Expert: Doctor Settlement - 3/2/2007

Question
I was recently invovled in an accident where i was lost and didn't see the car come along side my passengers side and I hit her car towards the rear. I was barely moving and came to a sudden stop. I had no damage to my car and her car had some. She wanted to just take care of it our selfs so her insurance didn't go up. Since I assume it was my fault I agreed to pay. However the first estimate is 1500 dollars. which I don't have. I am not sure how things work if you can clarify what I should do and what we are both responsible for i wpuld appreciate it. If I contact my insurance company how will this affect my insurance?

Answer
Hi Stacey,

Yes, this accident is going to cost you one way or another.  For starters, I would think that $1,500 is too high to take on myself: usually around $500 is the break point.  Here is also what I would think about in your place.  

#1. Was the accident "investigated" by a police officer or did either of you file a report with the Department of Licensing?  IF YES, THEN THERE IS ONLY ONE YEAR OR SO  ADVANTAGE IN TRYING TO HIDE IT FROM YOUR INSURANCE COMPANY.  Why? Because they can and will get your driving record every so often in the rate review process.

#2. Will $1,500 be the end of the bleeding?  In other words, what if she starts to have small neck pains and within a month she has a personal injury claim to file against you?  SOLUTION: IF YOU ARE GOING TO GO AHEAD AND SETTLE BY PAYING THE CASH, THEN WRITE TO ME AGAIN at my website below and I will send to you a special form that includes BOTH property damage AND personal injury claims.  That way you at least have an argument that your money did pay for BOTH PD and BI claims.

#3. Can you borrow the money, and if so at what cost in comparison to the increase in insurance rates?

If you have to borrow the money or put it on your credit card, then you will be paying A LOT MORE total than an increase in your insurance rates.  If the repairs were in the neighborhood of $400 to $600, then I would think about paying for the repairs.  But when it gets to $1,500, then I would probably report it to my insurance company and let them take care of it.  THAT is why you have been paying insurance premiums.  

Don't become too hard on yourself  for incurring these costs: we all get in accidents and thankfully no one was hurt.

Best wishes,

Dr. Settlement, J.D. (Juris Doctor)
www.SettlementCentral.Com