Impacts of insurance claims in case of selling your vehicle

rajshenoy · 18th September 2007, 16:26

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 · 18th September 2007, 23:32

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 · 19th September 2007, 10:15

Quote:

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 · 19th September 2007, 14:11

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 · 19th September 2007, 14:30

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 · 20th September 2007, 10:20

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 · 24th September 2007, 16:59

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

18th September 2007, 16:26	#1
rajshenoy Senior - BHPian Join Date: Apr 2006 Location: bangalore Posts: 2,885 Thanked: 2,230 Times View My Garage	Impacts of insurance claims in case of selling your vehicle 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...
	() Thanks

18th September 2007, 23:32	#2
Jaggu Team-BHP Support Join Date: May 2004 Location: Bangalore Posts: 20,215 Thanked: 15,907 Times	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.
	() Thanks

19th September 2007, 14:11	#4
kuttapan Senior - BHPian Join Date: May 2007 Location: Melbourne Posts: 1,155 Thanked: 22 Times View My Garage	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.
	() Thanks

19th September 2007, 14:30	#5
GTO Team-BHP Support Join Date: Feb 2004 Location: Bombay Posts: 70,546 Thanked: 300,779 Times View My Garage	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.
	() Thanks

20th September 2007, 10:20	#6
naveenmani BHPian Join Date: Apr 2007 Location: Chennai Posts: 30 Thanked: 15 Times	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.
	() Thanks

24th September 2007, 16:59	#7
mithun BANNED Join Date: Jan 2006 Location: Cochin Posts: 2,195 Thanked: 268 Times	Claims will not have any impact on the resale value. BUT, major accidents will surely reduce the value if not mended properly.
	() Thanks