Pay 500 to settle or let Car Insurance handle fender bender

[PRONG HORN 3165]

I bumped into another car the other day and the bumpee has a brother who works at a dealership.  He thinks all he needs is a bumper respray and not any actual part replacement or other damage.  Should I pay 500 cash to settle or let my insurance handle things?

[immamac 43555]

Cash

[pops 7044]

5 minutes ago, PRONG HORN said:

I bumped into another car the other day and the bumpee has a brother who works at a dealership.  He thinks all he needs is a bumper respray and not any actual part replacement or other damage.  Should I pay 500 cash to settle or let my insurance handle things?

Pay. But get a release signed by him. No way it's only 500 to fix properly unless you were going like 2mph. 

[PRONG HORN 3165]

23 minutes ago, pops said:

Pay. But get a release signed by him. No way it's only 500 to fix properly unless you were going like 2mph. 

 

Whatever normal backup speed is at a strip mall.  Slow crawl back up into his rear bumper.    

[MonkeyDoughnut 10439]

If was me... I agree with the above... cash, definitely cash.

[pops 7044]

1 hour ago, PRONG HORN said:

 

Whatever normal backup speed is at a strip mall.  Slow crawl back up into his rear bumper.    

Then maybe... but sounds like it is on private property so no cops. Give him the 500, have him sign a simple release and move on. 

[conVINCEd 21474]

Who’s your insurance company, how long have you been with them, and what does the rest of your driving history look like?  One of my cousins tried the pay cash thing to make it go away and it turned into extortion.

[WhatTheBuck 28825]

27 minutes ago, pops said:

Then maybe... but sounds like it is on private property so no cops. Give him the 500, have him sign a simple release and move on. 

What is this “simple release” you’re speaking of?

[Dahobbs 17805]

You pay for insurance for a reason. Use it. 

[immamac 43555]

35 minutes ago, Dahobbs said:

You pay for insurance for a reason. Use it. 

Bad advice. Never use insurance for stuff you can front cash for. The long run premium changes from claims is absurd compared to covering minor stuff out of pocket. 

[pops 7044]

54 minutes ago, WhatTheBuck said:

What is this “simple release” you’re speaking of?

Just a written doc that states the date, name of parties that there was an accident and he is taking 500 as settlement in full of any and all claims. Both sign it and done. But there may be issues in your state so maybe it isn't that simple. You just don't want to give him the 500 and he comes back with man...my bumper supports are bent and the plastic deflected too far and I need a whole new bumper and it is a special 3 stage paint and you owe me another 2000. 

[Deej 77163]

Was anyone in the car when he bumped it? If so, use your insurance.

[Dahobbs 17805]

28 minutes ago, immamac said:

Bad advice. Never use insurance for stuff you can front cash for. The long run premium changes from claims is absurd compared to covering minor stuff out of pocket. 

That's just not true. A small claim, especially if it's the only one recently, isn't guaranteed to change your premiums at all. If you don't use insurance when it can cover you, you're just wasting the premiums anyway. 

[pops 7044]

24 minutes ago, Deej said:

Was anyone in the car when he bumped it? If so, use your insurance.

Yeah...I didn't think about that... if there's some 3rd party that could claim injuries then 100% just go through insurance

[Jkwellborn 6877]

That's just not true. A small claim, especially if it's the only one recently, isn't guaranteed to change your premiums at all. If you don't use insurance when it can cover you, you're just wasting the premiums anyway. 

You’re wasting the premiums anyway. That’s just in case shit happens money.

[Dahobbs 17805]

23 minutes ago, Jkwellborn said:

You’re wasting the premiums anyway. That’s just in case shit happens money.

Not using insurance is just gifting money to insurance company. 

[WhatTheBuck 28825]

3 hours ago, pops said:

Just a written doc that states the date, name of parties that there was an accident and he is taking 500 as settlement in full of any and all claims. Both sign it and done. But there may be issues in your state so maybe it isn't that simple. You just don't want to give him the 500 and he comes back with man...my bumper supports are bent and the plastic deflected too far and I need a whole new bumper and it is a special 3 stage paint and you owe me another 2000. 

How much do you pay your lawyer to draw up that document?

