QuestionQUESTION: so basically i was driving my friend's car, but it's really insured under his dad, and i hit a car from behind. No police report filed and it seemed that the other guy's car was going to be only a few hundred worth of damage but he went to nissan and they said $2500, which is with a discount already. This is a lot of money to pay but my friend doesn't want to do it through the insurance because of fear of raising rates. which is the best (cheapest) way out?
ANSWER: Hi Roman,
If you reside in a mandatory insurance state, your friends father may be forced to report the claim to his insurance company. Most mandatory insurance states require that an SR-1 form be filed with the state after an accident showing proof that the car was insured at the time of the accident.
Most insurance companies will not raise the rate when a driver who is not a resident of the household has a fault accident. Your friend's father can call his AGENT and get an 'off the record' opinion if the reporting of the accident and having his company pay the claim will increase his rate.
Ultimately, the owner of the car is responsible for the actions of the car. If you can't pay out of pocket, the damaged party has a right of recovery against the owner.
It will be far cheaper to have the insurance pay the claim. Even if the raise the rate, it will not amount to $2,500 over a 3 year period.
A lengthy delay in reporting the accident will give the insurance company the legal right to deny the claim and if you can't pay, it will come out of the fathers pocket. You should convince him to file the claim with his insurance company and agree to pay any increase in rate.
I hope this information has been of help.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area
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QUESTION: also i should mention that all the parties involved have geico and we are in the state of NY. Also the father has 2 cars total so he pays about $3000 for insurance as it is.
and thanks for your answer
ANSWER: Hi Roman,
I still feel that my first answer is the proper way to handle this accident. There is every possibility that the other party is treating for injuries and even if you give him $2,500 for damage, he will be back later wanting more for injuries.
Also, the insurance company will force him to get estimates from other shops and if they are lower, will not pay the high amount.
Having everything handled by the insurance company will make sure the claim is totally settled and proper release documents are secured.
Bennie
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QUESTION: ok, i hope i'm not annoying you! so if we go through insurance, even with rates increase and amount paid over time plus inc rates for renewal and what not, that total should still come out to less than $2500? because thats a lot to pay but i just don't want my friends' dad's rates in total long run to accumulate to more.
AnswerHi Roman,
As I stated in my response, in my OPINION, if there is a rate increase, it would not exceed $2,500 over a 3 year period. I also explained that the father could call his AGENT and get an 'off the record' opinion if this accident would cause an increase in the rate and how much.
When you ask your questions to allexperts.com, you agreed to fairly rate the answers that you received. I would appreciate your rating the three answers that I have given you.
I will be happy to answer any future questions that you may have.
Bennie
