Auto Ins. Claim: How do you decide whether to file a claim or pay out of pocket?

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1210sda
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Auto Ins. Claim: How do you decide whether to file a claim or pay out of pocket?

Post by 1210sda » Thu Jul 12, 2018 11:47 am

What are the factors you consider in deciding whether to file a claim for some bodywork or to pay it out of pocket.

How can one determine if next year's premium will increase by more than what the insurance company pays for the claim?

When does the premium increase drop ?

Does it make a difference whether the claim will be paid under collision, comprehensive, un/under insured, etc.

Thank you

1210

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dm200
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Re: Auto Ins. Claim: How do you decide whether to file a claim or pay out of pocket?

Post by dm200 » Thu Jul 12, 2018 12:07 pm

1210sda wrote:
Thu Jul 12, 2018 11:47 am
What are the factors you consider in deciding whether to file a claim for some bodywork or to pay it out of pocket.
How can one determine if next year's premium will increase by more than what the insurance company pays for the claim?
When does the premium increase drop ?
Does it make a difference whether the claim will be paid under collision, comprehensive, un/under insured, etc.
Thank you
1210
Is it a few hundred vs a few thousand dollars?

Are there (or might there be) future risks by not notifying the insurance company and let them handle it.

Hypersion
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Re: Auto Ins. Claim: How do you decide whether to file a claim or pay out of pocket?

Post by Hypersion » Thu Jul 12, 2018 4:55 pm

I would always get the insurance company involved if there is a third party involved.
Last edited by Hypersion on Thu Jul 12, 2018 6:32 pm, edited 1 time in total.

SC1959
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Re: Auto Ins. Claim: How do you decide whether to file a claim or pay out of pocket?

Post by SC1959 » Thu Jul 12, 2018 5:13 pm

The problem with filing a police report and/or an insurance claim is that Carfax gets their information predominantly from those 2 sources. If you insist on a police report for a $500 claim that wouldn't even hit your deductible you also need to understand that you've also reduced the trade-in or resale value of your vehicle by literally 1000s of dollars. Carfax doesn't provide the details of your fender bender so people shy away from these vehicles unless they are priced accordingly. Still your call but understand all the consequences.

Balefire
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Re: Auto Ins. Claim: How do you decide whether to file a claim or pay out of pocket?

Post by Balefire » Thu Jul 12, 2018 5:25 pm

Comprehensive less of an issue than collisions

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dm200
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Re: Auto Ins. Claim: How do you decide whether to file a claim or pay out of pocket?

Post by dm200 » Thu Jul 12, 2018 5:47 pm

Hypersion wrote:
Thu Jul 12, 2018 4:55 pm
I would always get the insurance company involved in this there is a third party involved.
Yes - I feel the same way.

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FIREchief
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Re: Auto Ins. Claim: How do you decide whether to file a claim or pay out of pocket?

Post by FIREchief » Thu Jul 12, 2018 7:13 pm

Hypersion wrote:
Thu Jul 12, 2018 4:55 pm
I would always get the insurance company involved if there is a third party involved.
Are you including the situation where you come back to your parked car and discover that somebody backed into the fender and left a small dent? If this happened to me, and the repair cost was less than $1000, there is no way I would involve my insurance company, police, etc. I would just pay it (realizing full well that my high deductibles have already "paid" for this many times over the years of no repairs).
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.

Hypersion
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Re: Auto Ins. Claim: How do you decide whether to file a claim or pay out of pocket?

Post by Hypersion » Thu Jul 12, 2018 7:22 pm

FIREchief wrote:
Thu Jul 12, 2018 7:13 pm
Hypersion wrote:
Thu Jul 12, 2018 4:55 pm
I would always get the insurance company involved if there is a third party involved.
Are you including the situation where you come back to your parked car and discover that somebody backed into the fender and left a small dent? If this happened to me, and the repair cost was less than $1000, there is no way I would involve my insurance company, police, etc. I would just pay it (realizing full well that my high deductibles have already "paid" for this many times over the years of no repairs).
I have insurance for that.