[pops 7044]

28 minutes ago, WhatTheBuck said:

How much do you pay your lawyer to draw up that document?

A 3 sentence word doc with two signature lines?   Nothing. But I do have a law degree so I'm probably more comfortable with it than most 😅

[bluto 4947]

If it’s a newer model car then I seriously doubt $500. All the damn sensors and cameras and shit, check and recalibrate/reset. 

[deadshank 24653]

11 hours ago, immamac said:

Bad advice. Never use insurance for stuff you can front cash for. The long run premium changes from claims is absurd compared to covering minor stuff out of pocket. 

Financially speaking: yes

Liability-wise: your fooling yourself, mate.  
 

We are talking auto liability here. Your carrier will appoint law dogs to defend you should you be sued.  Not reporting the “accident” most likely goes against policy rules.  
 

You pay 500 cashish.  You get sued anyways because “hey, my neck hurts” and folks like being Aholes and the lure of easy, tax-free money.  
 

IC says “why you no report? You break rules. We no cover, fatboy! Find own lawyer.”

Now look at you.

Of course, homeowners property and  casualty is different.  You don’t really have much liability.  If your front door gets a case of powder post beetles (like mine did) just pay for it.  The deductible and replacement cost are about the same.  Purely a financial decision. 

[Dahobbs 17805]

1 hour ago, deadshank said:

Financially speaking: yes

Liability-wise: your fooling yourself, mate.  
 

We are talking auto liability here. Your carrier will appoint law dogs to defend you should you be sued.  Not reporting the “accident” most likely goes against policy rules.  
 

You pay 500 cashish.  You get sued anyways because “hey, my neck hurts” and folks like being Aholes and the lure of easy, tax-free money.  
 

IC says “why you no report? You break rules. We no cover, fatboy! Find own lawyer.”

Now look at you.

Of course, homeowners property and  casualty is different.  You don’t really have much liability.  If your front door gets a case of powder post beetles (like mine did) just pay for it.  The deductible and replacement cost are about the same.  Purely a financial decision. 

Eh, the reality is if the insurance company denies coverage, no one is pursuing an individual unless that person is wealthy. 90% of folks are essentially judgment proof, so it isn't worth it. But, again, if you don't use insurance when you have coverage, you're just boosting the bottom line of the insurance company. 

[Jkwellborn 6877]

Not using insurance is just gifting money to insurance company. 

I think you mean having insurance is gifting money to the insurance company. It’s a racket that the mob would be proud of.

[Dahobbs 17805]

1 minute ago, Jkwellborn said:

I think you mean having insurance is gifting money to the insurance company. It’s a racket that the mob would be proud of.

Sure. But their margins are based on the expectation that people will submit claims. By not submitting claims, you just increase their margins. Look, I get the idea behind avoiding an increase in rates. But I think that common wisdom of not submitting claims is misguided and ultimately self-defeating. Works great for the insurance company though. 

[Jkwellborn 6877]

Sure. But their margins are based on the expectation that people will submit claims. By not submitting claims, you just increase their margins. Look, I get the idea behind avoiding an increase in rates. But I think that common wisdom of not submitting claims is misguided and ultimately self-defeating. Works great for the insurance company though. 

I’m a believer in using it because I pay for it, but if my deductible is more than the cost, I’ll spend the money.

[Dahobbs 17805]

6 minutes ago, Jkwellborn said:

I’m a believer in using it because I pay for it, but if my deductible is more than the cost, I’ll spend the money.

Sure, you have to either way. But this is a liability claim. There isn't any deductible. 

Edited March 7, 2022 by Dahobbs

[Gene Parmesan 4022]

I'd go through insurance unless I trusted the person.  You can hardly get your oil changed at a dealership for under $500.  I get that the dealership brother may be giving the guy a break, but I wouldn't trust that he's just passing those savings on to you.  

[Gil Bang 26099]

I got "bumped" in a car wash tunnel.  Elderly woman behind me didn't put her car in Neutral, and ran into the back of me at idle speed.  Bill was $3000 or so, IIRC. 

