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Question
We currently are insured with AAA since March 2005. We were with Geico for 20 years w/no claims. Several months after starting with AAA our son's truck was a victim of hit & run in the school parking lot. Total payout by AAA was around $3600. In April 2006 he was leaving a parking lot and backed up when he realized the nose of his truck was too close to oncoming traffic. He told the claims adjuster he backed up and stopped and a small vehicle hit the back of his vehicle. The other driver claimed he backed into her and he was found at fault. The payout on that claim was $1300. Consequently, the new rate on his truck is $4100/annually. This morning he was involved in a rear end collission - AM rush hour and a whole line of cars slamming on their brakes - he looked in his rear view to change lanes and when he looked back up the truck was in front of him. His estimate is $2700. I am inclined to pay it out of pocket rather than turn another claim in. Cory turns 21 in November and we have told him he will be responsible for his insurance at that time. My concern is 1) AAA will cancel me - or can they do that if my policy does not expire until 3/2008? 2) It will be harder for Cory to get insurance at a reasonable rate when he is no longer on our policy and 3) they will raise my rates horribly just because he is on my policy. I wanted to call them and ask what would happen but I don't want to raise a red flag. In hind sight we should have paid the $1300 out of pocket rather than turn it in. However, he was living in Arkansas at the time and we did not see the vehicle.
Well, are you willing to risk the other party being able to come back to you with a injury claim a year or two down the road? Are you willing to risk AAA denying coverage because you never reported the claim as required in the policy?
Yes, both are very possible and happen every day.
I'd recommend that you review your policy before making a decision.
Good luck!
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Answers by Expert:
webfoot
Expertise
Auto damage, liability, insurance fraud. I am a full time auto insurance adjuster with experience in collision, theft, liability and fraud investigation. I am also an ASE Master Auto Tech and I-Car Collision Platinum certified. My experience includes 15 years in the auto repair industry, a B.S. in Criminal Justice, Law enforcement and auto insurance. ****** NO "PRIVATE" QUESTIONS WILL BE ANSWERED. I HAVE FOUND THAT NEARLY ALL PRIVATE QUESTIONS COME FROM PEOPLE WHO ARE CONSIDERING OR ATTEMPTING TO COMMIT FELONY INSURANCE FRAUD AND I'M NOT HERE TO HELP YOU! ****** I AM HERE TO ANSWER AUTOMOTIVE REPAIR, CLAIMS PROCESS AND SOME SIMPLE LIABILITY QUESTIONS. I CANNOT ADDRESS COMPLEX LIABILITY SCENARIOS WITHOUT HAVING ALL OF THE INFO FROM BOTH SIDES IN FRONT OF ME. QUESTIONS ABOUT PREMIUMS OR HOW INSURANCE IS RATED SHOULD BE ADDRESSED TO YOUR PERSONAL INSURANCE AGENT WHO KNOWS A WHOLE LOT MORE ABOUT YOUR HISTORY THAN I DO. I'VE NEVER SOLD INSURANCE AND DO NOT KNOW IF YOUR INDIVIDUAL INSURANCE RATES WILL GO UP IF YOU MAKE A CLAIM. THOUGH I'VE HANDLED SOME VERY MINOR SOFT TISSUE INJURY SETTLEMENTS, I PREFER NOT TO ANSWER INJURY RELATED QUESTIONS. I'M NO INJURY EXPERT AND I'LL LIKELY SAY SOMETHING TO HURT SOMEONE'S FEELINGS AS I BELIEVE THAT MANY SOFT TISSUE PAIN AND SUFFERING CLAIMS ARE OVER DRAMATIZED. UNLIKE MANY OTHERS, I AM ON THIS FORUM AS A VOLUNTEER WITH NO PRODUCTS OR SERVICES TO SELL AND PROMISE AN UPFRONT ANSWER BASED ON MY EXPERIENCE IN BOTH SIDES OF THE INDUSTRY. IF YOU PROVIDE ME WITH A HONEST VERSION OF EVENTS, I PROMISE A CANDID AND HONEST ANSWER IN RETURN. I CANNOT ADDRESS ALL CLAIM SCENERIOS DUE TO DIFFERING STATE LAWS AND REGULATIONS, BUT WILL DO MY BEST. PLEASE REMEMBER THAT AN HONEST ANSWER MAY BE ONE THAT YOU DON'T LIKE SO IF THAT IS GOING TO BE A PROBLEM, PLEASE DON'T ASK THE QUESTION. LASTLY, I DO NOT ACCEPT RATINGS AS I DON'T DO THIS FOR RATINGS AND WISH TO SPEAK FREELY.
Experience
20 years in automotive industry, Currently in insurance claims, worked actively as technician and shop owner until about 10 years ago. Current ASE Master Auto Tech and I-Car Platinum Collision Certifications, B.S. Criminal Justice and 10 year auto insurance/extended warranty background
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