Put $500 scrape in truck. Pay it or file claim?

[GPintheMitten]

It's only $250 difference. Pay it yourself. Save a claim for something much worse.

 

[randy41]

But the reality is, if you file a claim for every door ding and scratch your rates are gonna go through the roof.

the op never filed a claim before. and is there some proof for what you claim to be reality?
yes, i agree $250 is not much but its enough for the op to post about so it must mean something to him.

 

[Ken45101]

um...what do you have insurance for? if you're not filing claims then you'r just paying out. why do that?

Many of us look at insurance for MAJOR incidents, that's why we have it. Or, as many have said, when it gets bigger than you can afford.

We have had 3 claims in the past 7 years (deer, $5k-wife, and $2k-me). I debated turning in the $2k one last year but went ahead and did so. My current premium notice still shows a discount for "accident free".

I would not turn in a $500 or $1000 claim (we have $500 deductible).

HOWEVER, one advantage is that with the insurance the body shop generally accepts State Farm's estimate even if it is significantly lower than their original estimate. If you don't turn in a claim, make sure that your body shop gives you a good (self pay) price.

 

[hd5]

I doubt the current insurance company would raise your rate over one claim especially with your history. However if you decide to switch companies in the next 3 to 5 years you will more than likely lose the accident free discount the new company would give.
I agree with raise the deductible to the maximum you can stand out of pocket, because you clearly aren't benefitting from a low deductible if you don't file a claim...
I work for a company and have three different locations and one of my jobs is handling insurance. I do not like insurance companies either...

 

[wjmst]

Raise the deductible, drop collision coverage on vehicles worth less than your point of financial pain in case of a total loss.

This has been the conventional wisdom, raise the deductible and drop collision/comp coverage on older vehicles. I don't believe this still applies today.

I looked at raising my deductibles from $500 to $1000. It was going to save me like $20 a year. So I would eventually break even after 25 years. It doesn't make financial sense. The same thing with my house insurance, was going to raise deductible from $1000 to $2500, and it was only going to save $40 a year. A 37 year break even period? It just doesn't make sense.

I also got quotes from several other companies and it didn't make sense to switch either. Insurance is a racket without a doubt. I just hope if I ever do truly need it, that is actually works the way it should.

Dropping insurance on an older car? Well maybe, but you have paid so much for comp/col over the years, why not keep it this way if something does happen then you will at least get the value of the car.

Maybe I am wrong, but that is my opinion and what I am doing.

 

[foreman Etexas]

I have had couple claims on tractor windows and like my agent said that's why you have insurance. It hasn't effected anything,my rates or anything haven't went up. I also have everything insured with same company. Why not use it,if you pay for it every month? I have also hit a deer in truck,then a cow,not same truck but I have filed before with them,haven't been nothing but nice to deal with. I couldn't set around be worried my premium is going to go up with a 500dollar claim with my insurance company. My windows where 1500pc and my truck with cow was 8500 and cow couldn't locate it's owner. I also done hail damage on my house roof.

 

[oldpilgrim]

I recently had a small bump with another car. I had to file since another vehicle was involved...I wouldn't have otherwise. I probably wouldn't even have fixed the really small issue with my fender. The other guy lost a headlight rim on his truck. He hit me.

The ins co sent me a check for $600 for the minor damage. I am now being assessed an annual surcharge of $300 for the next 6 years.

I've been driving for over 50 years, and have had one other claim no larger than this one.

Yup, ins companies are there for us.

Rany41, that's why you don't file a claim unless you have to.

 

[dave1949]

This has been the conventional wisdom, raise the deductible and drop collision/comp coverage on older vehicles. I don't believe this still applies today.

I looked at raising my deductibles from $500 to $1000. It was going to save me like $20 a year. So I would eventually break even after 25 years. It doesn't make financial sense. The same thing with my house insurance, was going to raise deductible from $1000 to $2500, and it was only going to save $40 a year. A 37 year break even period? It just doesn't make sense.

I also got quotes from several other companies and it didn't make sense to switch either. Insurance is a racket without a doubt. I just hope if I ever do truly need it, that is actually works the way it should.

Dropping insurance on an older car? Well maybe, but you have paid so much for comp/col over the years, why not keep it this way if something does happen then you will at least get the value of the car.

Maybe I am wrong, but that is my opinion and what I am doing.

You are wrong! No, just kidding. :laughing:

Your analysis leaves out the chance that you would ever actually use the insurance. So, each additional dollar you spend is adjusted by your actual chance of usage.

The obvious reason you may never use it is that you don't need to; no accidents, etc.

The second is the one mentioned by others, using it for small claims may end up costing you more than just paying for it yourself. You have a conundrum in that situation: which small claim should you file and still remain under the rate increase radar? Since you have no guarantee another small claim is not in your future (of unknown "smallness"), then for which small claim do you use the insurance? I think it is a game you cannot win, house odds for the insurance company.

And for all I know, a person's claim history may be reflected in their credit score. It sure wouldn't surprise me. I know home insurers use credit ratings to set policy rates and they always find something they don't like it seems. Funny, how that works.

Compare auto insurance to extended service warranties for retail goods. Should you always buy the extended warranty? Or do you say no thanks--knowing that you may get burned on some item or other once in a while but your savings, by not paying for the warranties, offset your occasional loss.

If there is a 95% chance that spending that $20 on insurance is a waste, I'll use it somewhere else. But I think everyone should do what they think is best. Last year I began carrying a liability umbrella policy. I'm sure it is a waste , but the risk of losing everything is way more than I am comfortable with compared to the risk of writing off $10K on a vehicle loss. At least the vehicle risk level is quantifiable; you know your exposure.

 

[randy41]

I recently had a small bump with another car. I had to file since another vehicle was involved...I wouldn't have otherwise. I probably wouldn't even have fixed the really small issue with my fender. The other guy lost a headlight rim on his truck. He hit me.

The ins co sent me a check for $600 for the minor damage. I am now being assessed an annual surcharge of $300 for the next 6 years.

I've been driving for over 50 years, and have had one other claim no larger than this one.

Yup, ins companies are there for us.

Rany41, that's why you don't file a claim unless you have to.

there are other insurance co's. too bad yours sucks.

 

[oldpilgrim]

there are other insurance co's. too bad yours sucks.

insco's all work off the same data base. They all know what each other has to say.

Foe example, I gave a car to my granddaughter. She called GEICO (not my co.) to get an insurance quote and told them her grandfather gave her a car. They asked her for my name and then said is it is the red Toyota, with VIN ##### ? She said yes. They then printed out a complete registration form with all my car's info on it for her. I've never dealt with GEICO.