Reply With Quote1. just find out from your insurance company, what your new higher monthly premium will be
2. do a net present value calculation, discounted at the rate of your line of credit (nper being 36 months)
3. if it's less than 3,300, go for that
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About a year ago I was involved in a one vehicle accident which resulted in a section of guard rail being damaged. Cops came to the scene and took down all of the information but no charges were laid. Bike was towed home, and I was taken to the hospital.
I never informed the insurance company hoping that I can pay for the damaged gaurd rail myself and not get the insurance involved. However I just recieved the invoice for the repair and the city wants ~ $3300 for the 3' of guard rail they replaced. I did not think it was going to be that much and am actually quite shocked.
Anyway now I need to get this resolved asap as the city gave me 30 days to pay. My dilema is, should I bite the bullet and put it on my line of credit and pay it off myself. Or should I just file a claim and hope that they dont raise my premiums through the roof.
My motorcycle is insured with company A.
My car is insured with company B.
If company A finds out about this accident, will both companies raise my premiums or just company A?
Company B has accident forgiveness. Company A does not.
1. just find out from your insurance company, what your new higher monthly premium will be
2. do a net present value calculation, discounted at the rate of your line of credit (nper being 36 months)
3. if it's less than 3,300, go for that
RACE #36
2011 CRF450R SM
1. How can I find out what my new higher premium will be without telling them about this accident?Originally Posted by georgy
2. I am not sure what you mean by this? This must be some Finance lingo!
3. Are you trying to say I calculate the difference between my new higher premium and $3330 + interest.
1. just call and ask "how much will my premium go up IF I claim an at-fault accident"
2. ok, if you don't know what that means, just subtract your NEW higher premium from your CURRENT premium and multiply the difference by 36 months
if it's more than $3,300, definitely go with the line of credit option
3. you might however, want to consider what will happen if you claim a second at fault accident during those 36 months, if you do this through insurance
RACE #36
2011 CRF450R SM
If you have a good relationship with the agent you can ask
hypothecially....
also before you ask anything ask them if the conversation is being recorded. (I know i can ask my agent "hypothecially if?...)
did u claim insurance with the motorcycle crash? it might need to be readjusted and i think it will be still consider as a single event.
which town was this in?
"I never informed the insurance company hoping that I can pay for the damaged gaurd rail myself and not get the insurance involved."
so you never even made a claim for ur wrecked motorcycle?
No I never made a claim at all. I am fixing the bike myself.
might as well not claim insurance to make urself claim free. claims usually stay for 6 years. which town was the guardrail in?
Actually, he's right. It's 5 or 6 years that a claim might raise your premium for.
I revise what I previously said. Multiply the premium difference by either 60 or 72 months.
Considering the damage is only $3,300, I'm 99% sure that you're better off paying it yourself.
RACE #36
2011 CRF450R SM
3300/72= $46/month over 6 years
i doubt ur premium will rise less that that so its better to pay off urself. u can get safe driver benefits still since u never made a claim. insurance usually rises by at least the payments of ur amounts + additional risk factors.
ive heard that premium only go down after 6 year a little bit per year.
Last edited by qaz393; 04-21-2010 at 11:31 AM.
I hope that I’m not raining on your parade here. You will also want to consider what if the town sent the bill to your insurance company as well? They usually send it to both you and the insurance company. If they find out about the accident, it will be on your record even if they don’t pay out. You might want to contact the rep from the town who is handling this. Find out if they sent it to the insurance company.
Further, you do not owe them the replacement / repair cost. You owe them actual cash value. Ask them how old the railing is and what the expected life span is. Depreciate for age and that is what you owe.
they usually dont send to insurance company. they let u deal with it either u forward it to ur insurance. i dont think u can bargin with the city for lowering the cost...
That's a great point! I just sent an email to the accounting assistant who is handling this matter. If they sent a copy to the insurance, I am screwed!
Are you certain that I do not owe the total repair bill? Both labour and parts?
As a former claims adjuster, I have first hand experience in matters such as this. We always get these bills for damage to property from the city/town. We were always provided with police reports (sometimes up front and sometimes upon request) to prove damage was caused by the insured. We also always negotiate the settlement of the damage for actual cash value. If the rail is worth $1000 then the city has no right to ask for the replacement cost. If this was taken to court, they can only sue for actual damages, which is the actual cash value.
The guard rail and material was invoiced at ~ $2000. Labour was ~ $1000. Administration fee of 7% on top of that. So you are saying that I should only pay $2000, and not the labour it cost to replace the guard rail?
I'm not surprised that the cty would bill $3300 for damaged property, since they had to complete an "emergency repair". Public expenses are always much higher than you would expect.
I'm sorry to hear about your situation. Technically, you were supposed to have reported the collision a long time ago, so I'm not sure how your insurer will deal with a claim on an unreported event that occurred a long time ago. Perhaps one of the Claims folks can chime in. If you do end up claiming, it's a shame that you didn't get them to pay for your bike too
If you do claim, the increase to your rate is not a flat amount for the next six years. Your "surcharge" will be highest in the first year following the claim, and then decrease for each year that you remain claims free after that.
I'm an Actuarial Analyst for a Major Canadian Insurance Company. I analyse claims patterns to determine overall rate changes, as well as relative premium differences by various risk characteristics (eg. age, experience, claims, convictions, usage, etc.)
Unless it's private, please post insurance-related questions in the forum rather than sending me a PM.
Current: 2001 Suzuki GSXR1000 (4th Season)
Previous: 1996 Honda VFR750F (4 Seasons)
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When you are considering if you should make a claim or not, you will also want to factor in the cost of repairing your bike. You will have to look at your total out of pocket costs vs, potential increase in premiums. With all things equal, as the accident gets older, your rates may decrease as you years accident free increases.
You have one year from the date of the accident to make a claim for the damages to your bike before you lose your right to make a claim.
The city wants to get paid for the repair cost and will involve all parties that it can seek funds from. By sending a bill, they are in effect inviting you to settle this matter out of court. They will try to get away with getting paid for the full amount, but I have never seen a claim where they refused to settle based on a negotiated Actual Cash Value.
I dont have collision so I would not get anything.it's a shame that you didn't get them to pay for your bike too
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