Question

If my daughter caused less than $1,000 in damage to another car, should we still file a claim or pay out of pocket?

My 20 yr old daughter hit someone and tore the owner's rear bumper cover. The cost of replacing the cover and painting is $854 at a local body shop. At her age, it seems that it's likely that the future premium penalty will be greater than the cost of repair.

May 3, 2017 Lexington, KY

Answer
Neil Richardson

May 3, 2017

I would agree with your assumption. In Kentucky, an at-fault accident impacts rates by an average of $917 per year (page 58 of the report). Since the accident will impact her rate for 3 years, that's quite a bit more than the cost of the repair. I would recommend paying for the other driver's damage out of pocket if it's possible.

Compare auto insurance rates and save up to $670 per year!

or
Location pin icon