I have full coverage on my car and am paying $400 a year for it. It’s nice and low and I’d like to keep it that way. My wife backed into another car. The guy is allowing us to either pay out of pocket or go through insurance. The cost is $700. I’m worried my policy cost will sky rocket if we go through insurance, what should I do? Can I get in touch with my agent and find out how much my policy will go up or once I contact them and ask them are they going to know I was in an accident and increase the cost regardless if I go through them or not?
If i contact my insurance company, will they increase my rates?
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Another consideration is your deductible - if it's more than $700, you would end up paying that much anyway, and run the risk of a rate increase. If coming up with $700 is an issue, and you have a low deductible, then having the insurance company pay may be an option.
Perhaps a good thing to do might be to contact your agent, and tell them you and your wife were talking about what would happen if one of you were to have an accident, and were not sure what would happen if so, and have them explain it to you. If it sounds good, then do it, if it sounds bad, then consider your risks of handling it out of pocket. Personally, I'd probably call them, and explain it exactly as it happened, and trust my agent to what is best for me. I hope it works out for you, good luck, and thank you for asking!
Keep this simple rule in mind: The less claims you file through insurance company the better. You are better off paying a small claim out of pocket. Let the insurance company handle your large claims. Even not at faults and comp claims will have some impact on your rates with most companies.
Ask him or her what they suggest. I would though, be careful about not notifying your insurance company. Insurance is here to protect you. And since your wife backed up into another care there could be bodily injury to the other auto owner.