My Parked Car Was Hit

Recently, while I was out shopping, someone hit my parked car. The bumper has scratches and dents and is partially hanging off of the car. The fender on both sides of the wheel wells is significantly scratched and dented, too. If I filed a claim, how much would my rates go up? I’m hesitant to file a claim because I’m afraid of a resulting rate increase. My driving record is otherwise clean, and I am 33 years old.

Answer

Without knowing more about your specific situation, it’s difficult to determine how much your rates would increase, if at all. Usually, filing a claim will result in an increase in premiums that stays with you for three years. This is not the case with all insurers-some companies allow policyholders one “freebie” claim before their rates increase. To decide whether you should file a claim, contact your insurance agent and ask exactly how much your premiums would increase if you filed a claim. Multiply the new premium by three years, or however long your insurer keeps the penalty in effect, to get the total cost of the rate increase. Add your deductible to this figure. Now compare the total cost of filing a claim with an estimate of how much the damage would cost to repair out of pocket. For minor accidents, you’re usually better off paying for the damages on your own.