Expert: Bennie719 - 2/8/2008

Question
I have one insurance policy for my home, auto, and umbrella. I recently submitted a claim through my homeowners for water damage to my home while a contractor was working on my roof. This should be the responsibility of the contractor, but that's another LONG story. I just bought a new vehicle a few weeks ago and added it to the policy. My wife backed out of a parking space and side swiped a bumper post damaging the passenger door. The estimate we received for the repair was $1400. Two questions here.

1. Is it worth file a claim here or will I be considered high risk and my premiums escalate? Considering a $500 deductible, the insurance co. will pay around $900. The guy at the body shop said that anything under $1000 paid should not be flagged.

2. The guy at the body shop also said that if I even call my insurance company to ask about this, they could raise my premiums even if I don't put in a claim because I admitted to an accident.

Any advice on what to do is appreciated. BTW, this is in NJ if that matters.

Answer
Hi Jim,
Most insurance companies flag a claim as 'chargeable' if the total damages exceed $500, others at $750.  I'm not aware of one that has raised their limit to $1,000.  In all cases the companies consider total damages, not amounts paid out.
Since your combination policy is the equivalent of 3 different policies, the insurance company's guidelines for number of losses allowed before causing a rate increase should be more lenient.
The only way to learn is through a direct 'off the record' talk with your Agent/Broker, not through contact with the insurance company.
I hope this has been of help.
Sincerely,
Bennie
San Francisco Bay Area