pocket and don't report to the DMV, then there is no paper trail and no one has to know about your little fender bender.

Remember, this is not an option if your insurance company gets involved as there will be a paper trail and all bets are off.

Now this may sound all shady and illegal to some of you, but I'm asian and fulfill every asian stereotype you can imagine including indulging in illicit activities. So if you don't like anything i've said, leave me a comment. And if that still doesn't appease you, then you can bite my shiny metal ass.

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