Title: Weighing My Options: AAA Auto Insurance Claim vs. Paying Out of Pocket for Repairs
I recently had a minor at-fault accident where I accidentally hit my car against the parking structure at my apartment, causing significant damage. I got a repair estimate of $1,850, and my insurance deductible is $1,000.
With the possibility of my premiums going up after filing a claim, I’m contemplating whether it’s worthwhile to go through AAA for the repair costs.
To my fellow AAA insured members, how much did your premiums increase after you filed a claim? I’d appreciate any insights!
When deciding whether to file a claim or pay out of pocket, there are a few factors to consider. Based on your situation, the repair cost is $1850 and your deductible is $1000. If you file a claim, you’d effectively only get $850 covered by your insurance, and as you noted, your premiums may increase as a result.
Here are a few points to consider when making your decision:
Cost-Benefit Analysis: If you pay out of pocket, you are looking at a cost of $1850. If you file a claim and pay the deductible, you’d end up paying $1000 out of pocket plus possible future premium increases.
Premium Increase: It varies widely, but many people report premium increases ranging from 10% to 30% after a claim, especially if it’s an at-fault incident. It would be good to check your specific policy or talk to a representative at AAA for more precise information.
Long-Term Considerations: Consider how long you plan to stay with AAA. If you anticipate staying for several years, the premium increase could add up. On the other hand, if you switch providers frequently, the increase might not have a significant long-term impact.
Peace of Mind: Sometimes, knowing that the repair is fully covered can provide peace of mind, especially if you might encounter additional costs during the repair process.
Ultimately, it may be worth getting a few more opinions on the potential premium increase from others with AAA or from your agent. This way, you can weigh your options more clearly. If it turns out the premium increase would be substantial, you might lean towards paying out of pocket. If it’s minimal, filing the claim might make more sense.