Need advice from auto ins experts. Is it ever a good idea to pay "Out of Pocket" rather than file a claim?

bundysmom

Allstate's not gonna drop you. They will however code you at fault for the accident whether they pay anything out on the claim or not. Depending on your state will also determine if your rates rise. In CA if you're at faut but the property damage is less than $750 you generally don't see a rise in your rate.

However to answer your 1st question...it's NEVER a good idea to pay out of pocket for someone else's repairs if you have insurance.

D.L.

I WOULD NOT RECOMMEND GOING OUT OF POCKET!!! File a claim with Allstate. Due to the simple fact that there was no police report filed, and that the other person can always come back to claim injuries. He was mad when the accident happened. So who's to say, he won't claim injuries. Also if your in an accident, and at fault as long as the damages to your car, and other persons are less than a grand. Your rates should stay the same. If there more then a grand then your rates may go up. If your in an accident, and not at fault the damages can generally be any amt, and your rates will not go up. But if you have a certain number of claims on your record there is always a possibility that they could go up. Allstate is pretty go about not raising rates for minor fender benders. The under writing dept at your insurance company is the only perons, or persons that can determine if your rates will go up, not your agent, or adj. They may be able to tell you what they think. But rates are determined by the underwriting dept..

Nate W

They shouldn't drop you b/c of 2 accidents. But your rate will certainly go up. If you have already told your company you had an accident, they probably have already made record of it. Unfortunately, $0 claims can still effect your record. I would go ahead and let your insurance company handle it. Especially, if you think the other driver may give you a hard time and dispute the amount of damage.

Sue

Honestly, I wouldn't ever pay out of pocket unless it was a one car accident (you) and you did damage to your own car & NOTHING else. IF you decide to pay out of pocket you will have to pay everything, the damage to the car, the towing bill, the rental bill, everything. You will also have to pay any and all bodily injury claims that result from this accident. Your insurance will not pay because once you pay the other party, you assume 100% responsibility for the accident & since your company can no longer defend you due to this, they are completely out of the picture. Now, the statute of limitations on a lawsuit is 2-3 yrs in most states, however, the statute on a minor child is to the age of majority (if longer than the 2-3 yrs). So, if this child was 5 yrs old, they have 13 yrs to sue you for their injuries caused by this accident. Also, if they do decide to sue, you will have to hire and pay for your own attorney plus pay any award given to the other people. Even if it is only a small award, you could be paying it off for a long time & put all of your assets on the line.
I don't think it would matter to me if my premium went up or if I was nonrenewed because it could end up costing SO much more. If Allstate nonrenews, you can always go to Progressive. It is not like you would become uninsurable. That is just my opinion. Good luck to you.

la428282

Dont do it!!! As an adjuster I CRINGE when i hear people are trying to handle it out of pocket!

The other party.. no matter how reasonable they seem at teh scene (and in your case.. they dont even seem reasonable) can be a whole other person once they realize they can take advantage of you...

Some scenarios that could happen:
1) they take your money.. claim you never gave them anything.. and then go to your insurance and get money again
2) claim injury... get a lawyer.. and come after you and your insurance after you paid them...
3) get a super high estimate and expect you to pay it and rip you off
4) Also- are you prepared to pay their rental? b/c you would owe them....

its just a mess! i cant stress it enough... let the professionals handle it.

fighting saints

If there is even the slightest chance that anybody in the other car will claim an injury let Allstate handle it. I think they have still have their M.I.S.T. (Minor Injury Soft Tissue) investigative program and it is very good in dealing with claimed injuries from low impact injuries.

It's been a long time since I worked for Allstate but the fact that you reported the accident MAY be held against you even if there are no injuries and you pay for the car damages yourself.

If you decide to pay the other person out-of-pocket then you need to know that you will not only owe for the car damages (which will be much higher than you expect) but in most states you would also owe them for a rental car while their car is in the shop.

If you are going to pay this yourself make sure to do it with a cashiers check or something that leaves a paper trail. I would also suggest that you have the other person sign a general release form in exchange for your payment, I think you can find examples of this form on the net.

Be careful and Good Luck.

Debbie

Depends on whose at fault and the amt of damage. However, when you encounter someone as rude as you did and who had his family in the car, dont be surprised if he tries to say there are medical expenses. Call your insurance company and let them sort things out. If he presents medical bills, the ins company will verify them. And i doubt at 10-15 MPH that any whiplash or otherwise occurred. In most states, each drivers ins pays for their own damage to the vehicle, but as far as possible medical expenses being incurred (or at least claiming to be incurred), your ins company has attorneys and physicians who specialize in this. Let them deal with it. Youre not any less protected having not called the cops, cuz most times unless an ambulance is called, they dont bother showing up anyway. Your premiums wont go up all that much, even after 2 priors. Call them and let them deal with everything! Listen to LA28482 (?). Good advice!

Chris

Out of pocket settlements are never a good idea. They rarely work out. If you do settle out of pocket you should have the other person execute a full and final release of all claims so that he cannot come back and make any additional claims or sue you. However- you have to really think about this- will the amount you pay for his damages exceed the amount your policy would go up? Chances are it would not. No one can say for sure if Allstate will drop you or not. That would seem unlikely. More than likely you would be surcharged for a few years, but again the total of the surcharge may be less than what you might have to opay out of pocket for the damages.

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