Small Teen Fender Bender - Insurance or Not

[jab11]

My question involves an injury that occurred in the state of: Colorado

My son rear ended a vehicle with 2 passengers. Police were not called, no apparent injuries. The owner of the vehicle got an estimate of $800-1100 depending on extent of damage. I did report to my insurance co that this accident occurred (for lawsuit claim purposes), but have filed no claim. My insurance co has "closed" the issue because I did not have any further information for them.

Should I just pay for the damage and get a release from the driver/passenger for future injury/damage claims, or go through my insurance (USAA)? I want to keep my rates low but not set myself up for a lawsuit either. Maybe by reporting it to them once I'm covered for future lawsuits?

[Betty3]

Does the party that was hit have the name of your ins. co.? (I assume you're saying the car/your son is covered under this policy.) It seems your son was at fault. If the other party doesn't have it, they may be calling you/your son or their ins. co. may be calling you/your son to get the name of your ins. co. so a claim can be submitted to them.

You can offer to pay the other party instead of using your ins. if an acceptable amount can be agreed upon to both you & the other party. I would definitely get a release from any future claims.

[jab11]

The party and I are both covered under USAA. He said he would sign a release from future claims if I pay for the damage personally (he sent me the estimate from a reputable body shop). I can pay the $800-1100, have him sign a release, and perhaps be done with it. Just wondering if I'm at any risk not going through my insurance company. Or, if maybe the insurance company wouldn't raise my rates my rates at all for a first time claim in 10 years (although it's a new teen driver). With a $500 deduct., I'm out the add'l $300-600 if I do it without a claim.

[Betty3]

The party and I are both covered under USAA. He said he would sign a release from future claims if I pay for the damage personally (he sent me the estimate from a reputable body shop). I can pay the $800-1100, have him sign a release, and perhaps be done with it. Just wondering if I'm at any risk not going through my insurance company. Or, if maybe the insurance company wouldn't raise my rates my rates at all for a first time claim in 10 years (although it's a new teen driver). With a $500 deduct., I'm out the add'l $300-600 if I do it without a claim.

It sounds ok to pay the damage personally & get a release from future claims.

They might raise your rates if you submitted a claim - I can't say positively. If you don't submit a claim & pay yourself, then they shouldn't since they have no claim to pay.

[sweetvabreeze40]

Hi Jab- I am not a lawyer but just had a similar incident with my teenager. She rear ended another vehicle and caused very minor damage (under $100 to repair a small dent and scratch). I reported it to my insurance although it was not reported by the police. My insurance company told me that if they did not pay out any claims on it, then it would not affect my rate. They also said that if the other party came back and claimed more later, they would not reimburse me for what I had paid out of pocket. Then three weeks later, my 6 month premium came in the mail. Low and behold, a rate increase. when I inquired about it, they said that they had determined her to be at a higher risk because of the fender bender plus due to an injury she had sustained in another accident where that driver did not have insurance (she was a passenger in the car and it was a single car accident). So, just beware that you may be told you won't have an increase in rates but then get hit when your premium comes due.

[Betty3]

Did your ins. have to pay a claim for the accident your teenager was in where the other party had no insurance? If so, that may be the main reason for the increase - they paid a claim.