To Claim an Accident or Pay Out of Pocket

[eagle1000]

Hi folks,

The story is regarding my policy with Liberty Mutual. We (were family of 5 when the policy started and presently down to my wife, daughter and me as 2 older children left the policy) live in Illinois and have never had an accident until my daughter had a fender bender 18 months ago. I say fender bender, but that still caused several thousands of dollars damage to each car that we had fixed under our policy.

Well, the same daughter had another fender bender a few days ago. My daughter asked the other party to see if we can do this without insurance, and they agreed. They just came back with an estimate from a shop of $2200. It could go up depending on what they find when they start the repair. Oh, and car rental for them for a week while the car is being repaired.

Do I call my insurance and ask for coverage? Is that allowable after the fact? If I do, any estimates on what increases there will be for my premium? How long does it take for the insurance premium to come down in a scenario like mine? Basically I'm trying to determine whether to call the insurance company. Right now we pay $2400 for 3 cars and 3 drivers, full coverage with $500 deductible.

Any educated guesses on whether I should go through insurance or pay out of pocket will be appreciated. Will claiming our car to be fixed (about $3,000K since damage was similar to last time) increase the insurance premiums more than not claiming it if we fix the other car under our insurance?

I've heard that even mentioning an accident could cause the premiums to go up. I don't know if Liberty Mutual is like that, and so I'm reluctant to call them to ask questions about this. Does anybody know?

Oh, if we do this without insurance, I'd ask the other party to sign a form relieving me of all future liabilities including any medical.

Thanks for any help.

 

[F150]

file the claim, cancel your daughters license and remove her from the policy.

 

[eagle1000]

Do you think it will it be more cost effective (over 2 years, say) to file the claim?

My first reaction was to take my daughter off the policy as well, but my wife suggested we keep her on and she now pays for all expenses for the car (insurance including the increased premium, gas, etc), and to pay for the damages.

So now I'm looking for information to present to my daughter.

Oh, if we file a claim, then remove my daughter, will the premium go up proportionally as much as if we keep her on the policy?

 

[djs]

Accidents are primarily rated to drivers, if you remove the driver, the biggest part of the premium increase will be removed.

Given the numbers you presented, file the claim, it will be the better thing to do.

Depending on the age of your daughter, buy her a 'beater' car, liability only, and have her get her own policy.

Dan

 

[Josh]

Dan nailed it. Be sure that when she is on her own policy she never drives any of your cars though.

Has she taken drivers safety? Does she text and drive?

 

[eagle1000]

Thanks all. I'll be filing a claim.

She has taken the defensive driving course. She says she doesn't text and drive, and I believe her.

The first time was in the winter and the guy in front of her stopped abruptly. Still she was following too closely, I imagine. This time she says she was looking at something else to the left when the car in front of her braked because the car in front of that was turning right. I'd guess she was following too closely again.

 

[Josh]

Thanks all. I'll be filing a claim.

She has taken the defensive driving course. She says she doesn't text and drive, and I believe her.

The first time was in the winter and the guy in front of her stopped abruptly. Still she was following too closely, I imagine. This time she says she was looking at something else to the left when the car in front of her braked because the car in front of that was turning right. I'd guess she was following too closely again.

At least we know the something else wasn't her phone

 

[eagle1000]

Yeah, it was probably one of her friends. She was coming home from school. And ironically, she hit a teacher's car (different school).

 

[F150]

2 crashes at that age, my opinion, she shouldnt be driving.....better to send to to some driving schools, and yes, i can say this, i dont want to be on the road with her.....

 

[INSUREGEEK]

I am a licensed agent since 1997 and I work in a family owned body shop. I've seen every "don't want to claim it, will increase my premium" sob story ever invented.

File the claim, let them handle it. It is the much safer way (for you) to go. After all, she's your kid and it is your assets at stake in a claim. Unless she can establish a completely separate address with her own insurance policy, she is still in your household no matter what she pays for. How old is she?

Let's move on to learning how inexperienced drivers should face the HUGE consequences of having this cute little card known as a driver's license.......