Help me out here--car insurance and totaling

Here is the situation, which in my opinion my father in law berked up for us.

About a month ago, my wife was in a fender bender in her car, which is owned by her father. (We've tried to buy it and give it back and he had a hissy fit every time). He won't go make a claim because it will raise their rates (his insurance, since it was cheaper that way and we just got married--that was planned to be changed come January, before the accident).

The estimate has come back. It is 50% of the cars undamaged value, if not more.

Is there any logical reason not to go through insurance and total it out? I can't think of one. He just keeps telling me the same thing, which I do not understand. Even if it raises their rates, my wife is off that insurance anyways. I do not know what the deductible is, but it can't be the value of the car.

This is in Illinois if it matters.

What is the background on the fender bender and why was she driving? I know there is more to the story that needs explanation before condemning family for stupid stuff.

I have a feeling he is underinsured, has some stupid unauthorized driver clause, or just has liability and property damage coverage.

I doubt he has liability only.

She was driving home from work and rear ended someone. She is the primary driver for that vehicle.

I definitely understand not wanting insurance premiums to go up (and in many cases I believe an at fault claim will absolutely do that - you may see an offset for removing a car and driver, but that's a separate issue).

Totally guessing:

• car value = 5k
• repair estimate = 2.5k
• deductable = 1k
• monthly increase to premium = $20

Essentially you are getting a $1500 'benefit' from filing the claim, but will eat that $1500 up in 75 months back to insurance. He might continue to pay higher premiums for just about forever, so it could conceivably cost him MUCH more than $1500.

Or he might not have to pay higher premiums after she is off the insurance. And I'm sure no one you could actually call and talk to at an insurance company knows that answer. I guess if it doesn't increase HIS rates, it will increase HERS, and therefore since you both probably have a lot of life left, it may be better to just pay out of pocket (or just not worry about the bumper and drive the stinking vehicle) rather than pay higher monthly for a long long time.

I was under the impression that accidents are associated with the driver, and negatively impact rates for that driver for 3-5 years. But I'm not an insurance guru and did not stay at a Holiday Inn last night.

His rates may go up, or they may not.

On the other hand if he never makes a claim, he's just tossing away all that money he pays for the premiums.

If she rear-ended someone - the other driver has almost certainly notified your FIL's insurance company, so it's not like a secret the accident happened, who was driving and liability attached. Sometimes the strings of family financial entanglement aren't worth the benefit.

It depends really, I know my parents insurance rates are higher thanks to the numerous accidents my sister racked up before we managed to marry her off......and a condition of my own insurance is that she isn't allowed to operate one of my vehicles(The latter was prompted because of my mailing address still being at my parents)

Could be a lot of reasons, many of which are already discussed. A lot of times it's just a personal decision, or worse yet just a family issue.

What about just buying another car yourselves and giving broken car back to FIL? Sounds like you're ready to move on from both the car and his involvement in your finances, so perhaps this is the cleanest exit strategy.

Furious_E wrote: What about just buying another car yourselves and giving broken car back to FIL? Sounds like you're ready to move on from both the car and his involvement in your finances, so perhaps this is the cleanest exit strategy.

Because then we're giving him a broken car back. While it is impossible to return a car in better shape than when you got it after 10 years and 100k miles, I'd rather not give it back to him with significant damage.

But yeah, we're done with it one way or the other. Been trying to give it back for a while now.