damaged but the other vehicle had slightly more damage. The insurance
adjuster gets involved and assesses the damage. Your vehicle's damage
is less than your deductible, so you plan on paying for your repairs
yourself. You also discover the total damage to fix the other vehicle
is less than $1200.
After visiting with your agent you find out the at-fault accident will
cause your premium to increase by $1600 over the next three years.
What do you do?
If your insurance company allows you to re-pay their out of pocket,
should you? Some insurance companies allow this practice. Pay $1200
now or pay $1600 over three years in additional premium. What if you
have a 2nd at-fault accident? Surely your premium will jump
considerably at that point.
It is a nice option to have and consider. The option to repay does not
keep the accident off your record, but does keep your premium from
being surcharged.
Not all insurance companies allow this practice but under the right
circumstances it can be a terrific decision, especially if you have
teenage drivers in the household. The odds of a teen driver having an
accident is substantially greater than the rest of the population.
Did you know a Good Student Discount can lower your auto premiums by
up to 20%? If you are the proud parent of a teen driver, you should
have your son or daughter visit with your agent and review their
premium and what would happen with their rate in the event of an
at-fault accident. Surcharges on teen auto policies can cause huge
increases in premiums. Teach your teen to avoid tail-gating and to
drive at a speed in which they are comfortable. Neglecting those two
rules increases the likelihood of an accident.
Gary Brown is principal owner of Choice Insurance of Arizona. He has
been serving Arizona residents for car insurance and home insurance
for nearly 14 years. Find his website at choicearizona.com/ Scottsdale
Auto Insurance / Scottsdale Car Insurance
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