Is this a scam or what?

Question

My daughter was involved in a minor accident on New Year's Day. She told me that her and the other lady involved said they would work something out since it was a minor accident. (her rear bumper). She's calling the house asking for a $500.00 deductible to get her bumper fixed or she was going to take my daughter to small claims court. The reason I thought it was more to this, was because rather than letting my daughter get an estimate for her, she would rather go through her insurance company and possibly pay an extremely higher premium for just bumper damage. Even though my daughter was in the wrong, how can she avoid be scammed for money. We live in Michigan, were it's a no-fault insurance state.

Answer 1

Your daughter rearended someone? Do NOT agree to pay this! Just file the claim with your insurance company, and let THEM handle it. Yes, you'll likely get a surcharge.

Michigan is no fault for MEDICAL, not for everything else.

The BIGGEST problem with handling these types of claims yourself, is your daughter is CLEARLY at fault. If YOU start "handling" the claim, it jeapordizes the insurance company's right to defend you - and actually voids their provision about paying for bodily injury.

That means, if you pay the $500 out of pocket, you'd LIKELY have to pay the REST of the bumper out of pocket, THEN the medical bills and lost wages will start coming in, and you'll be STUCK paying them, as you've "bypassed" the insurance policy.

This could end up costing you thousands and thousands and thousands. So, you're better off filing the claim.

Answer 2

Always let your insurance company handle it. I learned this when I was a young driver. A teenager rear ended me and the only damage was bumper. Of course, me in my mid-20's at the time had no idea what a bumper would cost. So we agreed to exchange numbers. Well, boy's Dad gets on the phone and refuses to pay me! He will only pay the auto body shop I get my car fixed at! Like it is any of his business what I do with the money (I was going to get the bumper fixed anyway). So I did the kid favor and got Dad-from-hell in return. I was kind of PO'd just because of the right/wrong aspect of it all. I'll never do that again.

Answer 3

It sounds to me like she has gone through her insurance company if all she wants is her $500 deductible. If she has done that, her insurance company will subrogate against your daughter's policy. I hope she has reported it to them. Better she does than have her company find out from the other party's insurance. Now, if the other party's insurance collects their payout from your daughter's policy, they will also ask for the other party's deductible ($500) and once it is collected, they will return it to their insured. So, if your daughter pays the $500 to this lady, her insurance company will also be paying her the $500 in essence, she will end up with a $500 profit. If I were your daughter, I would tell the lady she reported it to her insurance & since this lady also reported it to the insurance, she will get her deductible back from the insurance company. She has nothing to take your daughter to small claims court for. With someone like this I would ABSOLUTELY report it to the insurance company. I would not trust that she will not come back later with an injury...

Answer 4

Probably not a scam.
Go to an autobody shop and ask them what it would cost to replace a bumper from the same or similar model of car.
You would be surprised how much this can cost.
My car got hit in the parking lot (came back from the store and the bumper was smashed in) and the bill was 1800 dollars.
So that 500 dollar deductible may be you getting off easy.

Answer 5

Report it to your insurance company and let them handle it. If she is going through her carrier they are going to subrogate for the damages anyhow. No fault refers to medical. You are at fault for the accident and unless you have funky state laws will owe for it. Just don't pay her directly, that will do nothing but cause problems.