My 16-year-old was in a fender-bender a few days ago. At the time we were actually doubly covered for auto insurance, because I was in the process of switching companies. I originally planned to pay for the damages to the other lady’s car with cash, because they just looked like some minor scratches. I assumed it would be around the same amount as my $500 deductible. But we just got two estimates back, and they are both around $1350! I am debating whether I should still pay cash (which would be a pretty big hit financially for me at the moment) or submit it to one or the other insurance companies. If we submit to the old one, will it affect my premiums with the new company? Will they know about it? Will my old company have reason to not pay it/not refund the remainder of my premiums, etc? I just don’t really know what all the ramifications are with this.

  1. 447 POINTS
    Thad Bynum
    Owner/ Partner, Bynum Insurance Agency, Inc, Clayton, GA
    It appears that you purchased a policy and prior to notifying the previous carrier to cancel that your daughter had a minor accident. If that is the case you should immediately contact the old carrier and cancel back to the date of the new one. It is evident that it was your intention to change companies so the previous policy should have been canceled. By leaving both policies in force will give both companies an out to deny the claim for having duplicate coverage. You are also opening yourself up to a potential insurance fraud charge. It would be advisable to contact your companies and let them tell you what to do now.
    Answered on August 29, 2016
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