How do you pay for car damage without insurance?
I was borrowing my mom's car and rear-ended someone. I don't want to file a claim with her insurance and cause her rates to increase. How can I pay for the damage without using her insurance?
Emily Maracle · Answered on Oct 18, 2021
Reviewed by Shannon Martin, Licensed Insurance Agent.
“Your mom’s car insurance rates could increase if you or the other driver file a claim. However, you can avoid submitting a claim by paying for the car damage out of pocket.
If you and the other driver agree to settle outside of insurance, you would pay for the damage yourself. When agreeing to this, make sure you both sign a written statement and take pictures of the damage. Calling the police can solidify any accident details as well.
Doing this will protect you and your mom. While it may seem overly cautious, some situations have arisen where people with verbal agreements have gone ahead and filed claims anyways. This can put anyone in an awkward position with their insurance company and may result in claim denial.
Before agreeing to settle without insurance, ask the other driver to get an estimate of repairs. If you can’t afford to pay for them out of pocket, go through insurance. While your mom’s rate may increase, the damage would be fixed without issue.
If you need to submit a claim, your mom’s rate may not instantly increase. She would still have the ability to shop around to find a lower rate. Some companies also offer accident forgiveness.
If your mom wants to save money on car insurance, the Jerry app is a good place to start. As a licensed broker, Jerry does all the hard work of finding the cheapest quotes from the top insurance companies and buying new car insurance. Jerry will even cancel your old policy for you.”
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