Should I use my auto insurance or pay it.?

Question

So one of my employees backed into a car yesterday and the total repair bill is going to be $3000. My deductible is $1000. Should I pay it out of pocket or put it through my insurance. I've never had an accident before but I don't want my insurance provider to can me or jack my rates up and end up paying for it the next 5 years. What should I do, pay it or put it through insurance.

Answer 1

I assume your employee was driving a vehicle owned and insured by you.  Did he cause $3k to your vehicle or the other vehicle?   If the latter, then this would be a liability claim.   Typically, there is no deductible for liability claims.  

If you can afford to cover the damage on your own, go ahead and pay the guy.  However, you have the insurance use it.  That is why you are paying premiums.  I doubt your rates would increase substantially as a result of one loss.  You may also have "first accident forgiveness" on our policy.

Answer 2

Do you have the 3K?  

Yes your insurance will go up, but they won't cancel...they love the increased premium!