To File or Not to File a Claim?

[oxeimon]

So I live in central PA (state college to be precise), and I've had Geico auto insurance ever since I got my first car.

I'm 25 now, and got my first car (a 2004 Audi A4) in January 2011. I had no incidents until almost a year later in December 2011, when in the exit lane two cars in front of me stopped suddenly, causing a 3-car pileup (with me in the back). Nobody was hurt, but my car was deemed totaled.

A month later (Jan 2012), with my insurance check and some of my own savings, I bought a 2009 Audi A4, which I've driven with no incidents until this past week, when I was driving on a perfectly paved and ice-free road in a rural area that suddenly became completely iced over (ie, it was as if the people who maintained the road just drew a line and decided to ignore the road after a certain point). As a result, I lost control of the car and collided with a guardrail at about 15 miles an hour.

Unfortunately the collision occured near my front right headlight, where the bumper, the right fender, and the hood meets. After going to four bodyshops, repairs appear to cost something around $2500 - 3000, mostly depending on whether or not my right headlight needs to be replaced (it works fine, but some of the brackets holding it in place are broken, and so it might not pass inspection).

My deductible is $500, so I'd save at least $2000 by filling a claim. The question is, it being my second accident (in 2 years), how much do you guys think filing a claim will increase my rates?

I've called Geico and they refused to give me an estimate without me first filing a report, but I'm afraid that just filing the report will put the accident on my driving history, and that in itself might increase my rates (even if I decide not to file a claim).

(I'm currently paying around $115 per month)

Any thoughts/advice would be much appreciated.

thanks guys

 

[djs]

Its enough damage that normally its worth filing the claim and dealing with it afterwards.

The first one will drop off in a year anyway, so its not a big deal. Even if the second claim raises it $100 a month on the renewal, it will go back down in a year, on the renewal, so you are still better off.

Now, with 2 accidents, when the rating impact hits, you may want to shop your coverages and see if you can get a better rate. 2 accidents changes who the best carrier is for you, usually.

Dan

 

[oxeimon]

What do you mean the first one will drop off?

Are you saying that it will disappear from my insurance record in a year? (It's already been a year since my first accident).

Are there any good online resources for this sort of information? (especially stuff specific to geico)

 

[Josh]

What do you mean the first one will drop off?

Are you saying that it will disappear from my insurance record in a year? (It's already been a year since my first accident).

Are there any good online resources for this sort of information? (especially stuff specific to geico)

Not really.

The impact of the accident hurts less as time goes on, so if it was two months ago vs two years ago, that changes things.

Best advice financially is likely to just file the claim, then start shopping for a new carrier.

You can get discounts for being a homeowner or for being married too, that can be another way to save on car insurance

 

[blue_wynd]

If you want to shop rates, send me a message after filing your claim or not. It is ok to shop around either way. Post if you are interested and I will message my email address. I am a indy Pa agent.

 

[djs]

By drop off, all I mean is that the rating impact is gone, usually after 3 years.

But in most states, there is a huge difference between 1 accident and 2 accidents in ratings, which is why its important for it to 'drop off', from a rating perspective. For instance, here in CA, by law, you lose the good driver discount with the 2 accidents, so you'll get surcharged for both accidents PLUS lose what is usually a substantial discount.

This is why you may want to shop the rates ONLY after you see the rating impact. It won't be immediate, you have a contract for a specified rate for a specified time, whatever the policy period is. Until you get a renewal notice, don't worry about the rates, you won't do better elsewhere.

Dan

 

[b61mack]

Can you afford to get it repaired, if so i would just repair it on my own. Tell the body shop you are paying it and you have cash! it may bring down the cost.

 

[AgentProvocateur]

I agree it may be best for you to pay for the repairs yourself, if you can afford it. The increased rate because of the 2nd accident surcharge may be more expensive over the next 3 years than the cost to repair, though it's hard to know for certain. Rates will be even higher if Geico decides to non-renew you for having two accidents.

Even if Geico estimates the higher rates for you if you file the claim, it may not be accurate. Call around to a few companies/agent now, and find out what the cost of your coverage will be with two accidents on your record. Consider the price difference over the next several years to decide if paying for the repairs, or letting the insurance pay for it, is more likely to be less expensive.

 

[b61mack]

PA has a surcharge chart, it should be on your policy,