Pay Out of Pocket or Let Insurance Pay?

[deanbrew]

I have auto insurance with Liberty Mutual, covering four cars and four drivers. I just found out my 19 year old son backed into an unoccupied car in a parking lot, causing a very minor scratch to our car (which I won't bother fixing) and also causing a very minor scratch to another car. He exchanged insurance info with the other owner. The other owner contacted his insurance and took the car to an auto body shop, who gave an estimate of $1,200. My son says the damage is very minimal and thought it should be a couple hundred dollars. Even the other owner says it is minor and he thought the repair would be less than half quoted by the auto body shop.

I want to have the other owner's car repaired, but I think the auto body shop is taking advantage of the situation. It is a small scratch on the plastic rear quarter panel, with no damage to any metal surfaces. I am unsure how to proceed. A few questions for auto agents, particularly if you are familiar with Liberty Mutual.

1. How much will my insurance premium go up if my insurance pays out +/- $1,400 (the other owner wants a rental car for four days)? And for how many years?

2. If I let my insurance pay, will I have to pay my deductible, which is $1,000? If so, that really makes this a no-brainer to pay it myself.

3. Since it has already been reported to my insurance, will it adversely impact my ability to change insurance companies if I pay it myself, and LM doesn't have to pay anything? The underwriter I spoke with said it shouldn't count as a "claim" if nothing is paid out, but I don't know what kind of database the insurance companies use.

4. How can I nicely suggest that the other owner go get another estimate from another body shop?

 

[F150]

repairs cost more then people think they do.....

get a second and third estimate

 

[Josh]

Does he want it fixed? You could also offer to settle with the guy for $500 and he might go for that. If someone scratched my car and offered $500 I'd take it with a smile.

No deductible with liability.

If it's under a grand it's usually under a surchargable threshold, but your rates could still go up by losing claim-free discounts.

You could suggest him get other estimates, but I'd go back to offering $500 as a complete and total settlement. He might not take it, but he might go for it.

 

[Aram Fingal]

If it's under a grand it's usually under a surchargable threshold, but your rates could still go up by losing claim-free discounts.

Because it's a collision claim, they'll may ding him for an at fault accident on the teenage son. Even though he won't get the claim surcharge, the accident is going to probably affect his rate. If it's already been reported to the insurance company, it's probably too late to avoid that.

It depends on the company. I've seen some just ignore this kind of event if there is no payout, and I've seen others say "Well, he still had an accident that was his fault".

 

[INSUREGEEK]

I've never, ever, heard of a plastic quarter panel except on an older Saturn. And those are bolt on-bolt off easier to replace than to repair panels.

A quarter panel repair involves removing the rear bumper and tail light, repairing the quarter panel, possibly removing any glass in that quarter panel, and blending the paint into the door so new paint/old paint appearance differences are nulled.

My body shop "ballpark" is $500 for every panel I touch. If I am into a quarter panel and a door, minimum $1000. I think the $1200 sounds about right not having seen the car.

On the other questions, you have your answers from the posters above me.

ETA: you should see what people want me to "buff out" of their cars.

 

[deanbrew]

I haven't seen the other car, or even any pictures. I only know what my son, the other vehicle's owner and insurance company told me on the phone. My insurance company said their estimate for repair is similar to the other insurance company's at about $1,300. In the end, I decided to let the insurance take care of it and hopefully won't have too large a premium increase next year. Kids. It's always something. Thanks for all advice and suggestions offered here.

 

[CKSINSURANCE]

you insurance will usually go up after first accident by 10% -30% depending on carriers. some will have accident forgiveness program for your first accident, which means you won't even get a surcharge. also for your 17 years old, the company must have surcharged for new drivers so they may not be able to surcharge again for the accident, remember these auto carrier's rates/surcharge factors are filed at least in CA.
Also only accident causing $500/$750 or more in damages after your deductible will get surcharged.