QuestionHi Bennie, I couldn't find a similar response among your many responses. Two weeks ago I backed into a 1995 Blazer at my office. There was very minimal damage and no witnesses. I went into my office asking who owned vehicle and advised what happened. I had no damage to my 2008 mercury mariner. I gave the owners husband my phone numbers and asked them to call me. I was on my way to an important appointment and did not exchange insurance info with him. He contacted his insurance company that afternoon who called me and asked for my insurance info. I stated I was prepared to pay for the damage and not file a claim. We are both with State Farm. He was fine with that and said he would fax me an estimate. I received nothing til yesterday. One estimate is under $500 , the second a little over $500. My question is should I report this to my agent "off the record" as you've mentioned and if so I understand that this will fall under our liability ins. and no deductible will be made? Is this true and do you think my insurance will go up. I have had no claims with State Farm, no speeding violations or previous accidents with them. I can't determine if Ohio ins. commisioner has a set dollar amount which if less would not cause an increase in our premiums. My husband wants me to pay the garage for his repairs rather than contact the agent. I took no pics of the damage which was minimal on a vehicle that is not in great shape however I did accept responsibility and am prepared to pay. My husband feels the owner wants a cash settlement. If I pay for claim do I pay the garage directly and how do I know that this is the end of the claim. I know this is long winded but didn't know how much info you needed. Thank you for your response
Answer**** FOLLOW UP *****
I just took a look at the answer as you will see it and noticed that the sample release was not transmitted exactly as I had written it.
I think you can see the mistakes and properly draft a release.
Bennie
Hi Christine,
If you report the accident to State Farm, they will thoroughly inspect both cars. It's entirely possible that they will see damage to your car that you didn't notice, bringing the total to over $500.
Like you, I was unable to learn the threshold limit in Ohio that would cause this to be a chargeable accident for insurance rating purposes.
The two most common threshold limits are $500 and $750.
If you decide to settle this loss by making payment to the other party, then cash or a certified check is the most common way of doing this. You do not want to pay the shop direct because they will not accept payment until after all repairs are accomplished due to the fact that they may find additional damage for which to charge.
By settling direct with the owner, your only obligation is to pay the amount of the smallest estimate.
Before doing this, you will want to see the registration or ownership papers to verify that he is the sole owner. If more than one owner is listed then the payment must be made to all owners and all owners must sign a release of all claims so they can't come back to you in the future demanding more money.
You need to prepare a release of all claims (see sample below) for all owners to sign and have a disinterested party sign as witness.
(SAMPLE)
** RELEASE OF ALL CLAIMS FOR DAMAGE AND/OR BODILY INJURY **
In exchange for payment of $493.22, I/We _____________ hereby fully and forever release Christine ______________ from all claims for damage and/bodily injury to my/our 1995 Chevrolet Blazer and the accident that occurred on December 12,2008 when the vehicle was parked and unattended at (street location-city & state).
(signature) (signature) ________________________________________________________________ owners name witness name &
owners address address
(if there is a second owner,
__________________
put that information here)
______________________________________________________________________
I hope that you find this information helpful.
Your feedback by rating my response will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area
