Not Sure what to Do About Accident with Friend's Car

drivingisfun

New Member
2
Hello,

Forgive me in advance for my lack of knowledge about auto insurance, but I'm in quite a pickle and wanted to see whether someone has either been in this situation or can provide some helpful advice.

A few weeks ago, I hit my friends parked car (they were not in it) in my other friend's driveway. There was no damage to my car, but his damage is an estimated $1,200 to fix (this is about the average of 4 estimates he received). I'm in between paying out of pocket for his damage, but have also considered filing an insurance claim (since there is no damage to my car, there is no deductible); however, I am unsure of how much my annual premium will go up and for how long the increased premiums will go up for. I called the insurance company to get a ballpark range, and they were very vague in providing a number (even when I said that the difference between saying hundreds a year to thousands a year would even be helpful). They cleverly transitioned this to me reporting the accident and when I asked whether my mere inquiring and notifying them of the accident will in itself will warrant increased premiums (as I did not even file a claim); again, a vague answer. I got off the phone after giving them a few details in fear of getting screwed.

My friend is asking whether I'm going through insurance or if I'm going to pay for the damage out of pocket. I'm inclined to pay out of pocket, but if the premiums don't go up that much I would be more inclined to file an insurance claim. I currently pay about $85-$90 a month for car insurance. In all of this, I have a few questions:

1) If you've been in this situation or know of anyone who has been in this situation, for how much and how long could I expect the premiums to increase? Even a ballpark range would be helpful, as I have no idea (trying to see whether the premiums overtime will cost more than paying $1,200 out of pocket).
2) If I call my insurance provider and tell them I did not want to file a claim, and that the accident did not happen, will my premiums go up regardless?
3) What would you do in this situation?

Thanks a lot in advance to anyone that can help me out!

Regards,
Bill
 
The answers to your questions can vary greatly from company to company.

some companies go back 3 years for accidents, others go back 5. some go in-between, going back 5 years but dropping the rating down from an at-fault to a not-at-fault after 3 years..... so the company you're with makes a big difference.

also, the state you're in, your age, anything on your driving record besides this, are other factors to play into that.

9 times out of 10, I recommend eating the $1200, and not filing a claim. but every situation is different, so not always.
 
If you want a very, very, very rough number, figure 30-50% premium increase for 3 years. There are to many other variables to say for sure what the exact increase will be and every carrier is signficantly different. This is why its vague, there is no real answer.

Bottom line, in 3 years time, it will be about the same if nothing else happens. But.... now you need to include a rental car (few hundred dollars) and other trivial stuff, which will really put you on the edge.

I'd personally make use of the insurance companies money rather then my own, but either way works.

Also, depending on the state and the actual claim amount, it may not have ANY impact on your premium. In some areas, there is a claim threshold and small claims are not rated. This isn't true everywhere though, so very hard to say.

Dan
 
You are probably better off paying it unless you told the insurance company enough that they raise your rates anyway. WHo is your company?
 
In My area this wouldnt warrant a huge rate change , it is at fault though . But the dollar amount is fairly low. 3 years held against you. I'll guess at 20-40 more a month for 3 years and graduated down on year 3-5 with Progressive.
 
You are probably better off paying it unless you told the insurance company enough that they raise your rates anyway. WHo is your company?

My company is Geico - do you have any information about them?

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If you want a very, very, very rough number, figure 30-50% premium increase for 3 years. There are to many other variables to say for sure what the exact increase will be and every carrier is signficantly different. This is why its vague, there is no real answer.

Bottom line, in 3 years time, it will be about the same if nothing else happens. But.... now you need to include a rental car (few hundred dollars) and other trivial stuff, which will really put you on the edge.

I'd personally make use of the insurance companies money rather then my own, but either way works.

Also, depending on the state and the actual claim amount, it may not have ANY impact on your premium. In some areas, there is a claim threshold and small claims are not rated. This isn't true everywhere though, so very hard to say.

Dan

Thanks Dan! I have Geico and it's NJ
 
Hello,

Forgive me in advance for my lack of knowledge about auto insurance, but I'm in quite a pickle and wanted to see whether someone has either been in this situation or can provide some helpful advice.

A few weeks ago, I hit my friends parked car (they were not in it) in my other friend's driveway. There was no damage to my car, but his damage is an estimated $1,200 to fix (this is about the average of 4 estimates he received). I'm in between paying out of pocket for his damage, but have also considered filing an insurance claim (since there is no damage to my car, there is no deductible); however, I am unsure of how much my annual premium will go up and for how long the increased premiums will go up for. I called the insurance company to get a ballpark range, and they were very vague in providing a number (even when I said that the difference between saying hundreds a year to thousands a year would even be helpful). They cleverly transitioned this to me reporting the accident and when I asked whether my mere inquiring and notifying them of the accident will in itself will warrant increased premiums (as I did not even file a claim); again, a vague answer. I got off the phone after giving them a few details in fear of getting screwed.

My friend is asking whether I'm going through insurance or if I'm going to pay for the damage out of pocket. I'm inclined to pay out of pocket, but if the premiums don't go up that much I would be more inclined to file an insurance claim. I currently pay about $85-$90 a month for car insurance. In all of this, I have a few questions:

1) If you've been in this situation or know of anyone who has been in this situation, for how much and how long could I expect the premiums to increase? Even a ballpark range would be helpful, as I have no idea (trying to see whether the premiums overtime will cost more than paying $1,200 out of pocket).
2) If I call my insurance provider and tell them I did not want to file a claim, and that the accident did not happen, will my premiums go up regardless?
3) What would you do in this situation?

Thanks a lot in advance to anyone that can help me out!

Regards,
Bill

Well I know a company that will help pay for the cost for only $20 a month.
 
I'm not a P&C guy, but for me... on a deal like that, I'd just pay for it. Not worth the potential problems and/or rate increases later. Would be different if it was alot of $.
 
If you can pay it, I would pay it but I bet it wouldn't raise it that much if you did turn it in either...either way your going to have pay for it one way or another, if you turn it in you don't have to pay it up front but you possibly may pay in higher premium so think about it that way.
 
Well I know a company that will help pay for the cost for only $20 a month.

My company is Geico - do you have any information about them?

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Thanks Dan! I have Geico and it's NJ



Worked for GEICO, saw the difference between clean history and one minor at-fault accident (over $500). Surcharge for the 6-month period was rarely ever more than $300. This is also in FL, on a lot of customers in metro areas, so very high rates to begin with. Surcharges lasted only 3 years.

3*2*300=potentially an additional $1800 in premiums assuming no other changes. This is from the front lines of your insurance company, but in probably a different state so it's not perfect.

Here's my big concern, though: From the sales side of things, when we're giving quotes, if you mention you got into an accident but explicitly say you didn't claim anything on insurance, doesn't matter. It's a strict part of our guidelines to now include that accident in your rates. I'm fairly certain the service/claims team would have to do the same.

A lot of this will likely come down to how you worded your inquiry. If you said something like, "Bumped my friend's car, if I claim this how much will it raise my price?" - Good chance they're already going to count it against you.

If it was more pure theory like "If I get into a minor fender bender and claim it, how much will my price raise?" - Good chance you're in the clear.

If it was the former, you may be at a point now where you may as well let them pay for it, because you'll pay for it in your premiums anyway. Let alone if the mechanic comes back and says "sorry, we found more damages as we started repairing than what we quoted you. It's actually going to be more like $3000". And then let alone rental car for your pal while the car is repaired.

If you talked to GEICO with language like the latter example, and you can afford to just pay for this yourself, I'd go that route (as long as he has not tipped off his insurance company at all either).

Hope that helps out
 
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