Should You Repair Your Car or Leave It as Is After a Crash?

After a car accident, you finally receive a check from the insurance company to cover the repairs to your vehicle. As you look at the check, a tempting thought might cross your mind: The damage is mostly cosmetic. What if I just cash this check and don’t fix the car? Maybe you need the money for other bills, or you simply don’t mind driving a car with a few dents and scratches.

While it might seem like a clever way to handle a difficult financial situation, the decision to pocket the money and not repair your car is almost always a bad idea, fraught with hidden risks that can cost you far more in the long run.

In almost every situation, the answer is clear: you should use the insurance settlement to repair your vehicle properly. Failing to do so can jeopardize your safety, violate your financing agreement, and complicate your legal claims.

Useful Information for You: In a Nutshell

• Yes, You Should Repair It: For safety, legal, and financial reasons, it is almost always in your best interest to use the insurance money to properly repair your vehicle.
• Hidden Safety Issues: Cosmetic damage can hide serious underlying structural or mechanical problems that make your car unsafe to drive.
• Your Lender Will Likely Require It: If you have a car loan or lease, your financing agreement contractually obligates you to keep the vehicle in good repair. Failing to do so can be a default on your loan.
• You Must “Mitigate Damages”: Not repairing your car can complicate future claims. If you are in another accident, the insurer will refuse to pay for any overlapping, pre-existing damage.
• Cashing Out is Risky: If you own the car outright, you can legally keep the cash, but you accept all the risks of driving a damaged vehicle and the significant loss in its value.

Reason #1: Your Safety is at Stake

This is the most important reason. What appears to be a minor dented bumper could be hiding a damaged impact absorber, a bent frame, or misaligned sensors for your airbag and safety systems. A seemingly cosmetic issue could be masking a serious structural problem that could compromise your car’s ability to protect you in a future accident.

Until a professional auto body technician has thoroughly inspected the vehicle, you simply do not know if it is safe to be on the road.

Reason #2: Your Contract with Your Lender

If you have a loan or a lease on your vehicle, the decision is not entirely yours to make. The bank or finance company is the legal owner of the car until it is paid off. Your financing agreement almost certainly contains a clause that requires you to maintain the vehicle and keep it in good repair.

• The Insurance Check: In many cases, the insurance check for repairs will be made out to both you and your lender, requiring their endorsement and ensuring the money is used for its intended purpose.
• Defaulting on Your Loan: If you cash the check and don’t repair the car, you could be in violation of your loan agreement.

Reason #3: The Legal Duty to “Mitigate Damages”

If you choose not to repair the damage from this accident and are later involved in a second crash, you will have created a major legal and insurance headache for yourself. The insurance company for the second accident will have a legitimate reason to deny paying for any damage that overlaps with the unrepaired damage from the first crash. It becomes nearly impossible to prove which accident caused which problem. By not repairing your car, you fail to “mitigate” (or minimize) your damages, which can harm future claims.

What if I Own the Car Outright and Want to “Cash Out”?

If you own your car free and clear, you are legally entitled to do what you want with the settlement money. You can cash the check and continue to drive the damaged car. However, you must accept the consequences:

• You are driving a potentially unsafe vehicle.
• You have significantly reduced the resale and trade-in value of your car. A car with unrepaired accident damage is worth far less than one with a clean bill of health.
• You will have major problems with any future insurance claims.

In the end, the insurance settlement for your property damage is intended for one purpose: to restore your vehicle to its pre-accident condition. Using it for that purpose is the smartest and safest decision for your physical and financial future.

If you are in a dispute with an insurance company over the cost of repairs for your Tacoma-area accident, you may need professional help. Search the Car Accident Lawyer Directory Tacoma to find and compare trusted local attorneys who can help you fight for a fair property damage settlement.

References

• Washington State Office of the Insurance Commissioner (OIC) – Getting your vehicle repaired:Official guidance for consumers in Washington explaining the claims process for vehicle repairs and your rights.https://www.insurance.wa.gov/getting-your-vehicle-repaired-after-accident
• Washington Pattern Jury Instructions (WPI 30.08.01) – Mitigation of Damages—Personal Injury/Property Damage:The official instruction for juries in Washington State, which explains a claimant’s legal duty to take reasonable steps to minimize their losses.https://www.courts.wa.gov/superiori/pattern_jury_instructions/WPI%2030.08.01%20Mitigation%20of%20Damages%20-%20Personal%20Injury.pdf