Expert: Doctor Settlement - 7/21/2006

Question
Yesterday was my birthday. My wife decided that what I really wanted was a new front bumper and other micellaneous body work for my 2000 Lexus. So she drove it into the corner of our garage. The repair estimate we have is $1600.  So I am wondering if I should just pay this out of my pocket or make a claim. I still have another 12 months of increased rates because of a previous claim where a piece of road debris did $5K worth of damage to the undercarriage of one of my other vehicles. Also, I have heard that I could possibly get "dinged" for higher rates simply by calling my insurance company and asking about this.  Is that true?  Thanks for any insight you can offer.

Answer

Dear Happy Birthday Boy---What a great gift!

I would not hesitate to ask my insurance agent about this as she is in the best position to let you know what to expect in terms of a premium increase.  

Your premiums will be increased for the maximum allowed by your state insurance commissioner http://www.settlementcentral.com/links.php

Usually that is three years.  After that they can no longer punish you for getting what you are entitled to by making all of those payments.  BTW, is there any wonder why the insurance industry is the wealthiest in America?

NO, you cannot be punished for making inquiry.  There is NO provision in your insurance commissioner's definition of "at-fault" accident to punish insureds for simply ASKING about their coverages.

If the damage is not to important parts, then try getting the body shop to give an estimate for USED and/or NON-OEM PARTS (NON-Original Manufacture's Equipment).  Why do you care if they are not critical parts?  THAT tip will cut about 40% off most estimates.  

Best Wishes,

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