The value of accident forgiveness
I decided to make a post after I read that some people are suggesting to the OP, who was involved in an accident, to make a claim through the insurance because of $1100 bumper damage. I think that is a horrible advice. If he has a deductible that makes it even worse than just horrible advice.
While ago, in 2005, I was involved in a minor, single car accident. The repair was $1800 and my deductible was $500.
I consider(ed) myself to be a safe driver. This was my first accident after 12+ years of driving so I decided to go through the insurance and give up on my accident forgiveness benefit. Why not, right? I just keep paying for the insurance for all of these years for nothing.
Basically I sold my accident forgiveness claim for $1300.
I assumed that I will earn my accident forgiveness benefit before I get involved (if ever) in the next accident since I am such a careful driver.
My dad, coincidentally, one year later, the same story, the first accident, single car $2200 damage, $500 deductible......why not claim it? Safe and careful driver. We both live in the same house, so it is one policy. You guys already know where I am getting with this.
The following year my dad was involved in 2 car accident where he hit a brand new Lincoln with 25 KM ( I always tell him he did this in style) and we had to claim it through the insurance.
Our premiums skyrocketed rightfully and as per my estimate, we paid over $25,000 extra in insurance premiums until our premiums went down to the lowest rate possible.
We clearly made a mistake when we made those small claims and we gave up our accident forgiveness benefit. I didn't know better at the time.
What is your breaking point, dollar amount when would you pay for the repair out of your pocket and when would you make a claim through the insurance.
While ago, in 2005, I was involved in a minor, single car accident. The repair was $1800 and my deductible was $500.
I consider(ed) myself to be a safe driver. This was my first accident after 12+ years of driving so I decided to go through the insurance and give up on my accident forgiveness benefit. Why not, right? I just keep paying for the insurance for all of these years for nothing.
Basically I sold my accident forgiveness claim for $1300.
I assumed that I will earn my accident forgiveness benefit before I get involved (if ever) in the next accident since I am such a careful driver.
My dad, coincidentally, one year later, the same story, the first accident, single car $2200 damage, $500 deductible......why not claim it? Safe and careful driver. We both live in the same house, so it is one policy. You guys already know where I am getting with this.
The following year my dad was involved in 2 car accident where he hit a brand new Lincoln with 25 KM ( I always tell him he did this in style) and we had to claim it through the insurance.
Our premiums skyrocketed rightfully and as per my estimate, we paid over $25,000 extra in insurance premiums until our premiums went down to the lowest rate possible.
We clearly made a mistake when we made those small claims and we gave up our accident forgiveness benefit. I didn't know better at the time.
What is your breaking point, dollar amount when would you pay for the repair out of your pocket and when would you make a claim through the insurance.