Surchage Question

[agent m]

I mis spoke and here we are. Im not saying the agent should report without consent. It just seemed that the client should. That was all I ment... But lesson learned I will stay out if stuff not in my wheel house moving forward. Sorry if it came across differently. I'll return you to your regularly scheduled programming now.
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And then misspellings in my post to boot. Damn.

 

[BIG RED IS BACK]

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.

No Kidding, glad he aint my agent,

 

[Denver Dude]

Thanks for the feedback. I don't think my deductible ($1000) comes into play here. This was damage done to the other car.

I called Auto-Owners anonymously, and they said that if it's a first time accident and under $3000, I wouldn't be penalized. The agent told me just the opposite.

This is confusing. I wonder if the agent is trying to reduce his number of claims.

 

[Guest]

Thanks for the feedback. I don't think my deductible ($1000) comes into play here. This was damage done to the other car.

I called Auto-Owners anonymously, and they said that if it's a first time accident and under $3000, I wouldn't be penalized. The agent told me just the opposite.

This is confusing. I wonder if the agent is trying to reduce his number of claims.

If you aren't repairing your vehicle, only the other drivers, then you are correct there is no deductible. Your liability does not have a deductible.

As far as the agent trying to avoid a claim... In the grand scheme of things this isn't really a very big deal. Little fender benders happen every day and don't really have a very big effect on the bottom line.

 

[ctg]

Timely thread for me as well. The wife dinged a parked car backing out of her business parking lot. Scratched paint for us...$750 estimated damage for the other lady.

We have a $500 deductible, filed the claim for the other vehicle. No repairs for the wifes car. We can deal with a little scrape. I don't do P & C, did we make the right call? Can Denver Dude or I expect a premium increase?

And I wish they still made cars like my very 1st...1973 Mercury Montego. That thing was a tank. A little bump wouldn't cost $750!

 

[Norwayguy]

Timely thread for me as well. The wife dinged a parked car backing out of her business parking lot. Scratched paint for us...$750 estimated damage for the other lady.

We have a $500 deductible, filed the claim for the other vehicle. No repairs for the wifes car. We can deal with a little scrape. I don't do P & C, did we make the right call? Can Denver Dude or I expect a premium increase?

And I wish they still made cars like my very 1st...1973 Mercury Montego. That thing was a tank. A little bump wouldn't cost $750!

Nope just the cost of filling up the tank would

 

[ctg]

If I remember, it was about .65 a gallon. Early 80's I'm talking. I could get a 5 gallon gas can to mow the neighbors lawns for under $4. And we wouldn't fill the tank in our cars, we would put in $3 and "cruise the loop" all weekend.

 

[Guest]

We have a $500 deductible, filed the claim for the other vehicle. No repairs for the wifes car. We can deal with a little scrape. I don't do P & C, did we make the right call? Can Denver Dude or I expect a premium increase?

All depends on how your current carrier handles claims and surcharges. If you have a good record with them (no accidents) then they might not surcharge you. If you have a carrier like Progressive or SafeAuto I think they likely will because they probably will because they handle more of a high risk group and their clients are more likely to be involved in accidents.

Just from previous experience....

Recently I had a client who had an accident. She had been insured with the same company for several years, had no tickets, no previous accident claims, and was a low risk. She didn't get a rate up.

Another client had an accident (it was a pretty big claim, around $3K), he had a surcharge of $150 every 6 months. He'll pay the higher price for 3 years then it will fall off.

You should just do the math. Assume you will be surcharged about 20% for three years. Does the math work out that it will be cheaper for you to file a claim or pay the damage yourself?

BTW... This is all about auto only. If you're ever in a situation like this with HO you should never file a claim if the loss is less than $2,500, you should just eat it. That's also the lowest deductible I recommend for HO insurance.

 

[jmr30183]

Thanks for the feedback. I don't think my deductible ($1000) comes into play here. This was damage done to the other car.

I called Auto-Owners anonymously, and they said that if it's a first time accident and under $3000, I wouldn't be penalized. The agent told me just the opposite.

This is confusing. I wonder if the agent is trying to reduce his number of claims.

I was an agent for the #2 Auto-Owners agency in Georgia until last May. A-O advised you correctly, your first claim under $3000 won't affect your rates. That applies only to Preferred Risk customers (in Georgia, Preferred Risk customers are insured by their "Owners Insurance" subsidiary). The limit is lower ($1000-$2000) for Standard customers.

Report it, they'll pay it and you won't have any further issues. Auto-Owners is the most ethical insurance company I've ever dealt with and they're very fair. I have my parents, siblings, grandmother, several cousins and, of course, myself insured with them and couldn't be happier!