Expert: Richard Hixenbaugh - 1/6/2010

Question
Hi, I backed into a brand new luxury vehicle and left a quarter-sized "impression" in the bumper which appears to have caused a minor crack in the bumper. Crack is about 1 inch long.

I left my phone and name on the driver's windshield, as it is clearly my fault. The other driver got an estimate for repair from an auto body shop -- the shop said the repair requires replacement because of the crack. The est. is $1,800.

I had been planning to just pay for the repair, but the estimate is much more than expected. So, I'm now thinking of going through my insurance company. My deductible is $1,000.

My concern is the future surcharge that I will be assessed. My insurance agent told me there is no way to estimate the surcharge without submitting a claim. They say the high repair cost will deem this "accident" as a 5-point incident.

What is my insurance companies obligation regarding surcharge estimates?  If I am assessed $800 a year for 5 years.... then clearly I should just pay for the bumper directly, right?

thanks for your input.

Answer
Hi Stacey,

The company should be able to tell you what the surcharge would be. With most companies the surcharge for a first offense can range from 15% to 40%. The surcharge woudl remain for only 3 years.

Your $1,000 deductible applies to your collision coverage which is for damage to your car. The Property Damage Liability coverage generally does not have a deductible, so your insurance company should pay the full cost. Further, if you file the claim with your insurance company, they will likey send out a damage estimator to inspect the damage to verify that replacement of the bumper is appropriate. It is possible that it could be repaired which could substantially reduce the cost.

I hoe this helps
Richard Hixenbaugh