TravelforFun
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Re: Auto Ins. Claim: How do you decide whether to file a claim or pay out of pocket?

Post by TravelforFun » Thu Jul 12, 2018 7:29 pm

FIREchief wrote:
Thu Jul 12, 2018 7:13 pm
Hypersion wrote:
Thu Jul 12, 2018 4:55 pm
I would always get the insurance company involved if there is a third party involved.
Are you including the situation where you come back to your parked car and discover that somebody backed into the fender and left a small dent? If this happened to me, and the repair cost was less than $1000, there is no way I would involve my insurance company, police, etc. I would just pay it (realizing full well that my high deductibles have already "paid" for this many times over the years of no repairs).
If someone backed into your car and left a note, they would be responsible for the repairs.

TravelforFun

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FIREchief
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Re: Auto Ins. Claim: How do you decide whether to file a claim or pay out of pocket?

Post by FIREchief » Thu Jul 12, 2018 7:46 pm

Hypersion wrote:
Thu Jul 12, 2018 7:22 pm
FIREchief wrote:
Thu Jul 12, 2018 7:13 pm
Hypersion wrote:
Thu Jul 12, 2018 4:55 pm
I would always get the insurance company involved if there is a third party involved.
Are you including the situation where you come back to your parked car and discover that somebody backed into the fender and left a small dent? If this happened to me, and the repair cost was less than $1000, there is no way I would involve my insurance company, police, etc. I would just pay it (realizing full well that my high deductibles have already "paid" for this many times over the years of no repairs).
I have insurance for that.
So I'm guessing your answer to my question is "yes?"

Hopefully you understand from my post that I use high deductibles and therefore would derive no immediate financial benefit by involving my insurance company. Even if a person had $500 deductible, it is highly likely that they would see higher premiums at next renewal (and into the future). This is standard practice accross the industry. You make claims, the insurance company takes it out of your hyde (eventually). Of course, some agents have become very skilled at explaining that although your rates did go up, it is due to a complex set of factors, blah, blah, blah.....
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.

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FIREchief
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Re: Auto Ins. Claim: How do you decide whether to file a claim or pay out of pocket?

Post by FIREchief » Thu Jul 12, 2018 7:48 pm

TravelforFun wrote:
Thu Jul 12, 2018 7:29 pm
FIREchief wrote:
Thu Jul 12, 2018 7:13 pm
Hypersion wrote:
Thu Jul 12, 2018 4:55 pm
I would always get the insurance company involved if there is a third party involved.
Are you including the situation where you come back to your parked car and discover that somebody backed into the fender and left a small dent? If this happened to me, and the repair cost was less than $1000, there is no way I would involve my insurance company, police, etc. I would just pay it (realizing full well that my high deductibles have already "paid" for this many times over the years of no repairs).
If someone backed into your car and left a note, they would be responsible for the repairs.

TravelforFun
Yes, exactly. So I would involve the other person's insurance company, not mine.
Last edited by FIREchief on Thu Jul 12, 2018 7:52 pm, edited 1 time in total.
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.

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gasdoc
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Re: Auto Ins. Claim: How do you decide whether to file a claim or pay out of pocket?

Post by gasdoc » Thu Jul 12, 2018 7:50 pm

For the reasons the OP listed for not involving the insurance company, I don't carry collision insurance at all. I reasoned that since I often don't want to report an accident, I might as well not carry the insurance that I would be reporting. I also don't pay more for a car than I can afford to lose.

gasdoc

Hypersion
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Re: Auto Ins. Claim: How do you decide whether to file a claim or pay out of pocket?

