Financial Channel

I caused a door ding to the other party's vehicle of 1/2006. The other party in the vehicle did not get out of her vehicle to inspect the door ding. She asked me if it was bad and I said its a small ding. She said that its ok and went on her way never looking at the door ding. 6 months later I receive a letter from an arbratator saying I owe $716 and need my insurance info.

What recourse do I have now? I do not think it was $716 to fix it. There were other dings (I saw) which she probably claimed it to have it fixed as well. There were no witnesses or police report. She just took down my license plate #. I have mercury and she as AAA so I do not know how the insurance companies will handle this. I do not yet want to admit anything to my insurance company because then I am admitting guilt but its hard to admit that I only caused the one small ding and not the larger ding a few feet away. Dont want my rates to go up as well since its already $3000 a year for my family and 3 cars.

My response:

By reporting this matter to your insurance company, you are not admitting "fault." Rather, you are merely informing your insurance company that there is a claim being proferred against you. Let your insurance company adjuster obtain the necessary proof that you were, in fact, the person who caused the damages, and damages amount.

IAAL

In my experience, most insurance companies are going to just pay the claim out as it is a small amount and it's less costly for them to pay the $716, than to defend you. This would then be reported as an at fault claim and could possibly cause your rates to increase.

I would recommend paying the claim out of pocket if that's possible for you and make sure that you have the other party sign a letter stating that they will not pUrsue you for any further damages.

Unfortunately, this will probably just be a lesson learned. If something small like this happens again where you are at fault, pay out of pocket and have them sign a letter stating they will not pursue you for any further damages. This will end up being cheaper for you in the long run rather than risking an increase in your insurance premium.