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By admin, July 6, 2010 7:45 pm

Will my insurance rates go up if I report auto accident not my fault for hit and run?

While I was shopping inside the mall an automobile rear ended my car while it was parked in the parking lot. Of course I didn’t find out until I left the store and walked up to my car and saw the damage. I don’t know who hit it because it was a hit and run and they left while I was in the mall. I have a $500 deductible. If I report this to my insurance company, State Farm, will it make my insurance rates go up and will it count against me, since there is no one that I can get this on (they got away). I estimate the cost of repair will be more than $500. Should I report it or not to my insurance company? If I don’t report it I will have to pay full repairs out of pocket. What do you advise in this situation?

It depends on what state you are in on this one. Some states allow it, and some do not. You probably will not see a surcharge specifically related to this incident, but you could be put in a higher rating category (in other words will not have the same rates as the “best” drivers). If you have a few dings on your record already, this could be the thing that puts you over the edge. If your record is otherwise clear (no tickets or accidents) and the repair cost is above say a 5%-10% surcharge for a few years, it might be worth it. If the insurance payout will not be above $250-$300 after your deductible, is probably not worth making a claim. Your tenure with State Farm is also likely a factor. If you have been there for years and have several products, it is better than the person that signed up a year ago and only has auto insurance.

You may well have a lower uninsured motorist deductible, many states have that deductible at $200 – $250.

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