Auto Insurance Question?

Question

Someone on my same insurance policy has backed into my car in my driveway. Both vehicles have full coverage. I was wondering how the insurance policy would handle this. This is the first "accident" that this person has had in 26 years of driving. Do we have to pay a deductible? Will our premium go up?

it just dented the back door a little bit, took some paint off, and took some out of the trim that runs down the door. And it dented the back bumper and took some of the paint off the bumper.

Answer 1

Pay for it out of pocket. As another person noted, you would have to pay two collision deductibles (one for each car) before your insurance would respond.

For such a minor accident, it would be a bad move to involve your insurance company and have this listed as an "at fault" accident on your driving history. The resulting premium increase (likely over a three-year period) will probably be more than the cost to repair the cars.

For example, suppose the total cost to repair the cars is $3,000 and each car has a $500 deductible on collision. You would pay $1,000 and insurance would pay $2,000. If they surcharge your policy for accidents of $1,000 or more (and many of them do), you could see a $500 rate increase for three years. Now the insurance company has recovered $1,500 of the $2,000 they spent to fix your cars, AND if you get in another accident during that three-year period your rate increase will be even higher.

Bottom line - Save the insurance for the big claims.

Answer 2

Ok- first im going to give you the simple answer: You will have to go under both cars collision coverage and pay a deductible for each.

Now, I will go into the more detailed answer. 99% of insurance policies state you cannot get a vehicle from your household fixed under the "Property Damage" portion of your policy. (Property damage is the not-at-fault parties - in this case your parked car- damaged property.)

Now- let me try to give you an example of why this is the case. Lets say a mother and a son each own a car and the mother hits the sons. IT isnt fair that the mother gets the sons car fixed "free" under property damage when she caused the damage. B/c techinically with both people being family members and both on the atfault policy they should have to pay for both damages. I may have just confused you more..

Answer 3

If both veh's are damaged you would most likely have to pay to seperate ded's.Now as far as your premiums going up that shouldn't happen. Generally if you are in an accident, and not at fault your rates wont go up. No matter if cost to repair is 1 dollar or 10 thousand dollars. If you are in an accident, and at fault your rates should only go up if the damages are over 1,000 for the other party.If there under you should be fine.So if at fault and damages are 1-999 dollars no rate increase.If at fault and 999 dollars or over your rates may go up.

Answer 4

Whoever is at fault pays deductible and rates go up. The other does not pay deductible and rates do not go up. Basically treated the same as any other claim, sometimes a little more favorable, depending on the carrier.

Answer 5

Yes. you will have to pay your deductible. As far as your premium, it depends on how much the damage is. I can tell you from personal experience, my premium did not go up after a 2000 fender bender, but it did after a 6000 accident.

Answer 6

Depends on how bad the damage is and if your area is a heavy accident area. If you insurance company is good they will not raise the premium. But with all insurance rates on the rise they are looking for any reason to hike up rates. =\

Answer 7

Each car has to claim against its own collision coverage and pay deductibles. Most policies have exclusions under liability where they won't pay property damage for damage you do to your own property or property owned by an insured.