[deadshank 24653]

32 minutes ago, Gil Bang said:

I got "bumped" in a car wash tunnel.  Elderly woman behind me didn't put her car in Neutral, and ran into the back of me at idle speed.  Bill was $3000 or so, IIRC. 

OK, Now This.  Thanks for participating.

[luke duke 6420]

I went the cash route in high school once. The guy signed a notarized document that released me from all future property and medical claims. I don’t know how airtight that document was, but never heard from him again.

[Nice Guy Eddie 13540]

Odds are the dude just wants the $500 and won't fix the car. For that transaction, you should be paying cents on the dollar of the actual repairs.

I'm never bumped into someone for minor damage so I don't know the best option but I would likely want to use the auto insurance to avoid potential lawsuits down the road. Maybe the simple document, you have the guy sign in exchange for cash, might hold up in a courtroom but I would want to avoid the courtroom.

Edited March 7, 2022 by Nice Guy Eddie

[Nueces River Rat 5597]

If you are at fault you darn well turn it over to your insurance to handle.   That simple $500 you think that will take care of the other party and make it go away might become a much bigger headache down the road.  Especially if they get a Lawyer involved.  All the sudden they might decide a few visits to a Chiropractor was needed and boom this suddenly becomes a personal injury issue assigned to some new Lawyer at a personal injury firm to help build their resume.  

[C-Man 27347]

On 3/6/2022 at 6:05 PM, Dahobbs said:

You pay for insurance for a reason. Use it. 

Wrong. (See below.)

 

On 3/6/2022 at 6:42 PM, immamac said:

Bad advice. Never use insurance for stuff you can front cash for. The long run premium changes from claims is absurd compared to covering minor stuff out of pocket. 

100% this.

 

On 3/6/2022 at 7:12 PM, Dahobbs said:

That's just not true. A small claim, especially if it's the only one recently, isn't guaranteed to change your premiums at all. If you don't use insurance when it can cover you, you're just wasting the premiums anyway. 

Even a small claim will at a minimum cost you your "loss free" credit. Even if your carrier has "accident forgiveness" never waste it on a small one if nobody is hurt and you can stroke a check. The general rule of thumb to use is the $3K threshold -- if the payout is less than that, you'll almost always come out ahead if you pay cash up front rather than have it go through your insurance due to increased premiums/lost credits in the next three to five years. Not to mention you're only adding activity to your record if you decide to shop your coverage in the future. While I'm on the subject, be careful with glass claims and towing that carriers will often handle for you. These little fuckers add up like paper cuts.

[woohorn 1131]

Also doubt the value of the insurance claim would only be $500 with rental car.

Pay cash and consider yourself lucky that he didn't insist on going through insurance.

[conVINCEd 21474]

11 hours ago, C-Man said:

Wrong. (See below.)

 

100% this.

 

Even a small claim will at a minimum cost you your "loss free" credit. Even if your carrier has "accident forgiveness" never waste it on a small one if nobody is hurt and you can stroke a check. The general rule of thumb to use is the $3K threshold -- if the payout is less than that, you'll almost always come out ahead if you pay cash up front rather than have it go through your insurance due to increased premiums/lost credits in the next three to five years. Not to mention you're only adding activity to your record if you decide to shop your coverage in the future. While I'm on the subject, be careful with glass claims and towing that carriers will often handle for you. These little fuckers add up like paper cuts.

You are spot on about the glass and towing, and I would agree with you if the damage was to your own vehicle, but there is an unknown here when it’s the other guys car.  

[HRSchenker 2288]

Having been on the business and vehicle side of liability/insurance issues, I'm gonna go against the herd and say use your insurance. I don't trust people to be honest nor do I trust my ability to get a document signed that releases me from future issues and have that release not get thrown out by a court. I could also be a little biased because I work in health care and know how to play the deductible/max oop game. It's honestly a gamble at times and you don't want to be on the losing side. If a major situation happens and you've been fronting cash the entire time you are beyond fucked.

[Gene Parmesan 4022]

The dude's brother works at a dealership and you are at fault.  They can certainly fuck you up if you go the cash route, but cash is obviously the best option if you trust everyone to be honest.  How much is protecting yourself from that worth to you?  

