I had a run-in with a post in a parking lot (long story) that caused ~$2k of body damage (maybe more). We have a $500 deductible with Travelers, but I'm trying to decide whether to file a claim.

Talking to our broker / independent agent, we get a 12% discount for no incidents that would go away for 3 years. If this is right, then we would be out our $500 deductible plus $500 in higher premiums.

Do these amounts sound right? I'm leaning towards filing a claim on this but was hoping to see if there's anything I'm missing here.


Thanks!

File the claim. That's what insurance is for!

TxSquarebody said:

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500 deductible + 500 increase x 3 years for 2k of damage. Looks like a zero interest loan to get your car fixed. File the claim.

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Thanks for the input, Tx. Just to clarify: the $500 would be the total premium increase spread across 3 years (based on losing the 12% discount). I was hoping someone else with insight into Travelers would confirm / reject the impact to premiums.for making the claim.

You are making a claim, it will have an impact. If it's just a lone incident With not much accident Or ticket history before, it won't have too much of an impact probably on the overall premium, but you will lose your 'safe driver' discount or whatever. They all have a similar discount and just call it different things. I don't handle personal lines, just commercial, so no real knowledge of Travelers policy on this type of thing. But if you have the cash flow to just pay out of pocket, comfortably, I would say just do that. If it was someone else's car for liability, and it wasn't one of your kids that had the wreck, I almost always advise to let the insurance company handle it so your back side is protected if they decide to file a medical, or get the car back for a week then say XYZ isn't working like it used to, you owe me for that now, etc.

Tumble Weed said:

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I kind of compare them to casinos; the insurance company always wins in the end. You can pay the $2000 out of pocket and keep the low rates, or you can pay higher fees over a long period of time, but they will recoup their loss.

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They recoup their loss, of course, or they wouldn't be in business. However, they don't necessarily recoup ALL of their direct loss with premium INCREASES on YOUR account, even over time. You'd have to know what your premium would go up to had you not filed a claim. In the short term you may be able to know but in the long term (over 2-3 years) that's impossible to know. Even the company doesn't know.

So make the decision based on what's good for you in the short run. You may change companies later or have life/circumstances change.

Furlock Bones said:

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File the claim. Shop for a new plan when your rates change.

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This. I shop insurance like I do electric providers