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Auto Insurance Claims/settlement out of pocket

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Expert: Bennie719 - 1/10/2008


Question
Hi Bennie,

I rearended (myfault) another car recently in NY, the cop asked us to exchanged our insurance. the damage was little. Next day he called me asked for 300$ for repairs. I sent him the check for that amount stating "Release of all claims" at the memo. Now i am worried whether i have to inform  this to my insurance company or can i keep that scanned copy of check to safegaurd myslef against further claims.

Its been a week since this incident had happened.
Even if i inform this to my insurance, does my insurance rates go up because insurance hasn't paid anything till now.

Thanks,
Santh


Answer
Hi Santh,
You should inform your insurance company of this accisent in case the other party later decides to claim injuries.  A late notice would give your company grounds to deny the claim.
If the total cost never exceeds the amount that you have paid, there shopuld be no increase in your rate.
Bennie

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Bennie719

Expertise

I have extensive knowledge in Personal Auto, Homeowners Insurance and Personal Umbrella coverage. I am also thoroughly familiar with claims handeling procedures. Will answer questions related to the above.

Experience

Experience in the area: Served as an expert at askme.com from 7/2000 thru 10/2002 in the catagories of general insurance, auto and home insurance. Answered 422 questions before that site closed. Licensed in California since 1961, first in Life and Health for 2 + years and as a Property/Casualty Agent/Broker since 1964. I sold my business and took early retirement in 1998. Still maintain a valid California Property/Casualty Agent/Broker license. I have been a volunteer at allexperts.com since 2002. I can provide assistance in the following fields: Property and Casualty Insurance, Insurance Law, Auto Insurance Claims.

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