Post by Hypersion » Thu Jul 12, 2018 7:59 pm

FIREchief wrote:
Thu Jul 12, 2018 7:46 pm
Hypersion wrote:
Thu Jul 12, 2018 7:22 pm
FIREchief wrote:
Thu Jul 12, 2018 7:13 pm
Hypersion wrote:
Thu Jul 12, 2018 4:55 pm
I would always get the insurance company involved if there is a third party involved.
Are you including the situation where you come back to your parked car and discover that somebody backed into the fender and left a small dent? If this happened to me, and the repair cost was less than $1000, there is no way I would involve my insurance company, police, etc. I would just pay it (realizing full well that my high deductibles have already "paid" for this many times over the years of no repairs).
I have insurance for that.
So I'm guessing your answer to my question is "yes?"

Hopefully you understand from my post that I use high deductibles and therefore would derive no immediate financial benefit by involving my insurance company. Even if a person had $500 deductible, it is highly likely that they would see higher premiums at next renewal (and into the future). This is standard practice accross the industry. You make claims, the insurance company takes it out of your hyde (eventually). Of course, some agents have become very skilled at explaining that although your rates did go up, it is due to a complex set of factors, blah, blah, blah.....
I only have deductibles on comp/collision and my insurance couldn't go up since the accident wasn't my fault.

RickBoglehead
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Re: Auto Ins. Claim: How do you decide whether to file a claim or pay out of pocket?

Post by RickBoglehead » Thu Jul 12, 2018 8:32 pm

My insurance company, AMICA, will have an adjuster look at it for no charge, no impact unless they pay a claim.

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FIREchief
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Re: Auto Ins. Claim: How do you decide whether to file a claim or pay out of pocket?

Post by FIREchief » Thu Jul 12, 2018 8:32 pm

Hypersion wrote:
Thu Jul 12, 2018 7:59 pm
FIREchief wrote:
Thu Jul 12, 2018 7:46 pm
Hypersion wrote:
Thu Jul 12, 2018 7:22 pm
FIREchief wrote:
Thu Jul 12, 2018 7:13 pm
Hypersion wrote:
Thu Jul 12, 2018 4:55 pm
I would always get the insurance company involved if there is a third party involved.
Are you including the situation where you come back to your parked car and discover that somebody backed into the fender and left a small dent? If this happened to me, and the repair cost was less than $1000, there is no way I would involve my insurance company, police, etc. I would just pay it (realizing full well that my high deductibles have already "paid" for this many times over the years of no repairs).
I have insurance for that.
So I'm guessing your answer to my question is "yes?"

Hopefully you understand from my post that I use high deductibles and therefore would derive no immediate financial benefit by involving my insurance company. Even if a person had $500 deductible, it is highly likely that they would see higher premiums at next renewal (and into the future). This is standard practice accross the industry. You make claims, the insurance company takes it out of your hyde (eventually). Of course, some agents have become very skilled at explaining that although your rates did go up, it is due to a complex set of factors, blah, blah, blah.....
I only have deductibles on comp/collision and my insurance couldn't go up since the accident wasn't my fault.
Are you suggesting that, per my example, if somebody backs into your car and doesn't leave a note (i.e. it wasn't your fault); that if you turn in a claim to your own insurance for a repair your rates couldn't increase? :confused
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.

runner3081
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Re: Auto Ins. Claim: How do you decide whether to file a claim or pay out of pocket?

Post by runner3081 » Thu Jul 12, 2018 9:16 pm

FIREchief wrote:
Thu Jul 12, 2018 7:13 pm
Hypersion wrote:
Thu Jul 12, 2018 4:55 pm
I would always get the insurance company involved if there is a third party involved.
Are you including the situation where you come back to your parked car and discover that somebody backed into the fender and left a small dent? If this happened to me, and the repair cost was less than $1000, there is no way I would involve my insurance company, police, etc. I would just pay it (realizing full well that my high deductibles have already "paid" for this many times over the years of no repairs).
I just wouldn't get anyone involved, haha.

