jhale

Well, I never thought I would be seeking insurance advice for my wife but unfortunately I am. My wife recently decided to back out of out driveway without looking and accidentally backed into a parked car on the opposite side of the street. Of course she was driving our Volvo SUV and claims that the reverse sensor did not work. As it turns out, she hit the parked car at an angle and put a decent size dent above the front tire wheel well. She left a note and spoke to the owner today. The owner received an estimate and I am now stuck with trying to decide what to do.

The owner claims that the damage totalled $1,300 (newer Toyota Camry). I was on business and did not witness the damage so all of the information is second-hand. I am leaning towards paying out of pocket and avoiding insurance but I thought I would check on RL for some advice. Here are my thoughts:
- we have not had a claim in 8 years
- my wife has received 2 speeding tickets in the last 2 months (1 reduced to 2 points) and one photo radar (no points)
- the owner of the other car is open to another quote from another shop
- I am asking for a faxed copy of the receipt with detailed damage
- I have a $500 deductible

So, given the aforementioned information, should I pay out of pocket? If not, would the minor damage result in a policy change? Also, if we do get another estimate and it results in a higher repair fee what do I do?

Thanks for all of your help.

Jon

fb47243

So it's $500 out of pocket plus insurance claim and possible increase with insurance vs. $1300.

No Brainer

Pay the $1300

jhale

I figured it was a no brainer but after being stuck in an airplane for the last 6 hours and listening to screaming kids for 90% of the flight, my brain is not quite 100%. Thanks for the feedback.

rockwoodfarm

Pay the bill, keep it off your insurance.

samsnead

Pay the bill, have them sign a release.

DocTock993

I recently did a stupid with a rental car and found out that as long as my insurer did not pay out more than $999, my rates would not go up, and I would not loose my "good driver" discount. See if you can negotiate with the other party so that, with deductible, you have less out of pocket expense, and at least some can be paid by your insurance.
I'm with State Farm (no affiliation other than paying my bill on time ) - so I cannot discuss other insurer's policies.

matt777

I would pose a theoretical question to your insurer. Your rates should not go up for a minor accident. If they will, ask for a lower premium and a $5000 deductible and consider yourself self insured for minor stuff.

ps my insurer gives me lower deductibles for accident free years. Talk about a useless incentive. I have to have an accident to collect on it???????

RickBetterley

You mentioned a $500 deductible; isn't that only for damage to your car, not for damage you may have caused to another car (or property)?
Still might be worth it to pay out of pocket.
Stupid insurance companies that cause their customers so much angst when finally using a product they bought and paid for (often for many years without a claim).

Slow Guy

Without knowing the extent of the damage did they consider one of the dent removal outfits? I've heard reports of outstanding work from some of them. If it can be repaired that way the car wouldn't have repaint issues that would affect their resale value. I suspect a body shop wouldn't even suggest that option because it wouldn't be in their financial interest.

I have heard you need to get someone experienced, not the kid 6 mos. out of training. Just a suggestion.

Tim993

I would see if you could at least get the guy to get one more estimate. I backed into an older Honda Accord in my gym's parking lot. I left a note and the owner called me back with an estimate of $1200. She had brought it to a body shop that was owned by a long time friend of her family. I thought the quote was really high for the damage (no paint was removed and the damage was only on one panel). She brought it to a different place and got an estimate of $300 that I paid out of pocket. I really think that the first body shop saw $$$ when she told them what had happened and figured that I was going to turn the claim into my insurance.

c993k

The 2 speeding tickets combined with an accident, all within a short period of time, will have a serious affect on your rates.
Pay it out pocket, get him to sign a release and if there's any money left over
invest it in Drivers Ed Course as a Valentine's gift!

2Many Cars

Frequently if a repair shop knows the repair will be paid out of pocket they'll do it for less. Get a second estimate and then call the shop with the lower price and see if you can get a discount. It's worked for me on several occasions.

Definitely consider raising your deductable - small(ish) claims are seldom worth making.

jhale

Thanks for all of the responses. As for her previous speeding tickets, one of them was 15mph over but I guess she talked him down and she pleaded to a lesser charge for 2 points. The other speeding ticket was for 10mph over but she was caught on photo radar which does not count against your driving record. No kidding on getting a radar dector... Hmm, Valentine's Day is tomorrow.

I spoke with the owner of the car she hit and he is being very cooperative. I want to make things right and we are meeting at another body shop on Friday for a second quote. I have not seen the damage first hand so it difficult for me to verify the first quote. I did find out that the car she hit was a Toyota Camry but a 1995 not 2005! I am also going to make sure that the adjuster knows that this is not an insurance claim.

Since I am not a lawyer, what should I include in a release letter?

Thanks again- JH

race911

Something to consider, for some companies even talking to them about "hey, should I report this, how will it affect my rates" will trigger them wanting a report. Then in California we have the mandatory SR1 filing for damage over $750 (let alone injury or death).

In one case with GEICO, a racer friend a couple of months ago, THEY called the neighbor who she bumped after they agreed that she would fix the damage.

c993k

PROPERTY DAMAGE RECEIPT AND RELEASE

The undersigned, _____________, for and in consideration of the payment of the sum of __________, the receipt of which is hereby acknowledged, do/does hereby release, acquit and forever discharge __________ and (his, her or their) heirs, successors and assigns from any and all actions, causes of action, claims or demands for property damage, and associated costs, loss of use, expenses, compensation, consequential damage or any other relating thing whatsoever, on account of, or in any way growing out of, an accident which happened on or about the _____ of ______ _____ on ____________ in the City/Town/Village ______ County of ________ State ______.