Car Accident Liability: Repairing vs. Not Repairing
We were involved in a rear-end collision on the highway in California due to a sudden stop by the vehicle in front of us. It appears that we are at fault for the accident. Our car sustained significant damage, whereas the other car has only minor cosmetic scratches. Although we have a dashcam, it unfortunately did not capture the speed, and despite applying the brakes hard, we were unable to stop in time.
We reached out to our insurance company to inquire about the potential impact on our premium if we opt not to repair our vehicle. The customer service representative informed us that any increase in our premium would depend on the claim we file, rather than the repair costs themselves. I’m finding this information difficult to understand. We received a rough estimate of $5,000 for repairs (with a $500 deductible), but I thought that the amount the insurance company pays would influence the increase in our premium.
Despite having ten years of driving experience in Canada, it’s not recognized in California, and I’m considered a new driver here with less than one year of experience. Our current premium is $250 for two people. Any advice would be greatly appreciated!
Photos of the damage: https://imgur.com/a/5O5kGrg
EDIT: Just to clarify, when filing the claim, I selected “I don’t know” who was at fault, while my wife opted for “Both cars were at fault.”
It sounds like you’re in a bit of a complicated situation. Here are some points to consider regarding the consequences of repairing your car versus not repairing it, as well as the potential impact on your insurance premiums:
Value and Safety: Repairing your car not only restores its value but also ensures it’s safe to drive. Even minor damage can lead to larger issues if not addressed.
Not Repairing Your Car:
Value and Integrity: If you choose not to repair your vehicle, you may encounter issues down the road if the damage worsens or if you decide to sell the car. Additionally, if the car is deemed unsafe, it could be a liability for you.
Insurance Premium Impact:
In some states, having a at-fault accident can lead to a premium increase, but the rate of increase varies from insurer to insurer. It doesn’t always correlate directly to the claim amount.
Claim Reporting:
The fact that you reported uncertainty over fault can complicate insurance matters. If the insurance companies get involved, they may decide fault based on their assessment, which could influence how your premiums are adjusted.
Future Insurance Costs:
Advice:
– Consider repairs: If the repair cost is manageable for you, it may be worth it to get your car fixed for both safety and potential resale value.
– Shop for rates: After the incident, it might be a good idea to shop around for insurance quotes to see if you can find a competitive rate, especially if your premium increases.
– Monitor your record: Keep track of how this incident affects your record and be mindful of how it influences your future premiums.
Overall, every case is a bit different, so discussing this further with your insurance agent or even consulting with a local insurance expert for tailored advice could be beneficial.