[C-Man 27347]

6 hours ago, Gene Parmesan said:

The dude's brother works at a dealership and you are at fault.  They can certainly fuck you up if you go the cash route, but cash is obviously the best option if you trust everyone to be honest.  How much is protecting yourself from that worth to you?  

If they start fucking around, you contact your insurance at that point.

[C-Man 27347]

6 hours ago, Gene Parmesan said:

The dude's brother works at a dealership and you are at fault.  They can certainly fuck you up if you go the cash route, but cash is obviously the best option if you trust everyone to be honest.  How much is protecting yourself from that worth to you?  

OP must've hit these guys.

[Mach 1 1677]

Doesn’t it depend on your carrier? State Farm has taken care of numerous issues with our family without an issue or $ hike.*

Deductible is $500 but I’d rather sleep well at night and pay them then pay some stranger.

* I reserve the right to revise that based on a recent incident with my son.

[ROFL BOX 6649]

What about...

I came out of Home Depot & someone f'd up the front of my truck (grille guard is mooshed in enough to prevent me from opening the hood, so by the time of my next oil change I need to get this shit figured out) & put part of the Ranch Hand guard into the driver's fender.  Paint was already screwy (got the truck used), so whatevs on that part.

I didn't even get the "Hey, I hit your truck & I'm not actually leaving any info here but that old lady was watching me, so I'm putting a rando piece of paper under your wiper blade so she will just leave & won't rat me out" type thing.

Uninsured motorist?  What's the deal here?  I'm guessing this is gonna mean (at best) 1 fender & maybe new brackets for the Ranch Hand.  At worst, maybe $ 4,500 or so?  Truck is a 2004, however it's a Cummins & I've seen shitboxes like me advertised on Facebook in the Dodge Ram groups for $ 12,500 or more.

[C-Man 27347]

9 hours ago, ROFL BOX said:

What about...

I came out of Home Depot & someone f'd up the front of my truck (grille guard is mooshed in enough to prevent me from opening the hood, so by the time of my next oil change I need to get this shit figured out) & put part of the Ranch Hand guard into the driver's fender.  Paint was already screwy (got the truck used), so whatevs on that part.

I didn't even get the "Hey, I hit your truck & I'm not actually leaving any info here but that old lady was watching me, so I'm putting a rando piece of paper under your wiper blade so she will just leave & won't rat me out" type thing.

Uninsured motorist?  What's the deal here?  I'm guessing this is gonna mean (at best) 1 fender & maybe new brackets for the Ranch Hand.  At worst, maybe $ 4,500 or so?  Truck is a 2004, however it's a Cummins & I've seen shitboxes like me advertised on Facebook in the Dodge Ram groups for $ 12,500 or more.

Get a solid estimate and then decide. My inclination is to file as UM claim. Those are much, much better than At-Fault (AF) or NAF accidents.

[High Plains Drifter 11055]

 

In the past three years, my wife has hit a javelina, backed out of the driveway and hit a pole with the still open rear door; and backed into a another car (despite the presence of a fully operable back up cam). Cross reference with wives thread.

All three were way over the 500 deductible. We filed claims on all three, State Farm cut us checks with no hassle, and no rise in rates (fingers crossed). We also have no tickets between us in over 15 years.

Unless you just have really really shitty insurance, or a really shitty driving record, I can't imagine not filing a claim that is a few thousand over your deductible.

 

[conVINCEd 21474]

4 minutes ago, High Plains Drifter said:

 

In the past three years, my wife has hit a javelina, backed out of the driveway and hit a pole with the still open rear door; and backed into a another car (despite the presence of a fully operable back up cam). Cross reference with wives thread.

All three were way over the 500 deductible. We filed claims on all three, State Farm cut us checks with no hassle, and no rise in rates (fingers crossed). We also have no tickets between us in over 15 years.

Unless you just have really really shitty insurance, or a really shitty driving record, I can't imagine not filing a claim that is a few thousand over your deductible.

 

They don’t ding you for animals. 

[ROFL BOX 6649]

On 3/23/2022 at 10:57 AM, conVINCEd said:

They don’t ding you for animals. 

Well, we don't have any evidence to know if the wife is a Fox, Minx or Weasel.