auto insurance claim

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Topic Author
afr
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Joined: Sun Apr 27, 2014 4:01 pm

auto insurance claim

Post by afr » Wed Apr 08, 2020 8:35 am

My almost 23 yr old damaged her car when she hit a pole(so at fault) going into a parking spot. Its a leased '19 Honda Civic w/4k on it and insured through Geico. She filed a claim and received an estimate of $1475 to replace the front bumper cover, driver side front panel and some other smaller items. She carries 1000 deductible, has rental coverage but has no accident forgiveness on her policy. Would it make more sense for her to drop the claim and just pay it all out of pocket? Not sure if and how much her rates would increase. First time claim on a policy she took out 7 months ago. No hx of any other accidents.

jbmitt
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Re: auto insurance claim

Post by jbmitt » Wed Apr 08, 2020 8:39 am

If they already know about it, it’s recorded as an at fault accident. The payout won’t significantly worsen things. Add in rental coverage at 5+ days and potential supplemental damage on tear down and I’d take the payout.

runner3081
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Re: auto insurance claim

Post by runner3081 » Wed Apr 08, 2020 8:48 am

jbmitt wrote:
Wed Apr 08, 2020 8:39 am
If they already know about it, it’s recorded as an at fault accident. The payout won’t significantly worsen things. Add in rental coverage at 5+ days and potential supplemental damage on tear down and I’d take the payout.
Exactly, expect roughly another $1k charge for loss of use.

hambone
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Re: auto insurance claim

Post by hambone » Wed Apr 08, 2020 8:53 am

What state do you live in? You may be able to go to the DOI for your state and looked at Geico's filed rates to see how much of a premium increase you will see. If you can afford to pay OOP I would withdraw the claim and pay out of pocket. Your rates should not go up because the claim will be withdrawn and no payment will have been made. Since she did not get a ticket you should be good to go.

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dwickenh
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Re: auto insurance claim

Post by dwickenh » Wed Apr 08, 2020 9:00 am

I agree to go with the claim with Geico. Many Insurance companies have a payout thresh hold before the claim counts against you. Ask your agent or
company rep about this thresh hold. It is true that after tear down, the price could go up substantially. Retired claims handler and former Body Shop owner here.
The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.” | — Warren Buffett

pshonore
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Re: auto insurance claim

Post by pshonore » Wed Apr 08, 2020 9:02 am

runner3081 wrote:
Wed Apr 08, 2020 8:48 am
jbmitt wrote:
Wed Apr 08, 2020 8:39 am
If they already know about it, it’s recorded as an at fault accident. The payout won’t significantly worsen things. Add in rental coverage at 5+ days and potential supplemental damage on tear down and I’d take the payout.
Exactly, expect roughly another $1k charge for loss of use.
Loss of use on a leased car??

Broken Man 1999
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Re: auto insurance claim

Post by Broken Man 1999 » Wed Apr 08, 2020 9:06 am

How will this accident affect her when she turns in the car after her lease is up, assuming she doesn't buy it at end of lease?

If she turns it in, will she be charged for diminished value, since the car was was damaged?

I have only one data point concerning leased cars, DW went over the mileage limit and was nicked a bit when she turned in the car.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven then I shall not go. " -Mark Twain

Topic Author
afr
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Re: auto insurance claim

Post by afr » Wed Apr 08, 2020 10:23 am

According to Honda website-You may return your leased vehicle without making repairs, however you will receive a bill for the
cost of excess wear and use. Contact the Lease Maturity Center before making any repairs, as
some damages may be covered by your Excessive Wear-and-Use or Damage Waiver. Keep in
mind that the use of Honda Genuine parts is a requirement of lease agreements

Will any of the charges on my final (end-of term) bill be waived for loyalty?
Yes, as a loyal customer¹, you can take advantage of an additional $500 Excessive Wear-and-Use or Damage Waiver² on the vehicle you are turning in (up to $1,000 total waived) and a waiver on the turn-in fee for your current vehicle.

