Question

Should I file a claim for $1,000 of damage?

I backed into a parked SUV and the tow pin? I made pretty good dent/damage in my bumper cover. Deductible $250.00. File claim or not? The damage is about $1,000 and I don't have $750.00 cash available except thru line of credit at 6% interest.

Mar 8, 2018 Des Moises, Iowa

Answer
Ava Lynch

Mar 8, 2018

What you should consider is paying for the claim out of pocket (so, the $1,000 in estimated repairs) is greater or less than your deductible plus the rate increase you will receive. Your insurance company will see this claim as an at-fault car accident and thus will raise your rates as a result. In 2017 in Iowa, an at-fault accident raised rates an average of 53%. This will stay on your car insurance premium for 3 years. So, using your current premium as a base, consider what an additional 53% of increase would be compared to the $1,000 of out of pocket repairs. Also, bear in mind you do not have to file a claim immediately. While it's also recommended and the easiest path, the statute of limitations for a property damage claim in Iowa is 5 years. If you are able to file a claim later down the road, you still have time.

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