Insurance Claim < $500

[BeautifulKay]

My car was rear ended.

The other party was putting conditions as to me not contacting their insurance if they give me their info.

Had to convince the cop to write a report as the other party was not sharing info.

Anyway - I got the police report and got an appraisal for the damage.

The damage is around $450.

My insurance send me a letter saying that since the amount of claim is less than the deductible they won't pay.

Do I have to bear the cost even when I am not at fault ?

How can I make the other party's insurance pay ?

Thanks

 

[djs]

Just file a claim with the other parties insurance.
After you do this, it will take a few days. They will contact their insured, get their side of the story and then do a fault determination. Just be patient through this part. It usually takes 2-3 days, but may take up to 30.

As long as their coverage is valid, you will be good to go. They will work with you to get your car in the shop and get you a rental car while your car is being repaired.

I wouldn't worry about any agreements to not contact the insurance company. That cannot be 'negotiated' at the time of an accident.

The alternative to the above is to ask the other party to pay the $450 repair bill out of their pocket. They may prefer this option.

Dan

 

[BlockO]

The alternative to the above is to ask the other party to pay the $450 repair bill out of their pocket. They may prefer this option.

The other party would be crazy not to pay out of pocket. $450 is a lot less than the extra premium they will pay for 3-5 years for having an at fault accident on their record.

 

[djs]

This varies by state a lot.

In CA, this small of a claim would be rated as a no fault accident. There would be no surcharge because of it. This amount is based on the total loss amount, not the claim amount.

Also, there is a police report filed so it will likely be picked up by the carrier anyway since it will show up on the next pull of the DMV report.

Dan

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I happened to find a reference for a couple of other states. Not a universal way of applying how this counts, it is VERY state specific.

Examples of states that limit surcharges are:

Massachusetts. The state ONLY allows surcharges for an accident IF:
You are more than 50 percent at fault and the claim amount is over $500 (after your deductible).
Example: An accident with $800 filed as the claim cannot result in a surcharge if your deductible is $500, because the claim only costs the insurance company $300.
New York State. In NYS, insurance companies CANNOT raise your base premium IF:
You filed your claim under your comprehensive coverage.
The total damage from the crash is under $2,000 and no one was injured or killed.
NOTE: If you are in 2 accidents or more — even if the total damage for each was under $2,000 — your auto insurance company can issue you a surcharge.

Ref: Why Car Insurance Rates Go Up After Accidents | DMV.org

The $2000 in NY is an interesting amount. This would eliminate a lot of surcharged policies for little, very minor fender benders. Of course, this causes slightly higher rates at the same time....

Dan