¹ A loyal customer is one who purchases or leases another new Honda or Acura automobile within 30 days prior to or after the turn-in date.
² Honda Leadership Leasing includes a $500 Excessive Wear-and-Use or Damage Waiver. Loyal customers may qualify for an additional waiver and may be eligible for a turn-in fee waiver. Total Excessive Wear-and-Use or Damage Waiver amount not to exceed $1,000.

runner3081
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Re: auto insurance claim

Post by runner3081 » Wed Apr 08, 2020 10:25 am

pshonore wrote:
Wed Apr 08, 2020 9:02 am
runner3081 wrote:
Wed Apr 08, 2020 8:48 am
jbmitt wrote:
Wed Apr 08, 2020 8:39 am
If they already know about it, it’s recorded as an at fault accident. The payout won’t significantly worsen things. Add in rental coverage at 5+ days and potential supplemental damage on tear down and I’d take the payout.
Exactly, expect roughly another $1k charge for loss of use.
Loss of use on a leased car??
Never mind, sorry, thought it was a rental. (well, it is, but a different type ;)

talzara
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Re: auto insurance claim

Post by talzara » Wed Apr 08, 2020 5:02 pm

afr wrote:
Wed Apr 08, 2020 8:35 am
She filed a claim and received an estimate of $1475 to replace the front bumper cover, driver side front panel and some other smaller items. She carries 1000 deductible, has rental coverage but has no accident forgiveness on her policy. Would it make more sense for her to drop the claim and just pay it all out of pocket?
If she's already rented a car, then it is too late to drop the claim.

Insurance premiums are determined by the number of claims, not the size of each claim. You're usually better off paying for small claims. The average comprehensive claim is $1,800, so your daughter's claim is smaller than average.

talzara
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Re: auto insurance claim

Post by talzara » Wed Apr 08, 2020 5:12 pm

jbmitt wrote:
Wed Apr 08, 2020 8:39 am
If they already know about it, it’s recorded as an at fault accident. The payout won’t significantly worsen things. Add in rental coverage at 5+ days and potential supplemental damage on tear down and I’d take the payout.
At most insurance companies, $0 claims do not count as claims.

At some insurance companies, comprehensive claims are always treated as not-at-fault claims in the rate calculation.

Depending on the state, claims below $500 or $1000 do not count as at-fault claims.

Topic Author
afr
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Joined: Sun Apr 27, 2014 4:01 pm

Re: auto insurance claim

Post by afr » Wed Apr 08, 2020 6:31 pm

And a claim with a repair estimate of $1470? With $1000 deductible?

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Flobes
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Re: auto insurance claim

Post by Flobes » Wed Apr 08, 2020 6:56 pm

afr wrote:
Wed Apr 08, 2020 8:35 am
My almost 23 yr old damaged her car when she hit a pole(so at fault) going into a parking spot. Its a leased '19 Honda Civic w/4k on it and insured through Geico. She filed a claim and received an estimate of $1475 to replace the front bumper cover, driver side front panel and some other smaller items. She carries 1000 deductible, has rental coverage but has no accident forgiveness on her policy. Would it make more sense for her to drop the claim and just pay it all out of pocket? Not sure if and how much her rates would increase. First time claim on a policy she took out 7 months ago. No hx of any other accidents.
Relevant anecdote:

Last fall, I has a self-caused accident with my Honda under GEICO insurance.

(I very barely knicked the front car corner on the garage frame while pulling in at maybe 2 miles an hour.)

I too had a $1000 deductible. I had rental coverage. I had a repair estimate of @$1500, 3 days in the shop.

I thought about it and decided to make the claim.

Unlike your story, I had accident forgiveness (which I purchased very inexpensively as an add-on when I switched to GEICO, then after one-year they made it part of my coverage at no cost).

All parts were ordered before my car went into the shop. Rental car met me there.

Turned out, as they took the car apart, more was damaged than initially noted. Once GEICO's estimators approved the changes, it took many days to get the parts.

When it was over, the repair bill was just north of $3500, and I had the rental car for 11 days. Estimate did not match reality. Total cost to me: $1000. Good claim, indeed.

At my renewal, my rate did not go up. In COVID times, I expect my next renewal rate to go down.

scifilover
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Re: auto insurance claim

Post by scifilover » Thu Apr 09, 2020 6:43 am

Does Daughter have any moving violations on her driving record? Youthful operator (under 25) with at fault and one or more moving violations is not generally a desirable risk for a preferred insurance company.

Helo80
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Re: auto insurance claim

Post by Helo80 » Thu Apr 09, 2020 6:52 am

Broken Man 1999 wrote:
Wed Apr 08, 2020 9:06 am
How will this accident affect her when she turns in the car after her lease is up, assuming she doesn't buy it at end of lease?

If she turns it in, will she be charged for diminished value, since the car was was damaged?
No, she will not be. That is one of the benefits of leasing a car.

Even if the car went through $14,000 in damages (granted, that's approaching write-off territory for your average Civic), as long as it were repaired to industry standards (and not Uncle Joe's Bait, Ammo, and occasional Body Work shop), OP's daughter would not receive a bill for it.

There are benefits to leasing, though they sometimes tend to get belittled here.

