Expert: Anne - 3/16/2009

Question
It was a late night. I drove to the wrong way of a one-way street. When I passed an intersection (can't see the light since I was on the wrong way), a car running from my right-hand side hit me. It was green light for him. Fortunately the damage to both cars is very minimal.

We didn't call the police at the time. I basically have 3 options now.
1) he talks to his insurance company which will talk to my insurance company. He prefers not to do so since he is worried about increased premium by his insurance even though it's not his fault.

2) both he and I talk to my insurance company. I've never filed any claim before though. My question is that if I admit to my insurance company that it's my fault, will they notify the police and issue a ticket? Or probably the insurance company will require a police report. Then the question is when I report to the police and say it's my fault, will they issue a ticket? My insurance company is Geico. My deductible is $500. I hear a ticket from police will be expensive.

3) we settle between ourselves without involving insurance company. I pay whatever it costs to repair his car. About $900 for his mercedez. Repair of my car will cost about $700.

If I choose option 2) and consider the police tickets plus increased premium by my insurance company, option 3 looks better.

Any suggestion? Thanks!

Answer
Hello, well it is a matter of choice (your choice). You have to bear on mind all the possibilities without really knowing the real impact on your insurance rates.

Also remember that you have a duty to report all loses. Please see:

http://www.auto-insurance-claim-advice.com/Duty-to-Report-Losses.html

Insurance companies decide fault, not you, not the police department. If you are going the wrong way and he had a green light (you had red), you most likely 100% at fault, even if you “decline to accept fault.” An investigation would have to be done, but it would probably lead to that conclusion.

Since your are negligent (at least a portion), you have to worry about this guy coming after your for more than just his car damages. He can come after your for pain and suffering, medical bills, etc. If you fail to report the claim, you might not have coverage to protect your from his claim. If you believe he will not come after your, then you might be okay there.

If you file a claim with his insurance company, they will pay for his damages and will come after your insurance. Your insurance company will pay them back (if you are found at fault). You are only making the process longer by going through them (again, assuming that you are at fault).

You do have to worry about your rates. Going the wrong way will give your insurance company the argument that you are a higher risk to insurance rates than first anticipated, thereby raising your rates.

The best thing you can do is get a quote now (before you file) so you can lock rates with other companies (and your own maybe). If the insurance company pays and raise your rates, you can show your agent the other quotes, which will probably force them to reduce your rates or lose you as a client.

A good place to get quotes is here:

http://www.auto-accident-blog.com/go/auto-insurance-quotes.php


Regarding the ticket: Chances are that the insurance company will not report to the police (unless there are special circumstances). Usually this is not normal procedure. The will probably not report it. Note, if you are in California, and the damages are over $750, you might have to notify the DMV or you will get a ticket. If you are not, disregard this last piece.

Good Luck
Anne