To claim or not to claim?
My wife was recently involved in a minor accident where she was at fault, resulting in slight damage to the other driver’s rear bumper. They received a repair estimate of $1,370, and since our deductible is $500, we’re weighing our options. Should we file a claim or just pay for the damages out of pocket to prevent our premium from increasing?
Additional details:
– State: Maryland
– Insurance: Progressive
I appreciate any advice you can offer! Thank you!
When deciding whether to file a claim or pay out of pocket, there are a few factors to consider:
Cost of Repair vs. Deductible: The repair cost is $1370, and your deductible is $500, which means you would be responsible for at least $500 and the insurance would cover the remaining $870. If you choose to pay out of pocket, you could save the $500 in deductible and avoid a potential increase in your premium.
Impact on Premium: Check with Progressive about how a claim might affect your rates. Some insurers have a policy of raising premiums after a at-fault accident, while others may not. If your premium is likely to increase significantly, it may outweigh the benefits of filing a claim.
Long-term vs. Short-term Costs: Consider the long-term implications. If your rates go up after a claim, you could end up paying more over time than simply covering the repair yourself.
Financial Situation: If paying for the repair out of pocket would not cause financial strain, it might be worth paying for it directly to avoid the hassle of dealing with a claim.
Future Claims: If you have other potential claims on the horizon, keeping a clean record may be beneficial.
Given these points, if you are comfortably able to pay the $1370 to repair the damage, it might be wise to do so to avoid any potential premium increases. However, if this would be a financial burden, filing the claim and accepting the potential premium increase may be necessary. Ultimately, the decision should align with your financial situation and comfort level regarding insurance rates.