Dealership dropped something in cylinder head during spark plug replacement

MAybe we're trying to keep some unknowing soul from buying a truck with a major mechanical issue.

 

I know you're the insurance guru on here, but will insurance premiums go up because of something on a carfax report?

 

No... insurance companies run driver claims history & driving record to determine rates/ policy premiums. The only time they would look at a carfax or vehicle history report is if there is a claim filed against the vehicle. Vehicle history is important when determining the actual cash value, but has no bearing on the rate you pay.

 

That's what i thought. but based on @cromag27 comment about insurance going up, it sounded like he was saying in reference to Carfax.

 

not necessarily that. as already stated, carfax doesn’t include everything. insurance companies look at the real history of vehicles to determine their amount of risk. these things can include - total losses, types of damages, who fixed any damages, thefts, etc. insurance companies run multiple reports on vehicles that you know nothing about. depending on the damage that occurred and who fixed the damage, insurance premiums may be effected.

in sales, there were many times i’d have to tell people i can’t insure them because of the vehicle history. the car salesman would get on the phone and scream at me, the carfax is clean!!! i’d laugh and tell them the carfax report isn’t accurate, but our reports are accurate.

 

wrong. see my reply above.

 

oh, add title issues to that list as well.

 

So my insurance folks tell me my insurance (car and home) is largely based on my credit history/score...

Any thoughts??

BTW, thanks for the info here and in other threads about this stuff @cromag27

 

here’s a message someone got on their policing due to a previous theft we found out about. it wasn’t on the carfax report, nor the national stolen vehicle report.

 

true!!

https://www.tacomaworld.com/threads/the-official-insurance-thread.620973/

 

Insurance varies by state. I sold insurance policies and worked as a claims adjuster in North Carolina. When handling sales, I worked closely with our underwriters (the people that actually review/ determine the rate - the sales force is just the messenger of the rate). There were times when the underwriters denied coveage based on the vehicle history (for example, a vehicle with a salvage title), but that is it. If coverage was afforded, the premium was primarily based owner/ driver claims history, driving record, credit report, vehicle make/ model and primary use and storage location.

Suppose you have 2 vehicles that are identical except that one of them had an accident resulting in $2k worth of damage, which was fully repaired. All else equal, the one that was repaired doesn't pose more of a risk to the insurance company than the one with no accident damage. If anything, there is less risk because the ACV is lower for the vehicle that has repair history (i.e. the max payout is lower on the vehicle that has repair history).

 

Im sure the insurance company will reduce the payments of that owner accordingly lol

 

not necessarily. i also have claims and underwriting experience. and i work directly for an insurance company, i’m not some broker or independent agent.

like i mentioned before, prior damage and who fixed the damage can absolutely change your premium. even if you report a vehicle stolen and it gets recovered a few hours later - that too, can effect your premium. yes, all of this may vary from company to company and state to state.

so if your vehicle has $2k damage repair, that can effect your premium. if you have some shady mechanic do the work, that also can effect your premium. and like i also mentioned before, we have access to dozens of reports you know nothing about.

 

no, but the value may be decreased in the event of a total loss.

 

Why would previous damage or repairs from previous owner in any way affect the current owner's premiums. Seems like an easy way for insurance companies to charge more for no legit reason.

 

I think if anything they would charge less? Showing that kind of repair would reduce the value of the vehicle, which lowers the risk on the insurance side.

 

In theory yes.

So back to this original topic on the post, Insurance premiums would/could increase because there has been some engine repairs on this truck. EVEN though the insurance company is not directly involved with repairs on a vehicle. That's out of the owners pocket (most of the time).

 

insurance doesn't cover repairs that arent the result of an accident, so i dont see why it would increase insurance premium. that's what aftermarket warranties are for (and yah, for those, the premium would go up i imagine)

 

I just realized my punctuation would have been more important there. I meant to state all of that as a qestion. Fixed it.