QuestionQUESTION: Hi. 4 weeks ago today, I very mildly marred the rear bumper of another car with my front bumper. The owner wanted to make a claim, and I did so without even considering if we could settle it between the 2 of us. Insurance paid out that claim for about $320. Today, I was pulling out of my parking spot & there was a large Ford F150 next to me that I couldn't see around very well. But I looked both ways and kept moving. Then I ran into the woman driving down the lane, who also could not see me. She did offer to settle it without insurance, but it will be $1,500-2,000 (she was able to get to her auto mechanic# for me to repair her damage.
My question is, can I call my insurance company and ask straight up whether I am in danger of cancellation or not if I have a 2nd claim filed in this 4 week time frame? I have no negative driving record, but I've only been with my current insurance for a little over a year #Liberty Mutual). I joined them because of a discount through a professional organization of which I am a member. I don't know what to do! I don't want to fork out $1500 from my own pocket, but I really can't afford to be cancelled... Any advice for me?
ANSWER: Hello Elisabeth,
You have distinct issues here. Please read carefully ...
First, unless you have an awful driving record with accidents and tickets, it is not likely that your insurance company will cancel your policy. More likely, in fact almost certainly, your auto insurance rates will go up.
Insurance rates are based on risk. The greater the risk, the higher the premiums. Because you have had 2 minor accidents, you are obviously going to be rated as a higher risk, that is, if you are found responsible for the accidents.
But ...
I can't even imagine that your rates would go up $1500 to $2000. If they do, you need to shop for another carrier when your policy comes up for renewal. So why would you pay so much out of pocket when the cost will very likely exceed any potential rate increase?
As for settling with the other driver, I ALWAYS advise against this. Her "friend" can't see all the damage unless he has actually torn down her vehicle. And what about a rental car? Are you going to pay for that too? Very very risky and an expensive proposition for you. Don't do it.
If it were me,(assuming I believed I was the at fault party) I'd just prepare for the higher rates and then see if I could do better at renewal time.
To prepare you to understand the pitfalls of a private settlement, you should read a blog post that I just put up. Here's the link: http://www.floridaautoinsurancecentral.com/2011/07/19/auto-accident-settlements-
One other extremely important issue ... are you sure this is 100% your fault?
If so, why do you think that? Your scenario is very common. At some point in time she had to see you. The vehicle that is going straight can always see the backing vehicle before the backing vehicle can see the straight moving vehicle. Think about it, you are sitting in the front of your vehicle, say, 12 feet ahead of the impact. You cannot see her, but she can see you before impact. She can also see your back up lights. Why didn't she stop??
The only exception would be if you just tore out of the parking space, and she did not have time to avoid you. If you were proceeding cautiously, in my opinion you are not the one at fault. The other driver had a "last chance" (insurance term) to avoid the accident and didn't. Just my opinion based on the facts you've given me ... but I'm not your adjuster.
If it were me, I'd file a collision claim - I hope you have collision - and she can file a collision claim with her carrier. Let the insurance companies decide. Present your defense - you might be pleasantly surprised! And, even if she refuses to cooperate and files a property damage claim against your policy, there's no guarantee your insurance company will pay her. Not if they believe she was responsible.
Hope this helps. Good luck!
Jane Pytel
http://SolutionsForYourInsuranceClaim.com
http://FloridaAutoInsuranceCentral.com
---------- FOLLOW-UP ----------
QUESTION: I did file a claim with my company, and I'd not even thought that she should do the same with hers... I don't know if, at this point, she can/will do so (or that I can get her to...), but it's definitely a great point. I wonder if we should have called the police and given statements?? Hindsight is always better... Anyway, I am very grateful!
Answer Hi again, Elisabeth
Glad I could be of help.
PS: ALWAYS call the police to document the accident. You never know how things might change later.
If you haven't already, make sure you have stressed your "last chance" argument to your adjuster.
Good luck.
Jane Pytel
http://SolutionsForYourInsuranceClaim.com
http://FloridaAutoInsuranceCentral.com
