Should I use insurance for a $1,350 bumper repair on another vehicle?
I accidentally backed into someone else’s car, leading to an estimate of $1,350 for the bumper repair. My own car has a dent as well, but since it’s an older model, I’m not concerned about fixing it. My insurance company (Progressive) has stated they will cover the cost of the other car’s repair without a deductible. However, they did mention that this could potentially raise my rates at the next renewal, although they couldn’t specify how much. I’ve had one speeding ticket that will soon drop off my record, and I’ve never had any accidents. Would it be wiser to file a claim with my insurance or just pay for the repair out of pocket?
Deciding whether to go through insurance or pay out of pocket can be tricky, but here are some points to consider:
Cost of Repair vs. Premium Increase: If your insurance will pay the full $1350 with no deductible, you’ll need to weigh that against potential rate increases. Since you mentioned you have a good driving record (with only one speeding ticket that’s about to drop off), it might be worth contacting your insurance company to ask how much a claim for this incident might realistically impact your rates. They may not give a specific number, but could provide a general range or insight into how they handle claims.
Future Premiums: Even if your rates increase, consider how long that increase would remain on your policy and how much you’ll pay over time. Sometimes, especially after an accident, rates can be higher for several years.
Financial Situation: If paying out of pocket would cause financial strain, using insurance could be the better option. Conversely, if you can comfortably afford the repair, that might save you the hassle of dealing with potential future rate increases.
Insurance History: If you’ve never filed a claim before, it may be worth it to keep your record clean, especially since you’re already facing an increase from the speeding ticket soon.
Long-Term Considerations: Consider your insurance company policies as well; some companies may reward long-term customers with lower rates for clean records.
In summary, if you can afford the repair cost and want to keep your insurance clean, paying out of pocket could be the better route. However, if that amount would be a significant hit to your budget, you might opt for insurance, taking into account the possibility of premium increases and how it affects you long-term.