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Should I file a claim for $3,000 with a deductible of $1,000?

I rear-ended another car while at a stop light. Their car received no damage, but I bumped into their metal ball mount, causing a hole in my car. Should I file a claim from my car insurance? My deductible is $1000. My got an estimate from a car repair shop and the total was about $3000.

Dec 16, 2018 Sacramento, CA

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Ava Lynch

Insurance Analyst

Credentials
  • 7+ years of Experience in the Insurance Industry

Ava joined The Zebra as a writer and licensed insurance agent in 2016. She now works as a senior insurance contributor, providing insights and data a…

There are a couple of things to think about. With the value of damage and your deductible, the most you would save by filing a claim is 2k. However, most companies will increase your rate after you file a claim. For California in 2018, rates increased an average of $660 per year after an accident. Most insurance companies will also raise your rates for 3 years after an accident. So, it would actually cost you $3,393 in rate increases. So, you would lose $1,933.

  • Savings:
    • Estimated cost of repairs ($3,000) - deductible ($1,000) = $2,000 in savings
  • Costs
    • Rate Increase over 3 years = $3,933 + deductible ($1,000) = $4,933
  • Altogether = -$1,933 in lost revenue.

From this, it makes more sense to not file a claim. Check out our great article about when to consider not filing a claim. Good luck and if you have any questions, don't hesitate to ask.

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