Expert: Doctor Settlement - 6/26/2006

Question
I recently was at fault and damaged a parked car by colliding with the back bummer. I left a note on the car and did speak to the owner. I did not want to report it to my insurance, and decided to pay for the damages to his car. I have recently had an estimate on mine and it is more than what I anticipated and now I am wondering if I can report it to my insurance company and get reimbursed for what I paid him. I have a copy of his estimate with a signed statement that says I paid him in full. Any suggestions?

Answer

Hi Stacy,

The decision whether or not to turn your claims over to your insurance company should involve an analysis of the costs to you both ways.

I am sure you must know that once you turn in both claims, there is a good liklihood that the insurance company will raise your rates for at least three years.  

Is it worth it for you to have increased rates for three years?  Plus, sometimes people like me think that they never do delete the at-fault accident tag from your record.

To figure out how much it will cost to take those premium increases, one just has to ask your agent--or any agent--anonymoulsy how much the rates will increase for two accidents of the dollar value you will be reporting.

In answer to your question, YES, your company will pay for the repairs of the other car, unless they have a complaint about the repair order, in which case they will only pay for reasonable repairs as they see them to be.  But for such small damage, it is doubtful then would even do an analysis.  

Best Wishes,

Dr. Settlement, J.D.
htp://www.SettlementCentral.Com