Expert: Bennie719 - 10/23/2007

Question
we live in Georgia. My wife rear ended a car. Our deductible is $500. I think the damage is going to be about $6000 to both cars. At what point or how high has the damage to be to file a claim to the insurance and when should one pay out of the own pocket?

ty in advance

Answer
Hi Thedi,
If you reside in a Mandatory Insurance state, you are required to file a report of the accident to your insurance company within 10 days if damages exceed a set threshold (usually $750) or any injuries.  They in turn are required to file proof with the state that you were insured at the time of the accident.  If a police report was filed, the state is already on notice of the accident and awaiting the proof of insurance filing.
Your wife, as the at fault party is not only responsible for the damages to the other car, but also for all injuries.
With this much damage, someone in the other car is bound to seek medical treatment and therefore be entitled to a settlement for pain and suffering.
The statue of limitations for personal injury is 2 years in Georgia.
This is something that you definitely need to have your insurance company handle so they can pay the damage and injuries and get a release of all claims signed.
Personally, the only time I would even consider suggesting that you pay the loss 'out of pocket' would be if you hit a tree or pole and nothing but your own car was damaged.
Even then, it should only be considered if the damage to your car is less than $1,000.
I hope this is of help, please write again of I can be of assistance.
Your feedback to my answer would be appreciated.
Sincerely,
Bennie
San Francisco Bay Area 10-22-07 7:58 PM PST