Paying cash instead of going through insurance

civildefence

A question for anyone who is up on insurance matters...

A friend of mine, who is a learner driver, hit a parked car and damaged its bumper. He was only driving at about 10kph at the time. The owners of the car live a few doors away and he called into them and explained. They called the guards out and details were exchanged etc. etc. He offered to get it repaired by a garage where he knows the owner, but they want to get it checked out first themselves.

1. Does he have to go through his insurance or can he opt to pay cash in order to keep his premium from going up?
2. Does he legally have the option of beating the quote they get with the cheaper garage?
3. If the claim is settled by cash, but the insurance company is aware of the accident, can they put his premium up even though he paid himself?
4. Is it better to tell the insurance company even if he wants to pay cash?

Any help is very much appreciated!

Henry Ford III

1. Does he have to go through his insurance or can he opt to pay cash in order to keep his premium from going up? Cash is fine.
2. Does he legally have the option of beating the quote they get with the cheaper garage? He can get a better quote, but the 3rd party must be satisfied with the repair.
3. If the claim is settled by cash, but the insurance company is aware of the accident, can they put his premium up even though he paid himself? No.
4. Is it better to tell the insurance company even if he wants to pay cash? Doesn't make any difference

TheNog

civildefence wrote: »

A question for anyone who is up on insurance matters...

A friend of mine, who is a learner driver, hit a parked car and damaged its bumper. He was only driving at about 10kph at the time. The owners of the car live a few doors away and he called into them and explained. They called the guards out and details were exchanged etc. etc. He offered to get it repaired by a garage where he knows the owner, but they want to get it checked out first themselves.

1. Does he have to go through his insurance or can he opt to pay cash in order to keep his premium from going up?
   
   It really is up to the owner of the other car
   
2. Does he legally have the option of beating the quote they get with the cheaper garage?
   
   Same answer here again
   
3. If the claim is settled by cash, but the insurance company is aware of the accident, can they put his premium up even though he paid himself?
4. Is it better to tell the insurance company even if he wants to pay cash?

Not sure but I suppose his insurance company could consider your friend to be a higher risk

Any help is very much appreciated!

see above in bold

3DataModem

1. Does he have to go through his insurance or can he opt to pay cash in order to keep his premium from going up?

You can do both. You can do it through your insurance, then at the end opt to reimburse the insurance co in cash (without affecting your premium).

This can be helpful.... in my case some guy I hit (parked) sent me a 600 bill which was pretty suspect. I called them up and told them they'd be contacted by my insurance co. They will send inspector to view car and ensure quote is valid etc etc (also means you don't have to deal with it).

Then at the end just ask "how much will claim impact policy premium?"

They are obliged to tell you. You can then choose whether to pay yourself or take premium hit.

civildefence

Many thanks for all your replies, very helpful, cheers