Auto Insurance Claims: Under-age driver in minor car accident, car insurance company, insurance premium

Question
If my son was involved in a minor car accident (approx. $1,500 in damages) where he is 50% at fault, will they raise our car insurance premium?  We were told we should settle outside of our car insurance company because he is under the age of 18 and had his license for only a year.  Thanks for your help.

Answer
Hi Vic,

Yes. If your son was any percent at fault, the insurance company will use that to increase the premium. You should expect in the area of a 40% increase in premium. If the claim has not yet been reported to the insurance company and there is no police report, you should consider paying the claim yourself. Be sure to get a signed release form before you pay any money.

I hope this helps
Richard Hixenbaugh