New damage claims involving pre-existing damage

Short answer:

If damage is reported on a part of your car where there is also pre-existing damage, the cost to repair the pre-existing damage won’t be covered under this claim.

The exclusion of pre-existing damage is listed in the Owner Supplement under clause 11.7e.

Determining repair costs for the new damage

If we’ve made a previous cash settlement for damage to the same part, we’ll get a quote to repair the entire area. The previous settlement amount will be deducted from the quote and only the difference between the full quote and the settlement amount will be considered in this case.

For example:

  1. In July you receive a cash settlement for $250 for some minor damage to your bumper
  2. The following February you submit a new damage report for a dent in your bumper
  3. We get a quote to repair the whole bumper for $600
  4. $600 - $250 is $450 so this claim is for $450 to repair just the dent

If we haven’t made a previous cash settlement for damage to the same part, we’ll get a quote to repair just the new damage.

Settlement options

You can choose to:

  • take a cash settlement for the cost of repairing the new damage (as determined by the process above) OR
  • have Car Next Door manage the repairs for the whole area and you cover the cost of repairing the pre-existing damage (either the amount you previously received as a cash settlement or the difference between quotes for repairing the whole area and repairing just the new damage)

If you choose to have the damage repaired, the amount you’ll pay depends on your Sharing Plan.

Instant Keys Plus+ or legacy $60/month Sharing Plans

Cars on our Instant Keys Plus+ or legacy $60/month plans are covered by our insurance all the time. If the pre-existing damage occurred while your car was on one of these plans, you’ll need to pay the cost of repairs up to your Damage and Loss Liability amount.

If the damage was pre-existing when your car joined Car Next Door, it won't be covered by our insurance. You'll need to pay the full cost of repairing the pre-existing damage and make a claim with your insurer at the time the damage occurred.

Instant Keys and Key Handover

Cars on our Instant Keys and Key Handover plans are only covered by our insurance during bookings. If the pre-existing damage occurred while your car was on one of these plans (or before your car joined Car Next Door), you’ll need to pay the full cost of repairing the pre-existing damage and make a claim with your own insurer.

If you believe the pre-existing damage was caused by a Borrower, submit a separate damage report (bearing in mind that we will only investigate damage that was caused within 42 days of the report).

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