Should I Pay for the Fix After an Accident and Not Use my Insurance?

ttrongman

New Member
2
I was involved (and at fault) in a minor accident in a parking lot which resulted in scratches on both car. I've already submitted a claim through my insurance. The other side forwarded me an estimate to repair the scratches on his car bumper, and it was about $900.

Could anyone advise whether I should pay this or ask my insurance company to pay it? The thinking is I hope if I pay it out of my pocket, my premium won't go up - not sure if this is correct. And if I use my insurance to pay, my premium will go up and last for 3 years (from my past experience), and in the end what I'll pay for the increase in the premium (over 3 years) will be more than $900.

Please advise.
Thanks.
 
Part of the answer will depend on what state you are in.

File the claim. Lots of variables here, such as other incidents on your policy, but since you already filed a claim with your carrier, just go ahead and see it through.

If you have accident forgiveness, it will be an almost non-issue. (Almost because you will use it here). If not, if the premium increase is noticeable, shop around for a different carrier when the renewal comes in. Or, if you carry low deductibles, consider raising them some to offset some of the premium increase.

Dan
 
The funny thing is I didn't intend to file a claim, but only called to confirm whether the incident would make my premium go up. The rep said said since I called them, they had to open a claim. Dang, I was so naive :(

That said, for the next time I shop for insurance, the question always comes up "Have you involved in an accident in the last so and so year?" Now, I have to answer "Yes", right?
 
The funny thing is I didn't intend to file a claim, but only called to confirm whether the incident would make my premium go up. The rep said said since I called them, they had to open a claim. Dang, I was so naive :(

That said, for the next time I shop for insurance, the question always comes up "Have you involved in an accident in the last so and so year?" Now, I have to answer "Yes", right?

Right, otherwise, if you say no, you would be making a statement that could be a "material misrepresentation" and possible void coverage. That being said, depending how long ago it is, you may get charged for it or now. Depends.
 
You would have had to say yes anyway, technically speaking. You were involved in the accident.

In the end, it isn't that big of a deal. Basically, you'll be making payments on the damage rather than paying it all upfront. Not the end of the world.

Dan
 
As a general rule, I would handle anything under $1500 out of my own pocket rather than turn it in to insurance.

Break-even with future premiums is probably lower depending on the individual situation but I believe in self-insuring when possible. You never know when a bigger, not-so-manageable accident changes your insurability, especially if there are youthful drivers in the equation.
 
As a general rule, I would handle anything under $1500 out of my own pocket rather than turn it in to insurance.

Break-even with future premiums is probably lower depending on the individual situation but I believe in self-insuring when possible. You never know when a bigger, not-so-manageable accident changes your insurability, especially if there are youthful drivers in the equation.

I think that's the right approach with first party claims, as long as their is no potential for hidden damage. Someone backs out of their garage and into the house...it's their choice whether they want to pay for it out of pocket or not. I always caution my clients that if they accept the claim, it's theirs and the company has little/no duty to indemnify them after the fact.
 
I think that's the right approach with first party claims, as long as their is no potential for hidden damage. Someone backs out of their garage and into the house...it's their choice whether they want to pay for it out of pocket or not. I always caution my clients that if they accept the claim, it's theirs and the company has little/no duty to indemnify them after the fact.

It works for some third-party situations as well. It depends on the client and their desire to go it alone. As you stated, with a clear understanding they may give up recourse with their own insurance. If they insist on this path I also encourage them to get a signed release upon settlement.
 
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