Question

Since my son is under 25 and damaged his car, does it make more sense for him to file a claim or pay out of pocket?

My son, who will turn 25 in four days, has never had an accident. Yesterday, he slid on ice and hit a fire hydrant. There were no other cars involved and no injuries. Unfortunately, he probably totaled his car because he was driving a 16 year old Saturn valued around $1500. Should he report it to the insurance company and suffer the consequences of having his rates increase for being an "under age 25 yr. old male" or just swallow the loss ?

Jan 17, 2017 New Milford, CT

Answer
Neil Richardson

Jan 17, 2017

It's important to consider the financial impact of filing the claim, regardless of his age. He will have to pay his deductible and our State of Insurance report shows an average increase of $830 in premium per year for an at fault accident in Connecticut. If the repair costs are less than he would pay with his deductible and increased premium then he should absolutely pay out of pocket. Ultimately the decision is up to him, but he should consider all these things before moving forward.

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