Question about car insurance and past accident?

Question

I got into an accident over a month ago, it was my fault. My car had about $1500 worth of damage and the other car, SUV (had no damage) just paint job/scrape. Since there was no bodily harm, and basically no damage to the SUV, we decided to take care of it offline (no cops/insurance companies involved). The person who I hit said, he will provide me with an estimate later on. A month passed, I sold my damaged car and the person now finally got back to me with an estimate of $750 for paint to the rear bumper. $750 is too much for just paint and I feel the person is ripping me off. What will happen if I take this matter to my insurance company and that I sold the damaged car already? I only have liability coverage.

Answer 1

1. Don't worry too much about your car. If you only had liability, the other insurance wont pay out on your vehicle anyway.

2. 750$ is not that far off from what if might cost. There are seperate changes to remove and reinstall the rear bumper, the charge to paint it, the charge to put clear coat on it, and the charge to take off all of the material around the bumper that sometimes needs to be removed in order to paint. A replacement bumper would normally go for over 1K (even a used one).

3. You will save cash by paying the 750 as opposed to having your insurance go up. If however, you decide to get your insurance involved, check your policy. Some insurance companies have a provision that does not provide coverage if the claim in not reported in a "timely manner" In my experience as a claim adjustor, normally the insurance company pays.

4. The only reason the insurace company would want to look at your car is to see whether the damage to your vehicle justifies the damage to the SUV. They could probably figure that out just from any estimate you got when your car was damaged. Once again, I would advise you to pay the 750 (you can try to negotiate some if you want) and save money in the long run. Since the other party will probably not fix the vehicle anyway, you may be able to negotiate a lower payment. Insurance companies do this from time to time (its called an apperance allowance) so I don't see why you couldn't try it.

Good luck!

Answer 2

Has the person provided you with a written estimate from a shop? If they have a legitimate estimate, you pretty much have to pay it. You don't get to dictate where they get the work done, how many estimates they get, etc. The best you can do is call around and see if other shops will give you a rough estimate over the phone based on your description. If they're really far different, you can tell the person you have reason to believe their estimate isn't accurate and ask that they get another. I paid about $275 for similar work to my bumper eleven years ago, but $750 honestly wouldn't surprise me today, depending where you live.

Now... you are usually legally required to file an accident and insurance report with the police if there are injuries or damage over a certain amount. I can't speak for every state, but in Oregon it's damage to any one person's property over $1500, or if one of the vehicles has to be towed from the scene as a result of damage. And you have to do it within 72 hours. From what you said about the damage to your car, it sounds like you're already in violation of the law. If you can get this taken care of without that fact having to come out, it's probably in your best interest to pay the person and get on with your life.

Answer 3

Your company will pay it. You should check with your agent, because in some states, you have to have a payout of at least XYZ dollars (can be $1,000, can be $1,500) before the accident is considered "surchargable".

HOWEVER, even if the accident isn't surchargable, it still counts as an accident, so in states which allow a company to cancel you if you have two accidents within three years, it still counts as one of those accidents.

I'd ask the guy for the name of the body shop, and tell him you want to pay the body shop directly. Then ask the body shop to confirm the estimate - or get a copy of the estimate in writing. $750 is a LOT for one panel, but not that much if you're looking at two or three panels.

Answer 4

Your company will pay for the other person's damages under your liability coverage. They will squawk a bit about the late notice, but as long as they can see this other person's car and do an estimate of damage, they will probably cover it with no questions.

Answer 5

liability coverage wouldn't cover your car, so it's not an issue....

...as for $750, it's not totally out of line; someone just hit me(hit &run), I thought the damage is minor, but the insurance company wrote a $1730 estimate

you could always say it seemed a bit high and offer $500 cash

Answer 6

your getting off easy for $750. If you turn this in to your insurance chances are they will pay the bill but sooner or later your rates will go up. Most of the time the insurance companies double their money by passing this cost on to you in a higher rate.The selling of your car doesn't make any difference.

Answer 7

It's very likely that your insurance surcharges over the next three years will add up to more than $750.00 Save yourself some money and just pay the guy. But get a release of liability from him!

Answer 8

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RE: Question about car insurance and past accident?

Answer 9

Damn, why do people do this sort of thing??? Tell your company, hopefully they will have some mercy and pay the thing. It's their call as they have the right to inspect both vehicles (it is in your policy) prior to settlement. Stupidity IS covered.