Impacts of insurance claims in case of selling your vehicle

[rajshenoy]

I have this doubt..so it would be great if you guys can clear it...

After going through some of the posts, i came to a conclusion that if the repair costs amount say more than 5000, its better to go for insurance.

But the doubt i have now is, will the insurance claim cause some problems in the resale value of the car..


Say my repair costs come up to 7-8K and i claim the insurance... later on i want to sell my car.. what sort of an impact will this insurance claim have on my resale value ?

also, does it matter on the nature of repairs involved ?

fellows.. please throw some light on this...

[Jaggu]

unless someone really puts the effort to talk to insurance on the claim record, the impact will be zilch. our indian system is not that robust yet.

[rajshenoy]

Originally Posted by Jaggu

unless someone really puts the effort to talk to insurance on the claim record, the impact will be zilch. our indian system is not that robust yet.

Sounds good to the ear .. when one of my relative tried to sell his car and checked with the true value at the dealership, they told him that due to the insurance claim made by him(he had met with an accident) the value of the car will come down (M800, true value said 1.25Lakhs, and due the the claim made, it reduced to 1 lakh)

This made me think abt the system.

BTW, the guy managed to sell his car outside at 1.25 lakhs. ( i guess 5 year old M800)

Thanks Jaggu

[kuttapan]

It might be difficult for a potential buyer to get details of the claim, but it is very easy to get the history of a vehicle, provided the work was done at authorised dealerships.

[GTO]

I dont see why insurance claims would have anything to do with resale value. Damage, yes. If there has been an accident of sorts, that would surely affect your resale value. But since NCB is not transferable....what difference does it make whether the damage was reimbursed by self or the insurance cover?

Unless you try to conceal the accident from the buyer and the insurance policy / company is a giveaway.

[naveenmani]

Hyundai India is maintaining service records for cars serviced at any of its dealers/authorised service centers. Thus, whether it is routine/non-routine or accident service/repairs, the entire service history would be on its database. If it would be possible for any prospective buyer of a used car to check the service history (as it can be in developed countries), then, surely this would impact the resale value of the car. A well-maintained car might be able to attract a premium. But right now, without such access to service history, the seller or the second-hand car dealer resorts to 'information arbitrage' - i.e., using information that only he knows to extract a price higher than what would be possible if the information is not skwed. Thus, as GTO pointed out, claim or no claim isn't the issue here. The factor that would impact the resale value is its service history. And we should welcome an open system where such information is publicly accessible.

[mithun]

Claims will not have any impact on the resale value. BUT, major accidents will surely reduce the value if not mended properly.