Expert: Charlie Barone - 9/2/2009

Question
Hello:
One week ago I was in an accident. An animal ran in front of my car, I swerved, and over corrected- landing me into a guardrail. Since my car was drivable, and I was headed away for vacation, I dropped it at a bodyshop to see what kind of damage I incurred. The damage was only cosmetic, but it totaled over $2000. My car in a 2001 Hyundai Accent in poor condition ( even worse now)I've kelley blue booked it at around $900. I've been with my insurance company for almost 5 years ( have full coverage), but not quite long enough for accident forgiveness. My question is should I file a claim in hopes that they total it, get the money for a down payment for a newer car and incur the cost of increased premiums (I am a 26 y/o female) , or should I just save for a down payment and drive around my beater car knowing I won't get anything when I trade it in. Thanks in advance for your council.

Answer
You might want to ask your insurance company what the impact of filing a claim like this is. You may have a comprehensive claim based on the animal causing the accident, which means that your rates won't be raised and your deductible is lower. Furthermore, if the actual cash value of your car is only $900, there is a chance that it is below your insurance company's threshold for raising your rates. Call your agent or your insurer to be clear.