Broken Man 1999
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Re: auto insurance claim

Post by Broken Man 1999 » Thu Apr 09, 2020 8:08 am

Helo80 wrote:
Thu Apr 09, 2020 6:52 am
Broken Man 1999 wrote:
Wed Apr 08, 2020 9:06 am
How will this accident affect her when she turns in the car after her lease is up, assuming she doesn't buy it at end of lease?

If she turns it in, will she be charged for diminished value, since the car was was damaged?
No, she will not be. That is one of the benefits of leasing a car.

Even if the car went through $14,000 in damages (granted, that's approaching write-off territory for your average Civic), as long as it were repaired to industry standards (and not Uncle Joe's Bait, Ammo, and occasional Body Work shop), OP's daughter would not receive a bill for it.

There are benefits to leasing, though they sometimes tend to get belittled here.
Very interesting. I would have thought the damage, even repaired, would have resulted in a charge at turn-in of the vehicle.

One thing very present here is the small number of maybe answers. Some posters seem rigid, but I have learned over time lots of yes and no answers should have been maybe.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven then I shall not go. " -Mark Twain

pshonore
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Re: auto insurance claim

Post by pshonore » Thu Apr 09, 2020 9:24 am

Broken Man 1999 wrote:
Thu Apr 09, 2020 8:08 am
Helo80 wrote:
Thu Apr 09, 2020 6:52 am
Broken Man 1999 wrote:
Wed Apr 08, 2020 9:06 am
How will this accident affect her when she turns in the car after her lease is up, assuming she doesn't buy it at end of lease?

If she turns it in, will she be charged for diminished value, since the car was was damaged?
No, she will not be. That is one of the benefits of leasing a car.

Even if the car went through $14,000 in damages (granted, that's approaching write-off territory for your average Civic), as long as it were repaired to industry standards (and not Uncle Joe's Bait, Ammo, and occasional Body Work shop), OP's daughter would not receive a bill for it.

There are benefits to leasing, though they sometimes tend to get belittled here.
Very interesting. I would have thought the damage, even repaired, would have resulted in a charge at turn-in of the vehicle.

One thing very present here is the small number of maybe answers. Some posters seen rigid, but I have learned over time lots of yes and no answers should have been maybe.

Broken Man 1999
An insurance company can set its own policies (no pun intended) on accident forgiveness (with possible state approval), etc. Same with lease turn ins. I've turned it a couple of leases and it consisted of a local dealership guy walking around the vehicle looking for obvious damage, reading the odometer, looking for the owners manual and two sets of keys. As far as repaired damage, all they have to do is get a Carfax report. Of course that assumes all accidents get reported which we know is not the case. The local dealer either buys the car from the manufacturer (at
wholesale price) or it goes to auction.

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lthenderson
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Re: auto insurance claim

Post by lthenderson » Thu Apr 09, 2020 9:38 am

afr wrote:
Wed Apr 08, 2020 8:35 am
Would it make more sense for her to drop the claim and just pay it all out of pocket? Not sure if and how much her rates would increase. First time claim on a policy she took out 7 months ago. No hx of any other accidents.
At least in my state and with my insurance, the only reason your rates will go up is when the insurance company issues the check. As someone said above, a $0 claim in the end isn't going to affect your insurance at all.

Whenever I am deciding whether or not it would be advantageous to file a claim or pay out of pocket, I ask my insurance agent! He deals with this sort of thing daily and has always given me accurate advice. I don't understand why people avoid this step.

Helo80
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Re: auto insurance claim

Post by Helo80 » Thu Apr 09, 2020 9:42 am

pshonore wrote:
Thu Apr 09, 2020 9:24 am
As far as repaired damage, all they have to do is get a Carfax report. Of course that assumes all accidents get reported which we know is not the case.

Correct --- CarFax is probably the most recognized name brand report for that sort of stuff, but it's not perfect. It's only as good as what gets reported to wherever CarFax collects data from. Good and poor quality repairs can be done on any used vehicle and never get reported or takes a few years to get reported to CarFax.

Every once in a while, you read of people who buy used cars with a clean CarFax and then fine out 1 year or 2 into ownership there was a major accident and/or repaired frame damage.

Helo80
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Re: auto insurance claim

Post by Helo80 » Thu Apr 09, 2020 9:44 am

Broken Man 1999 wrote:
Thu Apr 09, 2020 8:08 am
Very interesting. I would have thought the damage, even repaired, would have resulted in a charge at turn-in of the vehicle.
It's supposed to be reported to the leasing company. I have never read the fine print on what happens if an accident that is repaired is not reported to the leasing company.

As long as it was repaired by a reputable repair shop to industry norms --- it's g2g and you won't be charged for it beyond your deductible at the time of the accident.

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