$1000 Repair, Better to Pay Out of Pocket or Go Through Insurance?

[chinwan]

Was in an minor fender bender, I was at fault. The damage was extremely minimal to the other person but they know i do not want to go though insurance, so they got a quote to replace the entire bumper for about $1000. I personally belive part of it is a shakedown.

At that price, is it worth if for me to go through insurance? I am in NJ, I have geico, have never been in an at fault accident. How much would my rates go up?

Thanks

 

[djs]

Why do you believe it is part of a shakedown? $1000 seems very reasonable for a bumper to me. Actually, if that is to replace it and paint it, then I would jump at it.

If you do feel its part of a shakedown though, go through insurance. The insurance companies know exactly what these repairs cost and won't get 'shaken down'. They may even opt to repair/recondition, not replace, the bumper. Probably not a lot cheaper though.

If it gets rated as an at fault accident, then there may be a premium increase on your next renewal. A lot of factors go into this, but you can usually estimate 25-50% increase. You would have to ask your agent, or in this case, Geico this question.

Dan

 

[VolAgent]

Since I've been through this a few times.

I'd probably jump at it. I have to assume labor rates in NJ are higher than here in TN. That sounds like a steal. Just make sure they sign something acknowledging payment in full for the claim and that they give up the right to sue or ask for any additional compensation later.

 

[Slassco]

Type of car make, model, etc would be needed to determine if 1k is reasonable. A Mercedes bumper part alone could be 900$. A Toyota bumper could be found aftermarket for 289$.

I would also see if it is repairable. Most bumpers are polypropylene which is very repairable, even with a 4" tear in it.

The average bumper on a foreign or domestic (exc high end cars) should be between 600-800$. Total

You may want to weigh paying the 1k versus filing a claim and having a possible rate adjustment. By filing you will be protected by GEICO from excessive repair costs, and don't forget possible 3 days of a rental car you may have to pay or any hidden supplemental damages not currently visible.

A licensed adjuster may determine it is repairable and only cost 400$ to fix, or find an!aftermarket or recycled part that cost 600-700$ to fix.

 

[The Colonel]

With most companies it's a "secret sauce" about how a claim impacts (if at all) future premiums. If you have been insured with your company for a while, pay your bills on time and don't have any other claims/tickets-I wouldn't worry about it.

 

[VolAgent]

Type of car make, model, etc would be needed to determine if 1k is reasonable. A Mercedes bumper part alone could be 900$. A Toyota bumper could be found aftermarket for 289$.

I would also see if it is repairable. Most bumpers are polypropylene which is very repairable, even with a 4" tear in it.

The average bumper on a foreign or domestic (exc high end cars) should be between 600-800$. Total

You may want to weigh paying the 1k versus filing a claim and having a possible rate adjustment. By filing you will be protected by GEICO from excessive repair costs, and don't forget possible 3 days of a rental car you may have to pay or any hidden supplemental damages not currently visible.

A licensed adjuster may determine it is repairable and only cost 400$ to fix, or find an!aftermarket or recycled part that cost 600-700$ to fix.

You are forgetting about labor and paint. The expense isn't so much the parts, as it is the labor. Also, paint time often bills out more than the physical labor of replacing parts.

It is possible the bumper could be repaired for less, but I doubt for much less. If the person really wants to settle it without insurance, I'd take the offer as long as they sign a release.

 

[axeman462]

As someone who worked in a body shop for 7 years doing paint and bodywork, I have seen thousand of estimates. I can tell you that the $1000 figure falls right in line with the average. Heres how it would probably break down: (keep in mind I live in Florida, so it can vary a bit from state to state, and shop to shop) (and this assumes a typical average car ie: ford focus, or honda civic)

LABOR HOURS:
Paint: 3.5 hours = $43/labor hour x 3.5 = $150.50
Body/Parts: 1hr = $43/labor hr x 1 = $43

SUPPLIES (paint, tape, paper etc..)
$512

PARTS (the bumper, nuts, screws etc..)
$300

Total:
$300 + $512 + $143.50 = $955.50

 

[Chevarian113]

How do you feel about the person you're dealing with? I ask this because if I felt like they were someone that would take the money and run, then turn around and file claim on my insurance, I'd let the company take care of things. If it feels like a genuine person and the estimate came from a reputable body shop and you feel the $1000 is all it really would cost, I'd pay it out of pocket.

I've been in this situation both personally and seen clients in it. I advise a client very differently, of course, but for me, I had him get an estimate, happened to know the body shop, called them and got explanation of possibility of further damages, then filed the claim. Turns out that it was a poor choice, my personal policy went up more than the cost of damages (total for the 3 years charged for the accident). The cost only matters if it is going to cross the threshold of surchargable or not in many cases, which is different for every carrier. Hind sight, I should have paid it out of pocket.

As someone said, every company has a different secret sauce as to how it will impact the policy, but I would put a lot of emphasis on feeling out the other person, good and bad can come of it.