Crash -- I'm at Fault -- Should I File a Claim?

[bksubaru]

Today I caused a crash with another car. No one was hurt, no police report was filed ( I have up to 10 days to file one), though I did call my insurer, GEICO, to let them know, which perhaps was a mistake (I did not tell them I was at fault)

I am guessing the damage will be around $1,500 each. I have a $1,000 collision deductible. I have no tickets or prior accidents; i have GEICO's good driver rating. The other driver was cordial, and agreed to call me with her damage quote before submitting to my insurance.

My question is, if the damage is around $1,500 each, should I go through GEICO or just pay out of pocket? In other words, does anyone have any idea how much I'll be paying in surcharges and higher premiums if i (and the other driver) file a claim? Will i be paying more in the future than i can get now?

I am in New York City, if that matters

Thanks in advance for any advice

 

[Texasproducer]

Sounds like a question for your agent. I'm sure Geico can give you an educated answer. That's what you're paying them for.

 

[moonlightandmargaritas]

Today I caused a crash with another car.

The adjuster(s) will make that determination. Your "opinion" doesn't have anything to to with it.

My question is, if the damage is around $1,500 each, should I go through GEICO or just pay out of pocket?

Normally, it would make sense to pay for your own damage out of pocket - and leave GEICO out of it. If the other driver files a claim, you're out of luck, you've got a property damage liability claim. If it's any consolation, there's no deductible to meet for PD claims...

 

[BlockO]

I am guessing the damage will be around $1,500 each. I have a $1,000 collision deductible.

My question is, if the damage is around $1,500 each, should I go through GEICO or just pay out of pocket?

to do the math: 2000 / 35= 57.14.

So.... If you file this claim, will having an at fault accident on your record cost you more or less than $57 per month extra?

In your case, since your record was clean prior to this, I would say much less.

And therefore, you should file the claim, IMO. However, don't make another decision until you've seen the actual costs. Guesstimates always seem to be way off from actual estimates.

Also, the 35 divisor changes from company to company. some companies go back 36,59 or 60 months for at fault accidents. I have no idea if the lizard goes back 3 years or 5.

 

[djs]

I like BlockO's way of looking at it, as long as you realize the math is more complex due to policy renewal periods and stuff, but using the paid loss divided by the max months it will have any real impact is a good baseline.

I don't know anything about New York rates and how much you would be impacted if determined at fault, but it sounds like you are better off going through the insurance company since it will probably be close. Plus, as BlockO indicated, your personal estimates tend to be way low on the little damage claims, unless you have experience in the area.

Dan

 

[Milkman1265]

to do the math: 2000 / 35= 57.14.

So.... If you file this claim, will having an at fault accident on your record cost you more or less than $57 per month extra?

In your case, since your record was clean prior to this, I would say much less.

And therefore, you should file the claim, IMO. However, don't make another decision until you've seen the actual costs. Guesstimates always seem to be way off from actual estimates.

Also, the 35 divisor changes from company to company. some companies go back 36,59 or 60 months for at fault accidents. I have no idea if the lizard goes back 3 years or 5.

BlockO, can you expand on doing the math this way? Are you just estimating 2000 for damages and 35 months?

As a min/baseline the carrier will charge you back the money they paid you for over the span of 3 years/35months?

 

[BlockO]

2000 was based on the OP's guesstimate of costs (of how much the claim will pay). As DSJ and I both mentioned, that number could change drastically when the real estimates come in. 35 is the number of months that an at fault accident on his driving record will ding his premium if he chooses to file the claim.

Divide the two and you can weigh the baseline of costs to see which is the better option. And as DSJ pointed out, the true calculation is more complex than that. But this is a short simple way to give you an idea.

 

[bksubaru]

I'm the OP...thanks to all for the advice. I did decide to go through GEICO, taking the chance that I'll probably still come out ahead, given my prior clean record. (I called GEICO and asked how much my premium might go up, naturally they couldn't say). I guess I will know the answer at renewal time.

 

[BlockO]

As a min/baseline the carrier will charge you back the money they paid you for over the span of 3 years/35months?

sorry, I overlooked that part earlier. don't think I explained that part well enough....

yes, the 35 divisor is how many months the carrier will ding you in extra premium for having an at fault accident on your record. Some companies go back 35 months, some go back 36. Either number will work because this is just a ballpark estimate. To be more accurate on the 35 divisor, you would need to know the renewal date. so the divisor can range anywhere from to 35-41 on a six month policy.

I realize that many carriers go back 5 years on at fault accidents. But I wouldn't use that divisor because the customer can always shop around with companies that let the accident fall off in 3 years, once that time passes.

I hope this helps explain things and makes sense to you. I know my mind is kind of scattered sometimes.

 

[FullAuto]

File the claim. If you pay out of pocket for the other car based off a shop estimate, you're going to get hosed. Geico will pay considerably less than what the shop writes as their estimate.