QuestionMy husband recently tapped a car while backing up while this car was parked behind our driveway. We gave the driver all of our information and he asked for our auto insurance number. We would like to pay for the damage directly without having our insurance company file a claim and pay out on it or have it go against our deductible. Is that a possibility, or is insurance required to be involved if his insurance company demands it? Can't we just pay for the damage directly? Would it still count against us for our insurance?
AnswerA couple of things here.
If your insurance company handles the other person's damage, there is no deductable. Deductables only apply to claims that you file to cover damage to your own vehicle.
If you are going to pay the damages out-of-pocket, you'll need to be prepared to write a check for whatever amount the man asks for. If you fail to do so, he can find out your insurance info and report it to them or he can sue you.
You also run the risk of writing the first check and then his shop finding hidden damage that you'll also be asked to pay for. It is at this point that you'll then be wanting the help of your insurance company, but by letting the situation get this far, you've also stripped the insurer of their right to properly handle the claim and depending on the specifics, they can reserve the right to deny coverage.
In your policy, it states that you agree to report all accidents as soon as possible and you also agree NOT to enter into any settlements that will obligate the insurer. By settling your own claim, you are removing the insurer's right to properly defend you and pay for what is actually owed. The insurance company only owes for the claims that they have settled themselves.
As far as how a claim counts against you on your insurance, this varies from state to state and from company to company. Your agent is the best person to ask.
