Rental Car Small Accident Situation - what Can I Do?

[djs]

I guess I look at it from a pessimistic view. What happens when you turn this claim in let insurance pay then 6 months down the road have a decent sized claim that isn't possible to pay out of pocket? Then you have two at fault accidents on your record and are being thrown in to the substandard market. I've had clients that have had this happen and they come in and ask if they can pay back their initial small claim - at that point it's too late.

If the insurance company didn't know about it already and everything is a wash (which is basically is in this case), I'd agree. I've found out the hard way though, that even though accidents without any payout are rarely rated, the technical language is based on the total loss, nothing to do with the payout amount (over state based minimum claim for rating). In most cases, without a claim being filed, the insurance company isn't aware of anything.

In this case, I believe the insurance company already knows. The rental company has probably already filed a claim with them, with the amount of the claim.

Its a bad case of timing and circumstance. The good news is though, without a second event on the record, its slightly cheaper to file the claim and make 'payments', then it is to pay out of pocket. If it wasn't for the credit card coverage to pay the deductible, I would also advise to pay out of pocket and take the chance. Since the deductible is covered, its really a no loss situation to go through the claim process.

Dan

 

[seeeker]

Thank you for the dialog. This is what I need to hear from insiders. But Jesus my head is spinning. I have spoken about it with my local agent from Am Fam, with questions and general advice on what to do - but I have not filed anything. He is a nice guy and I have spoken to him over several years; but whether he has reported or recorded this incident unofficially, I don't know. That would be a dick thing to do in my opinion. In our conversation I state that I'm not filing a claim yet, just figuring out my options. I will ask him point blank on Monday.

The rental agency in St. Thomas is waiting for my claim to open up the process. Or a check from me. It seems like so many "what if's" and uncertainty. All I know is my agent has quoted me the increase.

Even if I make the claim and then shop around for new coverage, the new carrier will know, or will want to know, if I have had a claim, so I could still see an increase from a new carrier based on this experience.

Honestly, I would prefer to pay it out of pocket and be done with it. My summer is filled with family plans, and I really do not enjoy stressing about (two) pending claims and potential insurance rate hikes, it's just such a damn headache.

I just think it's wrong that even though I have insurance, I am still penalized, and considering a substantial out of pocket repair cost to avoid the headache of the whole repercussions. I have insurance, but I'm probably still screwed. Isn't this why I have insurance? For this very situation? I thought they were supposed to take care of me when incidents like this happen. But I feel like I'm about to battle my insurance carrier, when they say "hey we're here to take care of you when you have an accident." Obviously not.

 

[hesse]

Depending on your state generally a rental car claim is a liability coverage and not usually subject to a deductible. as for the rate increase why do you think you should pay the same amount as somebody like you that doesn't have an at fault accident? not fair to the person that doesn't hit objects

 

[stex]

Depending on your state generally a rental car claim is a liability coverage and not usually subject to a deductible. as for the rate increase why do you think you should pay the same amount as somebody like you that doesn't have an at fault accident? not fair to the person that doesn't hit objects

Your first statement is absolutely untrue.

 

[hesse]

Your first statement is absolutely untrue.

Renting a Car | The Office of Attorney General Lori Swanson

Under Minnesota law, all auto insurance policies must cover against damage to a rental vehicle and loss of use of the vehicle, and extend the policy’s basic economic loss benefits, residual liability insurance, and uninsured and underinsured motorist coverage to the use of the rental vehicle. This means that if you own a car and have car insurance, your rental car will be covered too.

State law prohibits car rental companies from selling collision damage waivers or other insurance products unless the renter acknowledges that they have read and understood a disclosure stating that a personal auto insurance policy must cover the rental of the vehicle and that purchasing these types of additional coverage is unnecessary.



I should have left the generally part out and just said depending on your state

 

[xrac]

Don't chase a bad incident with potentially bad advice. At this point, paying it yourself may not prevent the insurance premium increase. It might, but technically, it isn't what the payout actually is, it is based on the amount of damage done. Since its already been reported to the carrier, they can still rate for it and if you paid for the claim and then have the increased premium, that is a double whammy.

I don't understand the hesitancy of filing the claim with the carrier. Yes, all you are effectively doing is 'financing' the damage over 2 1/2 years (renewals have a funny way of making a 3 year rate increase be only 2 1/2). Also, some carriers have a higher 'penalty' upfront which then decreases over time, so it may not be as much as you think.

Also, when you get the renewal with the premium increase, you can shop the policy and see if you can get a better rate elsewhere. Accidents coming and going on a policy are a perfect time to do it. Don't worry about it though till you see the premium increase on a renewal bill.


Dan

Dan, as usual you provide a great answer.

 

[InsCommentary]

I guess I look at it from a pessimistic view. What happens when you turn this claim in let insurance pay then 6 months down the road have a decent sized claim that isn't possible to pay out of pocket? Then you have two at fault accidents on your record and are being thrown in to the substandard market. I've had clients that have had this happen and they come in and ask if they can pay back their initial small claim - at that point it's too late.

If having two claims in succession actuarially justifies a higher premium, why shouldn't they pay more than someone who hasn't had two such claims? Trying to "beat the rap" simply results in other drivers unfairly subsidizing them.