Unfortunately, car accidents can happen anytime, anywhere. Obviously, this is why it is important to have the right type of protective car insurance. But sometimes filing an auto claim isn’t the best thing to do.
Here is an example.
A woman drove through an intersection during prime time. Suddenly, she saw a car approaching. She barely scratched her car. however, she made the otherwise perfect exterior less than perfect.
Naturally, she wanted compensation. The other driver wanted to discuss how she could pay out of pocket and avoid a car insurance claim. Being that it was minor damage, she agreed to this mode of compensation, assuring the at-fault driver that she would not notify her insurance company.
The other driver knew that the deductible was only about the same as the total repair costs of the car he had scratched. He also knew that by filing an auto claim, his rates would likely increase. Negotiating with the other driver to pay for damages without involving the insurance companies would ensure that his premium is not affected by the mishap.
Most would agree that this was a smart move.
In most cases like the one above, it is much better to send payment to repair the damage than to report the incident to the insurance company.
This is the inside story of what happens when the insurance company gets involved.
Insurance companies use complex calculations to determine what rate you should pay for your auto insurance.
Of the many things involved, multiple claim filings can cause your premiums to increase. In fact, even filing a claim incorrectly can get your rates increased or cancelled, not to mention if you’ve accumulated violations on your driving record!
Also of note is the fact that even a simple conversation about an accident, even if you don’t file a claim, can cause your rates to go up. Many insurance companies require their employees to report a possible loss.
So if you are involved in an episode like the one mentioned at the beginning of this article, you may want to consider following the order of things there and just pay up front without involving the insurance company.
Of course, there is always the risk that the other driver will discover more damage or even result in injury later on. Without a timely claim filing, there is a good chance that you will not be covered by the resulting lawsuits.
Bottom line: If you’re sure it’s a minor matter, it’s in your best interest to go it alone. If you have any doubts about this, experts advise you to call your insurance company!
An experienced independent agency will be able to explain the matter in more detail.
