Auto Insurance Claims: 3rd claim in 3 years, collission, hind sight

Question
We currently are insured with AAA since March 2005. We were with Geico for 20 years w/no claims. Several months after starting with AAA our son's truck was a victim of hit & run in the school parking lot. Total payout by AAA was around $3600. In April 2006 he was leaving a parking lot and backed up when he realized the nose of his truck was too close to oncoming traffic. He told the claims adjuster he backed up and stopped and a small vehicle hit the back of his vehicle. The other driver claimed he backed into her and he was found at fault. The payout on that claim was $1300. Consequently, the new rate on his truck is $4100/annually. This morning he was involved in a rear end collission - AM rush hour and a whole line of cars slamming on their brakes - he looked in his rear view to change lanes and when he looked back up the truck was in front of him. His estimate is $2700. I am inclined to pay it out of pocket rather than turn another claim in. Cory turns 21 in November and we have told him he will be responsible for his insurance at that time. My concern is 1) AAA will cancel me - or can they do that if my policy does not expire until 3/2008? 2) It will be harder for Cory to get insurance at a reasonable rate when he is no longer on our policy and 3) they will raise my rates horribly just because he is on my policy. I wanted to call them and ask what would happen but I don't want to raise a red flag. In hind sight we should have paid the $1300 out of pocket rather than turn it in. However, he was living in Arkansas at the time and we did not see the vehicle.

Answer
Well, are you willing to risk the other party being able to come back to you with a injury claim a year or two down the road?  Are you willing to risk AAA denying coverage because you never reported the claim as required in the policy?
Yes, both are very possible and happen every day.
I'd recommend that you review your policy before making a decision.
Good luck!