Expert: Charlie Barone - 7/9/2003

Question
My wife backed into another car, causing no damage to the
other car, but about $300 damage to our car.  Can you
recommend guidelines for estimating the relative cost of
paying for repairs ourselves vs. filing a claim with our auto
insurance and risking that our rates go up?  Could I ask my
insurance agent this question, or is it possible he'll use the
information to raise our rates regardless of whether or not
we file a claim?
THANKS

Answer
Tim,

This is a question I am often asked. First, your collision coverage is subject to a deductible, which should be measured against the $300 repair cost. It would not make sense to file a claim if your deductible is $250.

As for the small claim raising your rates, only your agent can tell you whether it would. However, there is no penalty for asking. They are happy to see people not take their money and often encourage persons to self-pay repairs.

Charlie