Will my insurance premiums go up from this situation?

Question

This is 2 weeks after the accident (today). After the guy talked to his insurance they said that they will cover his damages and my insurance won't be affected. This morning the guy I hit said he was still going to bring his car in for an estimate in case I still want to pay for the damages because he said he talked to an OPP officer and the officer told him that his insurance company will come after my insurance to have the damages paid for, resulting in higher insurance for me. Should I just tell him to go ahead with the repairs it and deal with my insurance when it happens....if it happen?

Answer 1

Your insurance company has ben notified of accident.  Thus, you do not gain by paying the claim. Rather, you are just giving free money to the insurance company.

Insurance premiums may be affected.  It depends upon your driving record, age, etc.

Answer 2

YOU don't have the authority or power to commit YOUR insurance company to pay out for this other guy.

You need to report this claim to your insurance company.  

Will your rates go up?  It's going to depend on if the accident was your fault or not, and how much actually gets paid out, total, for this loss.

Answer 3

Since its your fault your rates will go up.  In California rates only .  In California rates only go up if damage is over $750.  Actually it is if the insurance company pays out more than $750.   That's California Law.

It is always a bad idea to pay for damages yourself.   What if there is a problem later?   What if the other person finds more damage later on?   Would you be willing for pay for it?  Even if it is a lot more?   After you make a payment the insurance company will no longer help either one of you because the other party always accepted a settlement.

Just let the insurance company handle your claim.   You did not say if your car had damage.  Do you have colllission coverage?  If you do, then have your insurance company fix your car too.

And, the officer is right.   After that guy's insurance pays for his damage, they will be notifying your insurance company for their money back  and his deductible money back too.

Licensed Insurance Agent