Occasionally, this would be ok, especially if you’re trying to avoid your company recording a claim. Such an occasion might be a one-car accident with minor damage when no police have been called. Think of sliding off the road on ice into a snowbank scratching the side of the car or in a parking lot at Walmart when you come out and see that someone bumped your car and left without telling anyone.
Keep in mind that the claim would remain on your record with all companies for 3 years and some for 5, so if it increased your premium, it could easily over 3 years equal or exceed the damage itself. Car insurance free first month is not meant to cover small claims anyway, and you need to pick what risk you are willing to take. You do that all the time when you select what deductible you are willing to choose.
When not to pay, damage to your car is if someone else is involved. It is not uncommon for someone to suggest, let’s not turn in a claim, and both take care of our own damage.
– After the fact becomes, he said/she said issue. I recall an event when crossing a bridge into St Louis a lady brushed up against a truck and when they both pulled off on the other side of the bridge to examine the damage the lady and her passenger said it was no problem let’s just forget about it and she drove off without leaving any information. A few hours later, the truck driver gets a call from the local Police dept about leaving the scene of an accident and damage to the lady’s car. Moral of the story without a police report it is your word against theirs.
Should you ever pay damages to someone else car that you damaged out of your own pocket When it appears that it was your fault
You should never offer to pay for damage to someone else’s car even if you think you are directly at fault. Laws are not the same in different states. For example, in Illinois, you could be partially at fault and still have to pay. Even if an officer gives you a ticket makes you think you are at fault, remember the officer is not the court, and that is only an opinion.
If you buy now pay later car insurance policy, you are also purchasing legal defense, and no matter how hard the other driver demands you pay, the process is through the legal system, and your company has your back. I recall a situation where my family rented a motor home, and when we returned home, we kept it overnight to take it back the next day after I returned from work. Unfortunately, my father in law in his 70’s decided he would take it over without my permission.
Since he had never driven a motor home, he forgot to put the steps up before he took off. On the bridge & Peoria, IL, the steps struck the hub caps of an expensive sports car. Traffic was stopped for several blocks, and when I finally was able to reach the scene, I found my father in law trying to give the driver (who was driving his girlfriend’s car) several hundred dollars to pay for the damage. The police had not yet made their way through, so I grabbed the money and told him to put back in his pocket. I knew exactly what was going to happen; the driver was going to pocket the money and turn in a claim.
Three critical things you should have a sit-down talk with your teen driver before they start driving
Be aware of anyone you accept a ride with, especially younger drivers that might like to show off in front of you. I once had a ride to a track meet with three buddies in his dad’s new ford. To make a long story short, we left the road at 90 miles an hour. I was pinned against the back seat by the other buddy staring right at the speedometer we hit a concrete culvert but were lucky.
- Very important is that if anyone in the car has open alcohol,
everybody gets a ticket. You really don’t want that one your record for the next 5 years.
- If your phone rings and you feel you have to answer, pull off the
side of the road before you do. Hefty fines are there for a reason.
Why do Insurance Companies use your credit score to determine your premium?
Insurance has a long history of rating in groups of risk. In the old days, one of those groups was people that had a certain driving history, by age and prior record. This was when a rate was developed on the basis of what you have already done. Technology has come a long way and now companies have newer tools and are more likely to consider what they think you might do. One of those is the credit score.
As always premium development is not perfect but developed on the basis of averages. It has been firmly established that credit scores are meaningful at risk. It is recognized that it is not perfect, but in every case when challenged by various State insurance departments it has shown a relationship. Some companies are more eager to site the credit score in their rating, but the open market separates some of the companies due to how it affects premiums.
What kind of vehicle generally cost less to insure?
Generally, you will find a 4-door sedan less costly than other models. Some exceptions could be not so much in value (although that is important) but rather in damageability. For example, a vehicle loaded with extras like technology is going to cost more. The reason is that if you have an accident and the cost to repair is about 65% of the value of the car, it is most likely the car will be considered a total loss, and the company will take the car for salvage.
In today’s modern car, you will find miles of wires or sensors throughout the car and may find your car with what looks like moderate repairable damage cannot be made whole. Sometimes you may find a bargain car that has been repaired with a salvage title. In that case, it is expected that the car will be very prone to troubles and you want to be sure you are not buying a used car with a “salvage title” I recently saw a car that was valued about $10,000, but the cost to repair was about $12000, and someone repaired it – only to have one headache after another.
