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Question

Should I file a claim or pay out of pocket?

I hit my friend’s vehicle and the repair estimate for the damage is $1100. I just turned 31, I filed another claim about a year ago, and my deductible is $500. Does it make better financial sense to pay for the damage out of my own pocket to avoid a rate increase or should I bite the bullet and file the claim?

Agent Answer

Neil Richardson

Our new State of Insurance data release shows that an At-Fault accident in Colorado will increase rates by roughly 38% annually. Also consider the fact that accidents affect your rate for three years from the date of the occurrence. If a 38% increase to your rate over 3 years is more than $1100 then you might want to consider paying for the damage out of your own pocket. If it’s less then it would probably make more sense to file the claim. And about your deductible, if you are not going to have your vehicle repaired then your deductible shouldn’t be factored into your decision. Keep in mind that the decision is ultimately up to you and filing a claim with your insurance company affords you some legal protection that you wouldn’t have by paying for the damage yourself. Best of luck!

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