Expert: Bennie719 - 2/19/2008

Question
My 19 year old daughter was recently involved in an automobile accident which was her fault.  

The inspector extimated her damage to be $1600.00.  My deductible is $500.00.  I can get the damage fixed with my local shop with bondo instead of sheet metal for $400.00.  

Does it make sense for me to decline my insurance payout with the hope my rates won't go up (that much), or would I be a fool not to take the cash?

Answer
Hi Frank,
Since your insurance company is already aware that your daughter had a fault accident and the damages are $1,600, you should go ahead and have them properly repair the car.
If your company is going to increase the rate due to one minor accident, it will be the same size increase whether you pay out of pocket or have them pay.
The determining factor is establishing fault and the fact that the damages exceeded the company's set threshold dollar wise, not whether they actually pay or allow you to pay.  Most companies set a threshold at $500-$750.  They are already aware that the damages are $1,600 and I doubt that you could convince them to lower it to $400 because using bondo is not putting the car back into it's original condition.
You could try taking a revised estimate from the body shop using bondo to the adjuster and see if he will adjust the records to show $400 damage, but I'm afraid that you have a slim chance.
I hope this has been of help.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area