Should I use insurance for a $1,350 bumper repair on another car?
I accidentally backed into a vehicle, and the repair estimate for their bumper is $1,350. My own car has a dent, but since it’s older, I’m not concerned about fixing it. My insurance company (Progressive) has offered to cover the other car’s repairs with no deductible. However, they’ve warned that this could potentially increase my rates at the next renewal, although they can’t provide a specific figure on how much the increase might be. I’ve had a speeding ticket, but it’s about to drop off, and I’ve never been in an accident. Would it be wiser to go through insurance or just pay the repair costs out of pocket?
Deciding whether to go through insurance or pay out of pocket can depend on several factors. Here are a few things to consider:
Cost Comparison: Since you have a $1350 estimate, consider how this amount compares to your potential increase in insurance premiums. If your rates go up significantly, it might end up costing you more in the long run than just paying for the repair yourself.
Claims Record: If you have a good driving record and this is your first accident, it might be beneficial to avoid filing a claim. Insurers sometimes look at your claims history when determining premiums, and a claim could impact your rates more than the one-time cost of the repair.
Future Premium Increases: Insurance companies generally do not provide exact amounts regarding premium increases, but if you’re concerned about how much more you might pay, it could be worth getting an estimate or looking into how much similar claims have affected others in your situation.
Peace of Mind: On the other hand, going through insurance may give you peace of mind regarding any potential legal issues or complications that could arise later.
Financial Situation: Evaluate whether paying $1350 out of pocket is feasible for you at the moment. If it would create financial strain, using your insurance might be the better option.
Ultimately, if you can comfortably pay for the repair without impacting your finances too much, it may be wise to do that and avoid any potential premium increase. However, if you want to avoid any complications and ensure the other party’s car is repaired properly, using your insurance might be the way to go.