Car Insurance question
 

My kid drove the car into the side of the garage. Couple estimates range from $1,700 to $2,600 and we are considering whether to use the insurance or pay out of pocket.

The 2 concerns about using the insurance is how this will impact our premiums and for how long.

Does anyone have any experience or suggestions?

I worked in insurance for several years. Basically the answer to your question is that there is no way to know the answer to either, but most likely the premiums will go up unless you have some accident forgiveness that would apply.

These insurance companies have complex algorithms to determine your rates. I used to get asked that all the time, and the answer was always there isn't a way to know until your policy renews. Insurance premiums are priced based on risk, so it all depends on how much of a risk they think you are. Most companies your rates wouldn't change until your policy period ended.

At the end of the day it comes down to your comfort level. You could also file the claim through your current insurance then change companies and hope to get a lower premium.

My wife is an independent broker and here's what she said: First, what is your deductible? If it's $1,000 - it's probably not making the claim (as you will still owe $1000 either way). Second, anytime you make an at-fault claim it will increase your premium in some manner. Some companies have a bigger impact than others - so it depends on who insures you. In terms of how long it will impact you - again it depends on the company. Usually 3-5 years.

If you have any other questions, you can PM me and I can have you contact her directly. She did say that since no one else is involved in the accident to not call the insurance company until you make a decision. Just mentioning the situation could end up with them applying an accident to your insurance (even if you don't make a claim).

This is true. It goes back to risk.

The deductible amount is an excellent point and should be considered.

Wow, thanks for the quick response. Much appreciated.

I can't recall offhand (sorry) but ... how old is your son?

The younger your answer, the less wise I'd think claiming this would end up being.

Daughter is the culprit, just recently got her license. HS senior.

(Son is Junior in college, no accidents other than a neighbor's mailbox when he was learning how to drive).

Oops.

Gotta LOL at myself there I think. Having a son myself, I'm pretty sure my subconscious simply assumed the culprit

Day 1 with my drivers license, I hit the garage door track as I was backing out and bent the wheel well.

She was driving in and hit the right side of the garage door. She hurt the car, tore up some stucco, and also bent the garage door track. So in addition to the car, there'll be some house costs too ... but were going to take it one at a time.

Accidents happen and am grateful it wasn't another car or anyone getting hurt.