My wife accidentally bumped into a parked car belonging to a coworker while parking. They’ve gathered a few estimates, and the repair costs will amount to $2200. We have full coverage, and we didn’t involve the police since they are friends.
- Should we cover the costs ourselves or file a claim through our insurance?
- If we choose to file with insurance, should we also get her car repaired, as it likely has similar damage?
- Will this incident cause a significant increase in our insurance premiums?
Here are some considerations for your situation:
Paying out of pocket vs. going through insurance: If you can comfortably afford the $2200 out of pocket and want to avoid any potential impact on your insurance rates, this might be the best option, especially since it involves a friend and could help maintain goodwill. However, if paying out of pocket would strain your finances, using your insurance might be a more practical choice.
Getting your wife’s car fixed: If your wife’s car has damage that needs to be addressed and it would cost about the same to fix, it may be reasonable to go through insurance for both. If you decide to file a claim, consider whether you should include your car’s damages as part of the same claim or file a separate one. Depending on your policy, they may cover both incidents, allowing you to streamline the repair process.
Impact on insurance rates: Typically, filing a claim for an accident can lead to a rate increase, especially if you’re at fault. However, the extent of the increase can vary based on your insurer, your driving history, and how many claims you’ve had in the past. It might be worth contacting your insurance agent for specifics about how a claim might affect your rates. Some states also have accident forgiveness policies for first-time incidents, so check if such a provision exists in your coverage.
Ultimately, weigh the pros and cons of each option and consider how each path might impact your finances in the short and long term. Good luck!