Expert: Anne - 12/15/2007

Question
My 20 year old son had a single car accident on the highway yesterday. No one was hurt and he was able to avoid hitting the car in front of him but spun out and hit a dirt hill in the median totaling the 2002 Chevy Tahoe. He has been charged with reckless driving which we plan on fighting. My question is whether I should report this to my insurance company or just take the loss and move on.

Answer
Hi Terry,

Good thing no one was not hurt. It is too bad your car is a total loss.

We believe you are thinking about not filling the claim because your son was cited for reckless driving and the effect that this could have in your insurance bill.

We usually tell people to file just becuase there might be some liability exposure to others (you know, the guy that turns out with neck pain three months after the accident).

Here however, there are only one person (your son). So the question really depends on how much will your rates go up.

It really depends. The ticket will not look good in a 20 year old male. However, if you have been a long time customer, you have not had any other claims, there are not "other" isses like alcohol. Then you might want to think about it.

You buy insurance to use it when you need it. We undertand that if the damage is minor, then you can simply pay for it out of pocket. But a total loss? Well, you get the point. The decision is up to you.

The best thing is to talk to your agent regarding your rates. He/she will be able to guide you a little more.

This question if often asked so we have written couple of articles on point at: http://www.auto-insurance-claim-advice.com/when-not-to-file-an-auto-insurance.ht...


Good Luck
CQ J.D (Juris Doctor)
www.auto-insurance-claim-advice.com