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You pay a sizable monthly sum to your auto insurance provider. So when you have an accident, it is a good idea to contact insurance and have them fix it. Right? Not always. Because declaring an accident will cause your monthly premium to go up, it may be a good idea to pay for inexpensive repairs yourself.

A redditor recently posed an interesting scenario to the /r/autos forum. He says his wife struck a concrete pillar in a parking lot with the back of their newish (2021) car. He shared a photo of the damage to the rear bumper and fender. Then he explained that a nearby repair shop estimated it could fix the damage for $1200. Finally he admitted his deductible was $500 and asked whether he should contact insurance or pay for the repair himself.

Obviously, there is no way to know what the right solution is for another person’s situation. Some car owners don’t have $1200 lying around for a repair. Others may have already had accidents and be paying a high monthly premium. But most redditors who offered advice felt this man should pay out of pocket.

Cars damaged by accident before insurance claim.
Car accident | Bilanol via iStockPhoto

The long and short of it is that he would be paying the $500 deductible no matter what. So was that $700 difference worth declaring an accident. Almost certainly not. If the first accident increased his monthly premium just $60, he’d be out $700 in one year. If his premium stayed high for two years, he’d be down $1,400. That’s a lot of money he could have saved by paying for the repairs out of pocket.

This situation is relatively unique in that no other cars were involved. So the cost of repairs was especially low. Even so, many commenters questioned whether $1,200 was an accurate estimate. They asked whether their was any damage to the car’s suspension. Several recommended the original poster get a second opinion. It would be a shame to go with the first shop, only to have them overshoot the estimate.

So would it be better to contact your auto insurance or repair your car yourself? The answer will depend on your unique circumstances. But know that using your insurance will cause your premiums to rise, so consider paying for inexpensive repairs out of pocket.

Next, find out how much insurance might go up after an accident in the video below:

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Henry Cesari

Henry Cesari joined MotorBiscuit in 2021 and brings his deep interest in vintage cars, trucks, and motorcycles to the site. Having restored his first classic car at just 16 years old, Henry has wrenched on everything from overland campers to Japanese motorcycles and even pre-war Bugattis. Henry is also an avid attendee at local car shows and genuinely enjoys connecting with fellow auto enthusiasts.

Henry earned a Bachelor’s in Anthropology and English from the University of Vermont. He has since incorporated his love of the written word with his admiration of classic cars. While Henry is interested in vintage cars, he believes the golden age of cars is yet to come. He is confident journalists will play an important role in this revolution by exposing the industry as it is now and envisioning its possible future.