Author Topic: File an Insurance Claim or Pay Out of Pocket  (Read 1502 times)

ThePauperOfNorthLake

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File an Insurance Claim or Pay Out of Pocket
« on: December 17, 2016, 01:56:10 AM »
Question for the MMM community:

I scratched a parked Porsche the other week with my car and just received a repair quote from the car owner.  The repair total is $1,700.  Fortunately, I have the liquidity to pay the repair out of pocket.  I no longer have collision or comprehensive coverage on my car and just have the standard $100M/$300M liability coverage (paying about $300/year currently). 

I'm planning to call my insurance company to see if my policy includes accident forgiveness.  But assuming this isn't available, my gut tells me that I should just pay the repair out of pocket and not file a claim because the insurance company will probably raise my rates over time by a present value of greater than $1,700.  Is my thinking correct on this?

arebelspy

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Re: File an Insurance Claim or Pay Out of Pocket
« Reply #1 on: December 17, 2016, 02:00:05 AM »
What's your deductible?

Yes, mathematically if (deductible + NPV future rate increases) > 1700, pay the 1700.

You think that will be the case from one claim?
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ThePauperOfNorthLake

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Re: File an Insurance Claim or Pay Out of Pocket
« Reply #2 on: December 17, 2016, 12:27:44 PM »
I don't have a deductible.

However, I'm not sure what to expect in terms of insurance increases. I've never made a claim on the policy and have had it for several years. I would guess if I called my insurance company that they wouldn't be so forthcoming about how much my annual premiums would increase. What would you do in my circumstances?

JLee

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Re: File an Insurance Claim or Pay Out of Pocket
« Reply #3 on: December 17, 2016, 12:41:41 PM »

Playing with Fire UK

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Re: File an Insurance Claim or Pay Out of Pocket
« Reply #4 on: December 17, 2016, 01:05:26 PM »
Is there any chance that the car owner could find more damage or claim someone was in the car and is injured?

Mine could reject a liability claim if I haven't told them about the incident.