So i got into a minor accident about two weeks ago and it was my fault. the police came and took a report. however i convinced the owner of the other car to possibly let me pay for the damages rather than going through the insurance company (we both have 21st). so turns out the cost is going to be 2800 on their car and i'm guessing maybe 5 to 600 on mine. do you think it will be cheaper to pay the ~3.5K out of my pocket or go through insurance and have my premiums increase? i know that they've already contacted the insurance company and told them that we're trying to handle it ourselves. assuming i pay it myself, if my rates don't go up this year will they still go up next year?? (i'm paying roughly 1200 on my parents plan right now)

what do you guys think??

 

How old are you? If you are 18-21, I would guess that it would probably impact your rates roughly the same you are paying out of pocket. I really wouldn't know though. I would contact your agent and see if they can't give you a "what if" scenerio.

 

I'm 24 right now. Planning to do that just wanted to see what pepole thought

 

Chances are if you already reported it (even as you are trying to settle the claim on your own), the insurance company may have already reported it to Clue (the claims reporting system). Also, don't trust "what if" scenarios. 9 times out of 10 you would get the opposite results of what your agent tells you. They are not a licensed claims adjuster.

 

Personally, I would go ahead and let the insurance company handle it. To me, if it's more than $1,000 or so, it's not worth the hassle. Besides, your insurance may go up initially, but if you stay clean, it will go back down in a while. Also, in a couple of years when you turn 26, it usually automatically goes down. Even if in the long run, you end up paying more than ~$3,500, it's worth it to let the insurance company handle it. Heck! that's what you're paying them for!!

 

Paying the claim yourself may not save you. It could depend on a lot of factors, one of them being state law. In California, if you are determined to be 51% or more at fault and there is $750 or more in property damage or and bodily injury or fatality, you will receive at least one point. You get 2 if there is a bodily injury or fatality. The real question then is how will this affect your rates. Good driver discounts in certain states and where the cut-off is for that can have a big effect as well. In California, if you have 2 or more points within 3 years you are not eligible for a good driver discount. The increase in premium here tends to be rather high. It's hard to get this info. I've been doing claims for years and I've never seen this question answered with any certainty. It's hard for an underwriter to answer this without seeing the specific policy and the results of the claim. And reporting the claim to see the end result may affect your premiums regardless if it still adds a point to your record. Even if you pay it out of pocket.

 

When do you turn 25? Your insurance most likely will not go up if this is your first claim. Usually it's after the 2nd or 3rd time they'll increase your premium or should i say double it or just cancel you. Ask someone from your company.

 

this will be my first claim, i turn 25 in december
who determines the points? is it the insurance company or the dmv? yeah at this point i think i'll just let the insurance company handle it. 3.5K is a lot to front right now
lesson to all: don't keep cute girls in the passanger seat, they're too distracting, put them in the back!!

 

If you're paying out of your pocket, your premium should not change at all...

also, some insurance has an up to $500 coverage for collision
without affecting your premium. Check that out with your insurance agent..
ofcourse you need to compare that to your deductible too, cause if your
ded is $500, no meaning...

 

Insurance companies determine "points" for claims. Also, by letting the insurance company handle it, there should be some kind of warranty on the work the body shop does. This is good for YOUR car being fixed....just in case If the paint chips suddenly, you always want an insurance company on your side, rather than fight the body shop yourself!

 

Find out what your deductible is for the repair to your car. If you have a large deductible (i.e. $1,000), there is no need to claim the damage to your car since you will pay it yourself anyway. As far as warranty on the body shop work, just go to a reputable place that will give you a written warranty on their work. Insurance company is not necessarily needed for such warranty. At the very least claim the damage to the other person's car. Why pay so much money up front?