Surchage Question

[Denver Dude]

I recently backed into someone's car at night and did $690 in damage. My first accident ever. My agent recommended not turning it in to my carrier (Auto-Owners) because it would put me in a different classification and my rates would go up. He said I'd be better off paying for the damage myself.

I have four buildings insured with them, my car, and I have an umbrella policy. I have been insured with them through the same agent for 10 years.

Does this sound right?

 

[agent m]

Actually since you told your agent, he has a duty to notify insurance regarding this. He acts as an extension of the companies/company he represents. I can understand not wanting to damage rates but if it turned into something bigger you would be hurting yourself down the road, I would think. Just my opinion on this. Others may have more concrete reasoning.

 

[CaptiveGuy]

$690 may be under their threshold for surcharging you as most companies surcharge claims over $750 or $1000. You may have your rating tier adjusted by losing a safe driver discount etc.

 

[BIG RED IS BACK]

Actually since you told your agent, he has a duty to notify insurance regarding this. He acts as an extension of the companies/company he represents. I can understand not wanting to damage rates but if it turned into something bigger you would be hurting yourself down the road, I would think. Just my opinion on this. Others may have more concrete reasoning.

Really? You dont advise your clients of what can/will happen?

 

[Newby]

I recently backed into someone's car at night and did $690 in damage. My first accident ever. My agent recommended not turning it in to my carrier (Auto-Owners) because it would put me in a different classification and my rates would go up. He said I'd be better off paying for the damage myself.

I have four buildings insured with them, my car, and I have an umbrella policy. I have been insured with them through the same agent for 10 years.

Does this sound right?

Definitely. Why do you have less than $1,000 deductible anyway?

 

[agent m]

Not saying don't advise, but I think he should let the insurance company know. I'm not a huge expert in this area.

 

[GreenSky]

Definitely. Why do you have less than $1,000 deductible anyway?

He may be talking about damage to the other car. In that case, no deductible.

Rick

 

[agent m]

Just my opinion on it, that's why I said others could provide more insight

 

[blue_wynd]

I recently backed into someone's car at night and did $690 in damage. My first accident ever. My agent recommended not turning it in to my carrier (Auto-Owners) because it would put me in a different classification and my rates would go up. He said I'd be better off paying for the damage myself.

I have four buildings insured with them, my car, and I have an umbrella policy. I have been insured with them through the same agent for 10 years.

Does this sound right?

Do you know if you have accident forgiveness? If you do and this is your first accident in quite a while, your rates won't go up.

 

[Guest]

Actually since you told your agent, he has a duty to notify insurance regarding this. He acts as an extension of the companies/company he represents.

With all due respect, I think this is terrible advice. As an agent I am an advocate for the client. I counsel my clients on the possible ramifications if they file a claim and then act in the way they direct me to.

To the OP.... It is not uncommon for your rates to be raised after an accident for a period of time (usually up to 3 years). If your deductible is $500 and you're only out an additional $190 by paying for it yourself, then that's what I'd do if I were you and that's what I would advise you to do if you were my client.

However, many insurance companies will offer accident forgiveness if you've been a long time customer and this was a first accident. Ask your agent if the company does that. Some companies do it and don't advertise it, its just the way they handle claims.

If your agent reports you to the company and they raise your rates, even if you don't file a claim, then its time to fire that agent and that company and find someone else to represent YOU.