Proudly drive a beater and even had someone back into me at an intersection. The paint fell off the corner of the bumper, but I told her to be careful and pass it along.

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FIREchief
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Re: Auto Ins. Claim: How do you decide whether to file a claim or pay out of pocket?

Post by FIREchief » Thu Jul 12, 2018 10:08 pm

runner3081 wrote:
Thu Jul 12, 2018 9:16 pm
FIREchief wrote:
Thu Jul 12, 2018 7:13 pm
Hypersion wrote:
Thu Jul 12, 2018 4:55 pm
I would always get the insurance company involved if there is a third party involved.
Are you including the situation where you come back to your parked car and discover that somebody backed into the fender and left a small dent? If this happened to me, and the repair cost was less than $1000, there is no way I would involve my insurance company, police, etc. I would just pay it (realizing full well that my high deductibles have already "paid" for this many times over the years of no repairs).
I just wouldn't get anyone involved, haha.

Proudly drive a beater and even had someone back into me at an intersection. The paint fell off the corner of the bumper, but I told her to be careful and pass it along.
Ah yes, a man (person) after my own heart. I once proudly drove an old Chevy Impala that I paid $350 for (the real Impala built like a tank, not this front wheel drive crap). The local service station owner backed into my passenger door while plowing snow off his station lot. He tried to apologize, but I wouldn't hear of it. I checked the window and it still rolled down just fine. I thanked him for trying to do the right thing, told him "forget about it" and just had a good laugh. Man that was a fun car to drive! :sharebeer
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.

MikeG62
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Location: New Jersey

Re: Auto Ins. Claim: How do you decide whether to file a claim or pay out of pocket?

Post by MikeG62 » Fri Jul 13, 2018 7:02 am

FIREchief wrote:
Thu Jul 12, 2018 7:46 pm
...I use high deductibles and therefore would derive no immediate financial benefit by involving my insurance company. Even if a person had $500 deductible, it is highly likely that they would see higher premiums at next renewal (and into the future). This is standard practice accross the industry. You make claims, the insurance company takes it out of your hyde (eventually). Of course, some agents have become very skilled at explaining that although your rates did go up, it is due to a complex set of factors, blah, blah, blah.....
^ This.

My deductible is $1,000. Recently DD had a minor incident with one of my cars (no other cars involved). Repair cost was $2,000 and I choose to pay out-of-pocket for the repair. While I would have saved $1,000 going through insurance, I made the determination that my insurance company would make that back and then some had I filed the claim. Plus, should I choose to change insurers over the next several years I was pretty sure that claim would result in higher quotes. Had the repair estimate been $5,000 I would have put it through insurance.
SC1959 wrote:
Thu Jul 12, 2018 5:13 pm
The problem with filing a police report and/or an insurance claim is that Carfax gets their information predominantly from those 2 sources. If you insist on a police report for a $500 claim that wouldn't even hit your deductible you also need to understand that you've also reduced the trade-in or resale value of your vehicle by literally 1000s of dollars. Carfax doesn't provide the details of your fender bender so people shy away from these vehicles unless they are priced accordingly. Still your call but understand all the consequences.
^ and This.

I was involved in an accident some 5-7 years ago - hit from behind by another drive. Damage to my car was around $3,000. Police were called and when the dust settled my insurance company paid nothing (insurer of guy who hit me paid for my repair in full). In fact, I fronted the repair cost and was reimbursed by his insurer. However, the accident showed on my Carfax and it presented all sorts of issues when I tried to sell the car (it was a very low production Mercedes AMG in otherwise showroom condition which should have garnered absolutely top dollar). Many people shy away from cars that were involved in accidents, simply because they don't really know or want to bother understanding the extent (or lack thereof) of the damage. And I took pictures and had the body shop report. Still some stopped in their tracks and soon as they saw the Carfax. Not sure this could have been avoided though as without a police report the other drivers insurer would have been reluctant to pay anything.
Real Knowledge Comes Only From Experience

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