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Auto Insurance Claims/Does insurance have to pay
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Question
My husband recently tapped a car while backing up while this car was parked behind our driveway. We gave the driver all of our information and he asked for our auto insurance number. We would like to pay for the damage directly without having our insurance company file a claim and pay out on it or have it go against our deductible. Is that a possibility, or is insurance required to be involved if his insurance company demands it? Can't we just pay for the damage directly? Would it still count against us for our insurance?
A couple of things here.
If your insurance company handles the other person's damage, there is no deductable. Deductables only apply to claims that you file to cover damage to your own vehicle.
If you are going to pay the damages out-of-pocket, you'll need to be prepared to write a check for whatever amount the man asks for. If you fail to do so, he can find out your insurance info and report it to them or he can sue you.
You also run the risk of writing the first check and then his shop finding hidden damage that you'll also be asked to pay for. It is at this point that you'll then be wanting the help of your insurance company, but by letting the situation get this far, you've also stripped the insurer of their right to properly handle the claim and depending on the specifics, they can reserve the right to deny coverage.
In your policy, it states that you agree to report all accidents as soon as possible and you also agree NOT to enter into any settlements that will obligate the insurer. By settling your own claim, you are removing the insurer's right to properly defend you and pay for what is actually owed. The insurance company only owes for the claims that they have settled themselves.
As far as how a claim counts against you on your insurance, this varies from state to state and from company to company. Your agent is the best person to ask.
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Answers by Expert:
webfoot
Expertise
Auto damage, liability, insurance fraud. I am a full time auto insurance adjuster with experience in collision, theft, liability and fraud investigation. I am also an ASE Master Auto Tech and I-Car Collision Platinum certified. My experience includes 15 years in the auto repair industry, a B.S. in Criminal Justice, Law enforcement and auto insurance. ****** NO "PRIVATE" QUESTIONS WILL BE ANSWERED. I HAVE FOUND THAT NEARLY ALL PRIVATE QUESTIONS COME FROM PEOPLE WHO ARE CONSIDERING OR ATTEMPTING TO COMMIT FELONY INSURANCE FRAUD AND I'M NOT HERE TO HELP YOU! ****** I AM HERE TO ANSWER AUTOMOTIVE REPAIR, CLAIMS PROCESS AND SOME SIMPLE LIABILITY QUESTIONS. I CANNOT ADDRESS COMPLEX LIABILITY SCENARIOS WITHOUT HAVING ALL OF THE INFO FROM BOTH SIDES IN FRONT OF ME. QUESTIONS ABOUT PREMIUMS OR HOW INSURANCE IS RATED SHOULD BE ADDRESSED TO YOUR PERSONAL INSURANCE AGENT WHO KNOWS A WHOLE LOT MORE ABOUT YOUR HISTORY THAN I DO. I'VE NEVER SOLD INSURANCE AND DO NOT KNOW IF YOUR INDIVIDUAL INSURANCE RATES WILL GO UP IF YOU MAKE A CLAIM. THOUGH I'VE HANDLED SOME VERY MINOR SOFT TISSUE INJURY SETTLEMENTS, I PREFER NOT TO ANSWER INJURY RELATED QUESTIONS. I'M NO INJURY EXPERT AND I'LL LIKELY SAY SOMETHING TO HURT SOMEONE'S FEELINGS AS I BELIEVE THAT MANY SOFT TISSUE PAIN AND SUFFERING CLAIMS ARE OVER DRAMATIZED. UNLIKE MANY OTHERS, I AM ON THIS FORUM AS A VOLUNTEER WITH NO PRODUCTS OR SERVICES TO SELL AND PROMISE AN UPFRONT ANSWER BASED ON MY EXPERIENCE IN BOTH SIDES OF THE INDUSTRY. IF YOU PROVIDE ME WITH A HONEST VERSION OF EVENTS, I PROMISE A CANDID AND HONEST ANSWER IN RETURN. I CANNOT ADDRESS ALL CLAIM SCENERIOS DUE TO DIFFERING STATE LAWS AND REGULATIONS, BUT WILL DO MY BEST. PLEASE REMEMBER THAT AN HONEST ANSWER MAY BE ONE THAT YOU DON'T LIKE SO IF THAT IS GOING TO BE A PROBLEM, PLEASE DON'T ASK THE QUESTION. LASTLY, I DO NOT ACCEPT RATINGS AS I DON'T DO THIS FOR RATINGS AND WISH TO SPEAK FREELY.
Experience
20 years in automotive industry, Currently in insurance claims, worked actively as technician and shop owner until about 10 years ago. Current ASE Master Auto Tech and I-Car Platinum Collision Certifications, B.S. Criminal Justice and 10 year auto insurance/extended warranty background
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