Hey everyone, I recently hit a big concrete pole in a parking lot with my Honda Civic. I took it to two nearby repair shops, and both said the wheel is pushed back. It looks like I’ll need a new door and fender. The total estimate for the repairs is around $3.5k+. My insurance is with GEICO, and I pay about $940 per term (around $140/month). My deductible is $500, and I live in Maryland.
I have enough money to cover the repairs myself, but I’m not sure whether I should file a claim or pay out of pocket. This is my first accident, and I’m worried I’ll lose my safe driving discount of $666 per term ($111/month) and face higher premiums.
I’m leaning towards paying out of pocket if the cost stays around $3.5k, but I’m not sure. Can I call GEICO to ask about the premium increase without filing a claim?
Call customer service and ask if your policy has first accident forgiveness. Not all policies have it. If yours does, you can file the claim and just pay your deductible. The cost of repairs is high enough that using your coverage makes sense.
You won’t see an increase until your policy renews. You should get renewal papers about a month before the policy ends. If your premium goes up, and you have accident forgiveness, you can use it to prevent a surcharge. If the increase is too high, shop around for other options.
Dakotah said: @InsureGenius
That sounds great. So if I use accident forgiveness, will it cover everything, and will the accident show up on my record?
The accident will still show up on your record. But with accident forgiveness, GEICO won’t add a surcharge to your policy.
Just keep in mind that your premiums could go up for other reasons, like the general cost of insurance increasing. But accident forgiveness will keep your premium from going up because of this accident specifically. Be sure to check your renewal papers and confirm they applied the forgiveness.
Why would you tell your insurance about a single-party accident? If you have the money, just pay out of pocket. You’re already paying almost $1k a month for insurance. You’ll probably end up paying a lot more later on. If you didn’t damage anything else besides your car, just keep it between you and the repair shop. That’s my advice. And I usually don’t respond to these types of questions, but I’m feeling nice today.
Dakotah said: @Teagan
Thanks for your advice! Someone else mentioned I could use my accident forgiveness. Do you think I should still report it to use that?
Honestly, I don’t think it’s a good idea to report it. Your insurance will see you as a higher risk if you file a claim. But it’s up to you.
@Teagan
I’m confused about how it works. I thought I wouldn’t be seen as a higher risk if I use the forgiveness. If I use it, I keep my safe driving discount, and my premiums won’t go up, right? But if there’s another accident, then I’d be treated like normal, right?
Dakotah said: @Teagan
Thanks for your advice! Someone else mentioned I could use my accident forgiveness. Do you think I should still report it to use that?
If you’re going to use your accident forgiveness, switch to a new company afterward. Your premiums will definitely go up if you stay with your current company after using it.
Sunny said:
If you’re going to use your accident forgiveness, switch to a new company afterward. Your premiums will definitely go up if you stay with your current company after using it.
The accident will stay on your record, no matter what.