My wife accidentally struck a co-worker’s parked car while parking. They’ve received a couple of repair estimates, and it looks like it will cost $2,200 to fix their vehicle. We have full coverage, and since they are friends, we didn’t involve the police.
I have a few questions:
1. Should we cover the repair cost ourselves or file a claim with our insurance?
2. If we do file a claim, should we also get her car repaired, which likely has similar damage?
3. Will this incident significantly impact our insurance rates?
Here’s a response to your post:
Pay Out of Pocket vs. Insurance: If you have the funds available and maintaining a good relationship with your co-worker is a priority, paying out of pocket might be a good option. It can help avoid a claim on your insurance and potential rate increases. However, if the cost of repairs would strain your budget or if you might face other unexpected expenses, it could make sense to go through insurance.
Getting Her Car Fixed: If your wife’s car sustained similar damage and you have full coverage, it might be worth filing a claim for her car as well. However, consider whether you’d want to file these claims together or separately and how that impacts potential premium increases. If the cost to repair her vehicle is significant and you plan to claim for your co-worker’s car, it could make sense to include hers as well.
Impact on Insurance Rates: Generally, filing a claim can lead to increased premiums, especially if it is perceived as at fault. The extent of the rate increase depends on several factors, including your insurance provider’s policies and your prior claims history. It’s worth checking with your insurance agent about how a claim might affect your rates and whether there may be a way to file the claim without incurring a significant increase.
Ultimately, weighing the financial implications against your relationship with your co-worker and the potential for increased rates will help you make the best decision.