Question

Should I file a claim or pay out of pocket?

I hit a barrier in the parking lot and the repair estimate for my car is $1725. I recently got insurance after not owning a car for two years because I was living in downtown Philadelphia. My current six-month premium is $761. I have a deductible of $500.

Oct 19, 2016 Atlanta, GA

Answer
Neil Richardson

Oct 19, 2016

The decision to file a claim or pay for the damage out of pocket will ultimately be up to you, but there are a few things to consider. Our State of Auto Insurance Report (page58) shows that an At-Fault accident in Georgia is likely to cause an increase to your premium of more than $500 per year. Considering that an accident will impact your rate for at least three years from the date of the accident and the fact that you will have to pay a $500 deductible for the repairs, you would end up paying more than $2,000 extra over three years than paying for the damage on your own. That being said, it may not be feasible for you to pay for the damage yourself and you may also be able to find a better rate with a new company after the claim is filed. I would assess your current situation and do what seems right for yourself. Best of luck!

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