by rottig » Wed Oct 29, 2008 11:23 am
How does it affect the family policy.It was a fender bumper , the other party had no damage but is trying to get us to pay for both bumpers. I did not want to go through insurance so this party is taking advantage of us. How much would our insurance go up. He wants $1400.
Posted: Wed Oct 29, 2008 11:34 am Post Subject:
Hi, if the other hasn't suffered any damages then the chances are there that the insurance company will decline the claim after investigation or may be able to lower the amount of compensation asked by the other party.
The change in the rate may depend upon the company's business policy, but the insurance companies have the habit of severely penalizing the young driver even for the minor infractions.
~Jeremy
Posted: Wed Oct 29, 2008 11:35 am Post Subject:
You need to get this claim to your carrier ASAP, they can weed out any fraud...what exactly happened in the accident? What do you mean they want both bumpers?
Posted: Wed Oct 29, 2008 11:38 am Post Subject:
Hi rottig, you are not required to accept the amount charged by the other party. Ask them to get the damage evaluated at a body shop and accompany them there. It'll help you in getting a fair idea about the worth of the damages. You can also then decide whether or not to involve the insurance party in it.
Posted: Thu Nov 13, 2008 01:38 pm Post Subject: Some Thoughts about Paying Out of Pocket
You're going to like this answer: it depends.
Each company views claims differently, so it's difficult to say if it's worth it to pay out of pocket. For instance, one company might surcharge 10% for the accident. If you're already paying $1400/year to cover your son, then that's $140 x 3 year surcharge or $420. If that were the only consideration, then put in the claim. But it's not - you also have the incident on your record.
I've had several off-the-record conversations with policyholders about these incidents. If you have that sort of relationship with your insurer, then give your agent a call. If you're unsure, then it may not be safe to talk to them.
I also agree with Jeorge. If you decide to pay out of pocket, make sure you trust this other party's estimate before you pull out the checkbook.
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