alyshehata

So about a month ago I posted my baby new Mercedes C300 4MATIC (beautiful car btw ).

This morning as I was driving over to an exam I had, my car shook slightly all of a second. I look in my rear view mirror and notice the car behind me was very close to me. I got out of the car, and yup, I got rear-ended. Luckily, the damage only happened to the rear bumper and the bumper frame is in perfect condition. The only damage was a few pain chips from their front license plates screws. I went to a few body shops and the repair estimates ranged from $600-$1000.

I was okay with that, but then I realized, there's a chance insurance reports the "accident" to CarFax and my ~50K car (which of course isn't valued at ~50k anymore) will lose a lot of it's value due to something that is so minor that it can't really be seen unless your looking for it. So my question is, are there specific situations for when insurance reports to CarFax? I am hoping that they actually look at the severity of the damage or the cost and decide whether it should be listed or not, but all the insurance people I have called have no clue about CarFax for some reason. Police was not called and I have asked the person who rear ended me to wait on filing a report until I can decide how to proceed. I told them it's a new car and I am hoping not to get anything on a CarFax for really small paint chips that could happen anywhere even if the car is parked.
If worse comes to worst, I will just live with the few chips or touch it up myself to avoid having something that could reduce the value of my vehicle for thousands of dollars for something I was at no fault of, and it really sucks how no one in the insurance industry seems to know what the policy is on CarFax.

So my question is, do you have any advice of what to do in a situation like this? I have read that liability deductible is typically zero, and if that is the case with the other person's insurance policy, I will try to work with them and see how much they are willing to pay to go through without insurance, since their rates would see an increase and both of our cars might have accidents reported on CarFax. But, they could very well refuse to pay anything out of pocket, and that point I am considering just letting it go. What is your advice with regards to how to approach this problem?

BenzC400

I always thought it was the repair facility that reported to CarFax. I had a similar accident years ago. The other driver's insurance company paid the estimate (about $1,000) and I never got it repaired. The only visible damage was a scratch or 2 to the rear bumper. When I sold the car, it had a clean CarFax report, no accidents.

Mike5215

Insurers report to CARFAX, and CARFAX also accesses public records (traffic crash reports). Anything related to the car's VIN can show up, although it may not show up for months.

CARFAX does reflect severity (or lack thereof) on its reports but if you can avoid a police report and insurance involvement that would prevent you getting hit with more depreciation.

Deductibles only apply to first party coverage (Collision or comprehensive), never third party (liability), and it's likely the adverse driver will want to handle damages directly. Unfortunately once they see the actual bill they may change their mind, and the lack of a police report might make providing liability challenging.

I'd try to get the adverse driver to pay directly, but if not I'd likely either live with the damage or pay for it myself.

alyshehata

Thanks Mike! I just received a call from State Farm today telling me the lady who hit me has filed a claim. Even though I specifically asked her to discuss it with me first (and I would've been willing to completely ignore the accident and not ask for anything in return so that my CarFax remains clean). I guess some people just don't have any decency even when it's their fault 100%. Here's to hoping it does not get reported to CarFax as the insurance adjuster said they do not (but he didn't really sound like he knew what he was talking about)...

Mikey53

Wow, she took responsibility for the accident and filed a claim...that shows no "decency"?

What a world, what a world.

550x2

Don't sign off on her liability and when you sell the car you could take her to small claims court to make you "whole". She would be responsible for the difference in value you lost due to the damage. I've seen it work here in California.

alyshehata

That's totally understandable if her car was damaged at all in the process or if the fault is disputed. In actuality, her front license plate is what caused my damages and her car was in perfect shape. In addition, she rear ended me while I was stopped so it was 100% her fault. We both knew that and I was okay with letting it go without filing a report to avoid "Accident Reported" on the CarFax for something that minor (it could very well happen in a parking lot, etc...). I mentioned all of that to her and told her I would not like my new car to have a damage claim on it for something this minor. Instead of at least notifying me, she went ahead and filed a claim - which I guess is totally within her rights and the insurance company knows it is her fault - but I don't think my request was unreasonable at all.

Mike5215

The insurance company won't require a release on the property damage anyway so there's nothing to sign off on.

Small claims is probably the wrong venue for a diminution of value claim, and if the report stays off CARFAX there are no actual damages to support DOV. A light hit like that isn't worth the hassle of pursuing it.

Now the $16,000 rear end hit my 16 took would make a decent DOV claim but since the car is leased and I won't actually incur a loss I can't pursue one.

dieseldoc

Most insurance companies require you to report an accident involving another individual. In addition, in some states if the damage is over a certain amount you are required to file a police or DMV report. She did nothing wrong! It also protects her in case there were any other claims in the future i.e. Medical etc.

Seanhfx

wow...you calling them out for not having any decency?????? They have a right to contact their insurance co.

Good luck

Mike5215

I'd have done (and I have done) the same thing. You can just call State Farm and tell them you don't wish to present a claim, and tell them to go ahead and CWP their file. (Close without pay). Claim closed. End of story.

It's more than the CARFAX. I had Gieco try to move me to a more expensive risk tier because I'd had too many "incidents". Mind you I was stopped and rear ended three different times, none of which I had any control over. My insurance was set to go up $300 a month, from $600 to $900 on four cars. I dropped them and found comparable coverage with another carrier.

C2 Turbo

It's either the Police report or the body shop that reports to the CF and not the Insurance company. Call the Insurance and ask them an anonymoous question about buying a car and you think car might had an accident and you guys are the insurance carrier. You would like to know if you all report claims to Carfax?

Secondly, call and confirm with the repair facility.

Bumper repair would be around $1300 and your claim might have a deductible too, so not sure if you want to go through the hassle or not

Bottom line, you might not lose any money even with CF but now the car has a story that you would need to explain everyone not to mention , you are thinining out the crowd of interested people too.

If it was me, just pay out of pocket and move on. Been there , done that.

Eric Schott

Exactly what I was thinking. A carfax with no accidents vs. a carfax with an accident is worth what $$$? So many people would move on and not even look at the vehicle. Get your money now.

MDMOORE99

YATAH