Maybe You Shouldn’t File An Auto Insurance Claim
Obviously if you’re involved in a car accident that results in considerable car and/or property damage or injuries, you will need to file a claim. But what if it’s a situation in which you or another driver causes only minor damage? For example, maybe an incident in the mall parking lot resulted in paint being scratched off your bumper. Will it make sense to file an insurance claim? Or are you better off taking care of the repair without involving your auto insurance company?
Is it worth the risk?
Every situation is different so there is no “one size fits all” answer to this dilemma. It would seem that since you’re paying for car insurance, you should be able to take advantage of it whenever you need to. But times are tough for insurers and they’re all too quick to raise rates and drop coverage.
As a general rule, if the cost of repairing the damage is less that your deductible, it’s probably better to avoid involving your auto insurer. Even if you’re at fault and you have to pay to have both your car’s bumper repainted and the other driver’s bumper, in the long run you’ll likely end up ahead financially. That is, of course, assuming you can afford to cover the costs without enduring a financial hardship. So double check your deductible, get repair estimates, and then decide.
When others are involved
When other cars or people are involved, the other person may be just as hesitant to report the incident to police and contact his or her insurer. In that case, talk to the others involved in the incident and together decide the best approach. Always swap information with each other including name, address, phone number, auto insurer, policy number, VIN, and car make, model and year.
Once the parties involved reach an agreement, do each other a favor and honor that agreement. And once repairs are completed, get the other party to sign a document releasing the party at fault from further responsibility.