To make a claim or not

by Joe

Got into a fender bender. Estimate is 2500 for me, and 650 for the car I nicked. Nice people fortunately. They are waiting for me to decide if I just pay them personally, or I do this through my State Farm Insurance. Agent is good. Worked with him for 18 years on rental houses etc.

He says if I claim, my rates go up 15%, and I lose a 15% decrease otherwise scheduled for September. But if I make a second claim, rates up 45%, and might get dropped altogether.

Not sure what to do. Can?t leave it unfixed. Too ugly. $300 would have body shop heat up the bumper cover to get it partly back in shape, but apparently not a full fix at all.

People I bumped would like an answer by noon Sunday (3rd), since they are going out of town soon. I am running some numbers in a spread sheet. Any experience with State Farm? Is there a rule of thumb on this sort of thing. Clean record for 44 years.

Thanks. Interesting that you are available.

Joe(PhD, CPA)

Answer:

Well Joe,

The best answer (or at least information) will only come from your agent. I personally believe that if you have an accident, you should be able to make without being penalized. You pay insurance for this reason.

I know you are concern about your rates. This is of course the very first thing we are worry about in a small accident. However, there are other issues here. I am not sure if the other vehicle had anyone in it, but if they did, you can be accused of an injury claim.

We live in a litigious society, you have a PhD, and people will make frivolous claims just because they thing you have deep pockets. Not filling a claim with the insurance company can leave you with no coverage at all for a more "dark" lawsuit.

If you believe that they (you said they were nice people) will not make an injury claim, then you probably can pay out of pocket.

The question: to make a claim or not is better explained at:

Visit: http://www.auto-insurance-claim-advice.com/when-not-to-file-an-auto-insurance.html

Good Luck,
http://www.auto-insurance-claim-advice.com