Auto Insurance Claims: Accident in driveway, wifes car, premiun

Question
Hi!  I backed into my wifes car while backing out of the driveway.  I did not even make it all the way out before I scratched up her passenger door and rear passenger panel.  I have a scratch on my driver side panel and left side of my bumper, the painting is chipping on the bumper.  

My question is how much will this affect our insurance rates?  If this will affect our rates does it need to be reported to the insurance agency?  We are both approved drivers on each others cars. Would I be better off paying for the repair myself?  

Thanks,

Joe

Answer
Hi Joe,

Before filing a claim you should take both vehices to your chosen body shop to get an estimate of the cost of repairs. Since this will be claimed on your own policy, each car will be looked at as a seperate claim and your deductible will apply to each car. If you have a $500.00 deductible you will pay the first $500.00 of the cost of repairs for each car. So getting the estimates first will help you decide if you should file the claims or just pay for it out of pocket. The amount a claim will affect your premiun depends on your insurance company. Some will forgive the first accident while others will increase your premium as much as 40%. You should contact your agent that sold you the policy to ask a "hypothical question" about how much a minor claim would affect your rates.

I hope this helps
Richard Hixenbaugh