To file a claim or not to file a claim?
My wife recently had a minor accident where she was at fault, resulting in slight damage to the other driver’s rear bumper. They provided a repair estimate of $1,370. Our deductible is $500. Should we go ahead and file a claim, or would it be wiser to cover the costs ourselves to prevent our premium from increasing?
Additional details:
– Location: Maryland
– Insurance Provider: Progressive
I appreciate any insights or advice! Thank you!
Deciding whether to file a claim or pay out of pocket can be a tough decision. Here are some things to consider:
Cost of Repair vs. Deductible: The damage is quoted at $1370, and your deductible is $500, which means you would only be covered for $870 after paying the deductible if you file a claim.
Premium Increase: Filing a claim, especially when you are at fault, could lead to an increase in your insurance premium at renewal time. Consider reaching out to your insurance provider to see how past claims have affected rates and inquire about potential premium increases for a claim like this.
Financial Impact: If you can comfortably pay the $1370 out of pocket without straining your finances, and you want to avoid any potential premium increase, that might be the best route.
Future Considerations: Consider how many claims you might have already and how they could affect your insurance status in the future. If you already have existing claims, it may be wise to avoid another one.
State Laws and Insurance Policies: Review Maryland’s laws and your policy terms. In some cases, there may be benefits to filing the claim (like ensuring proper documentation).
Ultimately, if you can afford to pay the $1370 and want to maintain your current insurance premium, paying out of pocket may be the better choice. However, if you feel more secure having the repair documented and handled by insurance, filing the claim could make sense despite the potential for a premium increase.
Consult with your wife, weigh the pros and cons together, and choose what feels best for your situation!