Car insurance question

[staceyv]

I caused an accident Monday morning on my way to work. Totally my fault- I pulled in front of some guy when I was trying to take a left turn- I must've looked too far up the road and not directly in front of my face before I turned, anyway, he had no choice but to crash into me.

We got out and exchanged information. The guy was really calm and nice about it, he could've yelled at me and called me an idiot who doesn't belong on the road, but he was pretty cool.
He called me later on that day and said that if I want to, he can drop the claim on my insurance policy and I can just pay for the repairs out of pocket, if I want. I said it sounded like a good idea.
He got a few estimates, renging from $980 to almost $1200.
I could easily charge that amount on the credit card we are working our asses to pay off, IF it'll be worth it-

But I'm having second thoughts. Two girls at work told me that this accident and my measly $1000 claim shouldn't make my insurance go way up. Now, I thought that if you file a claim, it makes your insurance go up, but they said that it's my first offense and a small claim, and it would be stupid to pay out of pocket. So now I'm thinking- should I use the insurance? Which will be cheaper in the long run??

I tried calling Geico to get this information, but they refuse to answer my questions until I file my half of the accident report. I don't want to give them the information they need to start processing the claim, because this guy might drop the claim today if I want...

Is there a difference in the amount my insurance will increase if he files a claim or not? The insurance already knows about the accident, but does having a claim filed or not filed significantly affect my premium?
Do I pay out of pocket or through the insurance??

[lumberjim]

how much is your deductible? subtract that from the $1000 before you decide.

if he drops the claim, then it should not appear on your record with them. i don;t know that for sure. try calling a local insurance agent and asking that in a cute little girly voice. make sure you speak in hypotheticals. if it doesn't affect your record, i'd pay cash.

man, i fucking hate car insurance. you MUST have it, but if you use it, you have to pay more forever after.

[wolf]

Isn't GEICO the one that saves you money by having really cute commercials, but no local human agents? You do all the business with them by phone and don't have anyone in an office to deal with who wants to meet with you once a year to look at your insurance portfolio.

[Clodfobble]

We had a claim for an accident that involved $3600 to our car and probably only slightly less to the other car. Our insurance did not go up, although I've also been with them for 9 years and this was only my second claim. We use State Farm.

[SteveDallas]

Ahh I thought I just saw something on this.. our policy is at renewal time so I actually looked through it. If I'm reading this right, for Allstate, a "chargeable" accident involving only property damage (it's different if there are inuries or death) is one in which causes at least $1,050 in property damage above the amount of the deductible. However, it also says they can raise your premium for a chargeable accident even if no claim results from it.

[LabRat]

(my husband is a shelter agent) #1, what's your deductable? #2 tho it may not cause your current rates to go up, if you want to change your policy, or more importantly, switch to a company with people whom you can talk face to face, the new company will likely charge you more because of the accident on your record, or worse, not take you at all. In this case, I would NOT claim it. Your deductable is likely at least $500, which no matter what you have to pay, so I personally wouldn't risk my future rates for another $500-1000 now. If you upped your deductable to $1000 to save on your premiums, then it's really dumb to claim it. Good Luck.

[smoothmoniker]

don't do it! go through your insurance. I know the guy you hit seems nice, and that it doesn't seem like much damage. Here's the nightmare scenario:

You pay $1000 in cash. In some states (read your policy) this means that you have assumed the liability from the insurance company, and that they are released from all obligation toward that incident. In 3 months, the guy you hit starts to feel massive ongoing pain in his back from the accident, and racks up $30,000 in medical bills.

You've already assumed liability for the accident, so now your insurance company refuses to get involved. You have no legal help, no financial help, and you're out much more than any raise in premiums.

-sm

[mrnoodle]

sm is dead on. I caused an accident when I was 16 and the woman in the other car suddenly came down with a $15,000 neck injury about a month afterwards. Pleasant as anything at the time of the wreck, but the $$ signs were too much for her to resist later on.

[staceyv]

well, I thought about that, because I've heard horror stories. But, what if I had him sign a waiver for all future responsiblity to the car or his health? wouldn't that protect me?

I've been with Geico almost 7 years and I can't find better rates anywhere else, AND, I don't want to deal with a live salesperson- computers are more reliable and less irritating, plus I can chew food and drink water and smoke cigarettes while on the phone with a computer, so that's okay. I don't want to switch insurance. My deductible is $500.

[mrnoodle]

doesn't matter what he signs, he can still sue. The irritation and time lost for a frivolous lawsuit is the same as for a real one. CYA, because the easy way out is rarely easy, or a way out.

[LabRat]

I guess I trust human beings too much. A kind of similar situation happened to me when I was 16, tho the damage was only $500, and it was a chinese college student I backed into. I paid the guys repair bill, (not him), and I never heard from him again. Never told my dad about the accident, but my mom knew , I had to bum the money from somewhere...

[BigV]

Originally Posted by lumberjim

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man, i fucking hate car insurance. you MUST have it, but if you use it, you have to pay more forever after.

This is known as The Truth.

btw, in my experience, having called the insurance company already, you've probably started the chain of events that will cause your premiums to rise. Although since they rise anyway, how can you say the call was the reason. Maybe better to say "cause them to rise faster than they would have had you not called.

The insurance companies are all about RISK. having had an accident, you're a greater RISK to them, IRRESPECTIVE of whether or not you've filed a claim that causes them to pay (which may be the case if you have a sufficiently large deductible).

Good luck. I'd pay on the credit card. and I fuckin hate credit cards even more than I hate car insurance.