My Fault - Backed Into Parked Car

[Fab5Hill33]

What is the name of your stWhat is the name of your state? Michigan

I was waiting behind a car for gas at a gas station. Decided it was taking too long and that I would go find another gas station. I decided to back up and exit the premise. I put the car in reverse and dinged a guy who was also waiting in line about one foot behind me. I did not accelerate and I immediately stopped once i heard/felt the ding. My car (an SUV) suffered no significant damage, just a scratch on the corner of the bumper which I wouldn't bother repairing. The other driver's car (a sedan) received a scrape over the bumper which extended just a bit to include the hood. There was a very minor dent associated with it as well.

Police were called and a report was given, and both parties exchanged info. I am now being told by the other party that his repair will cost $850 and they are suggesting to me that it would be better for me to pay this myself rather than get my insurance company involved.

The cost seems excessive for the damage, but would only make sense if the only way to repair the car would be to replace the entire bumper and hood (which I think is extreme, but I don't know).

My question is: How should I go about this? Should I simply turn it over to my insurance? Will my rates skyrocket from this incident and therefore would it be wise to pay $850 in the long run? If I can negotiate (which I am not sure is possible with the other party), how much would make it "worth it" to pay out of pocket and not report to the insurance company? The incident was my fault, but I just figured this is why I pay for insurance. I'm a good driver (my only 'accident' to this point) otherwise, without any bad history. Should I call my insurance company and get their input or is it true that once I report it to them I can't settle?

Sorry for such "simpleton" questions. Just trying to make an informed decision.ate?

 

[teflon_jones]

The estimate doesn't sound too out of line, but maybe a little high. They'll have to paint two different body panels to match, and depending where on the bumper/hood the damage is, they may have to blend it into the quarterpanel.

My advice would be to pay this out of pocket. It'll cost you more to pay the deductible and the hike in your rate that you'll see for the next 5-7 years.

 

[JETX]

It'll cost you more to pay the deductible

HUH??? How would the OP have to pay a deductible when covering a claim by someone else??

and the hike in your rate that you'll see for the next 5-7 years.

Insurance rates can be affected by a claim usually for 36 to 39 months (depending on state).... not the 5-7 years you indicate.

However, I do agree that the $850 does not sound excessive.

 

[teflon_jones]

HUH??? How would the OP have to pay a deductible when covering a claim by someone else??

That's an excellent question. I think I need to get more sleep...

Insurance rates can be affected by a claim usually for 36 to 39 months (depending on state).... not the 5-7 years you indicate.

I was going a little long on purpose, though I'll admit I stretched it by saying 7 years. I should have stuck with 5. It depends on the state, and also on the insurance company. I couldn't find any information for how long surcharges may be used as factors for your rates in Michigan. Here in MA, minor at-fault accidents are surchargeable for 3 years, major ones for 4 (unless the 3 years following the accident are incident free, then it's no longer surchargeable after 3 years). Each insurance company has their own rules too outside of state law. For instance, State Farm will generally waive rate hikes for your first accident if you've had a clean record for 6 years.