Premium Increase Versus Out of Pocket Expense

[statusone]

Hi Everyone,

I had a quick question I was hoping to get answered here as I just called my insurance company (Progressive) who said I couldn't ask this question without it being noted on our policy.

I got into an accident with our car scraping a concrete wall on the runway to our parking garage on a rainy evening. My wife followed that accident with one of her own in the same parking garage of ours by hitting the back bumper and bending a side panel in.

My question is is there any ball park how much our premium would go up after these accidents? The repair is quoted at $1400 and our deductible is $200. Neither of us have an accident on our record and we're paying $330 every 6 months at the moment. I'm basically weighing $1200 versus any potential premium hike in the long term. Thanks!

 

[BlockO]

This is just my opinion....

paid loss would be $1200. $1200 divided by 59 months (which is how far Progressive goes back on at-fault accidents) equals $20.34.

So would having an at-fault accident on both you and your wife's driving record raise your rates by more than $20.34 per month?

My best guess is either yes or very close to a wash.

If I were in your shoes, I would eat the $1200. But other agents that are more experienced with claims than I am might disagree.

Had this been a single accident, I'd lean towards filing a claim. But a single vehicle crash that pays out in collision always shows up as an at-fault accident on that driver's CLUE report. You and your wife both being nailed with that I don't think is worth $1200.

Also, not all companies go back 59 or 60 months, some of the non-standard companies only go back 35 or 36 months, which would nearly double the math. But it still doesn't change my opinion. I would eat the $1200.

 

[AgentProvocateur]

Hi Everyone,

I had a quick question I was hoping to get answered here as I just called my insurance company (Progressive) who said I couldn't ask this question without it being noted on our policy.

I got into an accident with our car scraping a concrete wall on the runway to our parking garage on a rainy evening. My wife followed that accident with one of her own in the same parking garage of ours by hitting the back bumper and bending a side panel in.

My question is is there any ball park how much our premium would go up after these accidents? The repair is quoted at $1400 and our deductible is $200. Neither of us have an accident on our record and we're paying $330 every 6 months at the moment. I'm basically weighing $1200 versus any potential premium hike in the long term. Thanks!

The damage would be considered as resulting from two separate accidents, so the deductible needs to be considered twice. I wouldn't rely on anyone's estimate of how much your rates will increase for two at-fault accidents. Your rate could double, and the rates will be higher for three years. I'd pay it out of pocket, unless the cost is burdensome for you.

 

[BlockO]

The damage would be considered as resulting from two separate accidents, so the deductible needs to be considered twice.

I assumed they had $100 deductible and added them together. But if not, I would definitely eat $1000 in this claim.

 

[F150]

This is just my opinion....

paid loss would be $1200. $1200 divided by 59 months (which is how far Progressive goes back on at-fault accidents) equals $20.34.

Where the hell did you get divide the payout by a certain number of months? LOL, thats a new one....

 

[BlockO]

We actually discussed this a month or two ago. You must have missed that thread.

http://www.insurance-forums.net/for...rash-im-fault-should-i-file-claim-t61710.html

This is merely a quick rough estimate method which allows you to measure the premium effect of filing a claim vs. eating a claim.

It's no where near 100% accurate but it comes about as close as you can get without the benefit of hindsight. Inaccurate estimates throw the top number off and renewal dates throw the bottom number off. But it gives you a quick ballpark estimate to see whether or not it's worth it to file a claim.