Insurance claim question?

Question

Hi

When I reversed my car, hit carport pole and got tent and scratches in my car.

I checked couple of Body shops and the cost to repair would be around $2500.00

My auto insurance is with All state and $1000 as deductible.

I spoke with my agent and he told me to take care of this expenses myself to avoid losing good driver discount and all state may increase the fee by 5%

My question is, Should I pay for it or file a claim?

Appreciate your valuable sugestions !..

K

Answer 1

First... the agent is trying to protect their _commisions_! While I'm sure what they told you is correct, they get better commisions when the policies they write don't have high claims experience.

This is really not very difficult to determine... but only you can do it. You're looking at $1500 out of your pocket now to have it repaired. In your financial situation, is this better then loosing a 5% discount (for how long is important) and a possible slight increase? No one else can answer this question for you.

Also, you could consider paying for the repairs out of pocket and perhaps only having partial repairs done. Or finding a cheaper way to have it repaired.

Answer 2

If your premiums go up - how long will they be raised. I would expect at least 3 years - possibly 5.

So do the math. Would your increase equal or exceed the rate increase?

Answer 3

Well figure it out. WHAT is 5% of your CURRENT insurance premium. Compare that expense to the cost of your out of pocket expense of 1500 bucks

Answer 4

If you put in your claim, your insurance will go up for at least 40 months. I always advise my clients not to go through insurance unless it is a claim that would cause hard-ship.

Answer 5

I rear-ended a vehicle this morning So there we are alongside the line and slowly the motive force gets out of the motor vehicle. . . and you understand ways you in basic terms-get-sooo-under pressure and stuff purely seems to get humorous? Yeah, nicely, i could no longer have self belief it, the different motive force exchange right into a DWARF! He storms over to my vehicle, seems up at me and says, 'i'm no longer happy!' So, i seem down at him and say, 'nicely, which one are then you definately?' .. . . and that's whilst the combat began

Answer 6

pay it out of pocket if you can afford it. its going to be a LOT cheaper than paying a higher rate for the next 3 yrs