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 Posted: Mon Jun 01, 2009 2:54 pm Post subject: Should I file a claim or pay out of pocket??? |
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I am a PA resident and got in a fender bender in NJ. The Police officer who arrived and filled out the report stating the accident was "obviously" my fault mentioned that in NJ I did not have to file a claim with the insurance company. I asked the other driver to get estimates to fix her car and send them to me. The damage to her car can be fixed for $2400. I pay around $600 a year for insurance with a $500 deductable. Is it worth filing a claim and taking the increased rate and charge backs and having the accident on my record or should I just pay out of pocket to fix the other driver's car and be done with it??
Thanks
Mike |
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blueliner6
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| Posted: Mon Jun 01, 2009 3:26 pm Post subject: |
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Did you receive a ticket as a result of the accident? If so, then it will be on your driving record regardless of whether you pay out of pocket or not.
That being said, If the repair bill is 2400...the insurance company is going to have to pay 1900. I doubt your insurance would go up that much per year for a minor claim.
I would be very hesitant to pay out of pocket simply because I would be worried about medical bills or other situations popping up. If you pay out of pocket, it may end up costing you way more than $2400!
There's a lot of adjusters on this forum with a lot of great experience. I'm sure they'll be along with their advice shortly! |
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ChrisBantly
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| Posted: Mon Jun 01, 2009 3:52 pm Post subject: Should I file a claim or pay out of pocket??? |
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| Yeah I was refering to my insurance claim record rather than my driving record because there was no ticket issued. I guess my concern is when I look into reevaluating my coverage in a couple of years I'd be worried about not getting new coverage or it being very expensive. Thanks for the advice. |
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blueliner6
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| Posted: Mon Jun 01, 2009 4:27 pm Post subject: insurance |
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| OP.......is that the ONLY accident you've been in? If so ( had 'personal experience' with this issues..) then your insurance shouldn't og up ( if it DOES..) very much. However........I don't know how long you've been driving, what kind of driving record you have, etc. I've been driving since I was 21. I'm 45 now and 2 accidents ( both were 'no-fault' accidents). |
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sdchargersfan
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| Posted: Mon Jun 01, 2009 4:27 pm Post subject: |
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Sounds like the officer has never perused the "notice" section of the policy. You can't rely on representations made at the scene about injuries.
These situations have a way of getting out of hand. You prepared to pay this lady's rental car expenses? Or pay a supplement for "hidden damages"?
If things break the wrong way, you'll have to be more concerned about present than future insurance.
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flint
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| Posted: Mon Jun 01, 2009 8:06 pm Post subject: |
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| Quote: | | The damage to her car can be fixed for $2400. I pay around $600 a year for insurance with a $500 deductable. |
You don't have a property damages deductible. The deductible only applies to your vehicle. So it's a difference of you paying $2400 and assuming liability or your carrier paying $2400. |
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tcope
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| Posted: Tue Jun 02, 2009 3:35 am Post subject: |
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tcope was right on target when he pointed out that there's no deductible on liability claims. If you filed the claim and it truly was your fault (as the cop claimed, and they don't have a clue in these thing most of the time), your insurer would pay her car damage claim fully, assuming it was within your policy limits for property damage liability.
flint brings up a good point as well- will you need to pay her rental expenses while her car is in the shop? As well, when they do the tear-down for the repair, there's a possibility that the body shop could find additional damages. Since we don't know the specific of the accident, we can't comment on that one. So, are you ready to shell out possibly hundreds more?
The effect on your policy? Since you're only paying about $600/year, you're probably in a preferred risk class and have a good driving record, because those are pretty decent rates in PA. Do you know if your insurance plan has any "accident forgiveness" or other discounts/programs you're eligible for? If so, it may have a minimal effect, if any, on your rates. Look at your policy and/or talk to your agent. If you talk to your agent, make sure he understands that you are NOT filing ANY CLAIM!!! Probably even better to make it sound like a hypothetical question, if ya get my drift.
Absent of any "forgiveness" you may have, the normal surcharge for your first at-fault accident with MOST carrier in MOST states is 10-25%. So, you rates would likely go up to around $750 a with a 25% hike and last for about three years. That's a lot cheaper than you paying out $2400 (+). Check with your agent...he/she should be able to assist. Finally, if you do make a claim , it will be tougher to find a different insurer that will take you on with a recent at-fault accident, if you decide to change carriers. And don't think just because you didn't get a ticket or didn't file an accident report that nobody will know about the accident. If you file the claim- you'll be part of a national database. If you are required to file an accident report, well, that one's up to you. It's legally required if the damage exceeds a certain amount. So, if you file an accident report and don't file a claim- eventually (most likely) your insurance company will find out about it anyway. This one's less likely.
So, damned if ya do and damned if ya don't. Pick your poison.
InsTeacher 
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InsTeacher
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| Posted: Tue Jun 02, 2009 7:15 am Post subject: |
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Hi Blueliner, this is actually your call. Would be comfortable in paying the damage amount out-of-pocket? Tcope is right the deductible wouldn't apply to the liability coverage. Hence I'm not worried about your deductible rate. But I've got a hunch that things would soon start taking different course if you try to settle things of your own.
How do you know that the amount quoted by the other driver about his damages is right?
Can you be sure that he wouldn't claim more in the future for the same damages?
BTW, was that driver injured too?
~Jeremy |
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JeremyHolter
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| Posted: Tue Jun 02, 2009 7:24 am Post subject: |
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Hi blueliner6,
| Quote: | | I guess my concern is when I look into reevaluating my coverage in a couple of years I'd be worried about not getting new coverage or it being very expensive. |
You need not worry about non-renewal of policy unless it's a huge damage caused by you. For minor claims rates shouldn't go up that far.
But your overall insurance record takes a count of both physical damages caused to the other party's car as well as the bodily injuries caused.
Weren't there any injuries caused to the other person?
I doubt, since you haven't mentioned about the possibilities of your bearing such expenses concerning bodily injuries.
Steven |
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steven
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| Posted: Tue Jun 02, 2009 11:52 am Post subject: Should I file a claim or pay out of pocket??? |
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Thanks for the good advice everyone.... you've all convinced me to file a claim and I feel comfortable now doing that. Some of you were wondering.... this is my first accident in about 20 years and there were no injuries in the accident. Thanks again for the help!
-Mike |
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blueliner6
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| Posted: Tue Jun 02, 2009 12:08 pm Post subject: |
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| Quote: | | there were no injuries in the accident. |
You live in NJ... so you need to end that with "yet".  |
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tcope
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| Posted: Wed Jun 03, 2009 6:31 am Post subject: |
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Since this is you first accident in 20 years (Wow!) you may win a forgiveness from the insurer this time, means that your rates may remain unchanged.
Insurers at times take a lenient approach to retain their longtime, loyal customers and may overlook an accident or so. But again every company is different. And, if you face a rate change you can always shop around for better price.  |
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simon
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| Posted: Thu Jun 04, 2009 1:11 pm Post subject: |
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Hi blueliner6,
Would you care to share your settlement outcomes with us?
We'd be eagerly waiting to hear that your claim gets settled for something worthy of your good track record.
Steven |
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steven
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