Auto Insurance Claims: auto claim, insurance expert, claim settlement

Question
I have Erie insurance.  A few weeks ago I was backing out of my garage and hit my son's car.  It was only a little bump but the adjuster said it will cost about $3000 to fix his car and $1500 to fix my car.  He is getting his car fixed.

But I checked and I can buy a taillight and bumper cover myself and fix my car for @$200 which is less than my $500 deductible.  I called my agent about this and she said it wouldn't change anything as far as penalties and adjustments to my policy if I did it myself so have it fixed for whole price.

This doesn't sound right.  What do you think?

Answer
Hi Dan,

You have several issues here.  Let's take them one at a time.

First,the damages. If you have $3000 of damages, that says to me you either have frame damage or that you need an extensive amount of refinishing, or a combination of both.  $200!  That's purely cosmetic - at best!  Don't consider that "repaired".  

You don't mention what type of car you have, but if you ever have a hope of selling it, cosmetic rather than structural repairs will come back to haunt you.  If the car is past it's time anyway, then go ahead. My only concern would be safety. If there is frame damage, would it impact safety?  Only a body man could answer that question.  You might want to pursue that.

Second, as for what your agent said, I am going to assume that she is giving you that advice based on the notion that you are going to withdraw your claim.  In that scenario, the insurance company would not pay for the repairs as there would be no claim.  No harm no foul theory.

Keep one thing in mind.  Agents sell insurance.  They do not adjust claims and they do not underwrite rates.  Before you make a final decision, you need to speak directly to the insurance company.  Call the adjuster assigned and ask if the claim has already "damaged" your safe driving record and if withdrawing the claim will erase the damage.  Adjusters are the one's who determine fault.  Withdrawing a claim could erase the entire at-fault scenario.

However ultimately it is the underwriting department that determines rates. Ask if a claim withdrawal will also erase the incident from underwriting records. If the adjuster cannot answer, ask to speak with someone in underwriting.

Good luck.
Jane