Advice on collision coverage?

I accidentally reversed my car into a tree and I damaged the bumper. I took it to a collision repair shop and they said i have to replace the bumber they gave me an estimate of $1,200.00. I have collision coverage with my insurance. The deductible is $500. So does this mean that i will only be responsible for paying the first 500 dollars?
And will this mean that my car insurance rate will go up after this? If someone can give me a quick advise on this, im not exactly sure how it works.
Additional Details
im worried about my insurance rate going up . Geico states that an accident that results in a minimal payout and does not involve injuries often will not result in a premium increase. Does anyone one what is the minimal payout allowed in Texas in order to be exempt from an increase on my premiums?

mbrcatz

Yes, you'd get a check for $700. Yes, this would be an at fault accident, and would likely count against you.

Each state has a "threshhold" where small accidents might not be surchargable - but it's usually between $900 and $2,000. You'll have to ask your agent what the threshhold is, for your state.

Fred C

It is an at-fault accident. Yes, your insurance will go up, unless you have many years of accident free driving, and have earned first-accident forgiveness. Ask if you can get a discount for cash. If you can get it repaired for $1,000, it really only costs you $500 (because you were paying $500 anyway), do it, because a second at-fault accident in the next 3 years could cost you your whole policy at renewal. Ask a broker about it, but DO NOT ASK YOUR OWN BROKER, it will get marked as an accident even if you make no claim!

aky

Hmm. Tough call. Depending on your age and driving record, it may not hurt you too much, but...

Why not try getting a few other estimates. You may find you can get it repaired cheaper somewhere else and that may be your best bet to just pay the whole thing yourself.

If you want to get a more accurate answer, call a local insurance agent but don't give them your personal details (like name and policy #). Give them the scenario and ask them to tell you what the "usual" results would be in your area.

Another thought - you didn't mention what kind of car you have, but if it isn't brand new, why not consider checking with the local wreckers/junk yard and seeing if they have a replacement bumper available. You can save heaps that way.

pkgfinder

Get a 2nd estimate and pay for all the damage yourself. Rule of thumb is do not turn it into your carrier if the repair is less than $1500. Your rate increase will far out way the money you spend repairing the vehicle.

To answer your question you would only be responsible for your deductible and your insurance company would pick up the rest. You could be risking the cancellation of your policy though.

Recommend you not turn it in.

MSAD

The collision coverage will cover the damage to your vehicle. That means you take the cost of the repairs - 500 and that is how much the ins co will pay. You pay the 500 to the shop.

This will be considered an "at fault" accident. That means your rates could go up. You will need to speak to your agent to get better information on how the loss will affect your rates specifically.

Yes, you would pay the first $500. You would not be cancelled on your renewal (unless you have had alot of other accidents and/or violations), but your rate would go up. And, depending on what state you live in, you would be charged the extra rate for 3-5 years. So, you have to decide for yourself if the extra $700 is worth it to you. If you are a young driver, you could be looking at $200 more a year, times 3 years is $600, times 5 years is $1000. The insurance company doesnt care about the amount of the claim -- this would just be considered an at-fault accident and charged the same as if your car was totalled. Personally, I wouldnt bother.

matt k

Your rate will go up and when it is time to renew your policy they could cancel you

UCANTCME

YOU PAY $500.00 AND THEY PAY ANYTHING AFTER THAT UP TO YOUR LIMITS.

YES YOUR RATES WILL GO UP.

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