If I started a claim with my insurance company but later decided to settle out of pocket with the other driver, will my rate still be impacted?

My son was involved in an accident and cited for failing to yield while making a left hand turn; the other driver was cited for speeding. I filed a claim with our insurance company, Geico, but have not followed up. The insurance company of the other driver has NOT been notified. Geico said that my son is considered 40% at fault and the other driver is 60% at fault. We, and the other driver who is 18, want to retract the claim and cut our losses. My son would be out about $4000.00 for his vehicle. Geico says that we can drop the claim, but will the fact that they know about the claim raise our insurance rates anyway?

Aug 10, 2017 Santa Fe, NM

Neil Richardson

Aug 10, 2017

Unfortunately once the insurance company has been notified of a crash the information will be documented on the CLUE report of the driver involved in the accident. Since there is no way to say with any certainty how the incident will impact your rate, as that decision is ultimately up to Geico, proceeding with the claim or dropping it will not change the end result concerning your rate. If you drop the claim and the crash ends up causing your rate to increase anyway then you are left with a damaged vehicle and a higher rate. If you proceed with the claim, get the vehicle fixed, and the rate does increase then you at least have a repaired vehicle. Best case scenario: your rate isn't impacted since your son was less than 50% at fault. The decision to pursue or drop the claim once the insurance company is aware of the crash, though, will not make any difference.

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