Should I file a liability claim if I caused $650 in damage to the other car?

I backed into another vehicle which caused $650 worth of damage to their vehicle, none to mine. I have liability coverage. Should I file a claim?

Jan 21, 2020 Alexandria, MN

Kristine Lee

Jan 21, 2020

We have a handy guide on how to determine whether or not to file a claim here. For that amount of damage, it's probably wise to forgo the claim and pay for the damage out-of-pocket.

If you go through insurance, you would be classified as at-fault in this incident and you can expect your premium to increase over a period of three years. In Minnesota, the average annual rate hike after an at-fault claim was over $500. Over three years, that's $1,500 in excess premium. It would make more financial sense over the longterm to fork over a one-time out-of-pocket expense of $650, provided that the other party is open to it.

If you have any questions, feel free to ask.

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