Pay Out of Pocket or File a Car Insurance Claim? A Guide to Handling Minor Accidents

Reviewed By: Ben Cavallo, CIC, AAI, CISR

With more than a decade of experience under her belt, Laura Inglis heads up the C&S Insurance Claims Department.

Uh-oh…you’ve accidentally dented your bumper backing into your garage, or you’ve been in a minor fender bender in your neighborhood. While the damage is minor and repairs aren’t costly, you may be wondering whether it’s better to pay out of pocket or file a car insurance claim. Understanding the costs, potential rate increases, and when insurance is necessary can help you make informed decisions.

The Costs of Filing a Car Insurance Claim

For minor accidents, deciding whether to pay out of pocket or file a car insurance claim can have a big impact on your finances. While insurance can cover medical bills and vehicle damage, paying small repair costs yourself can often save money in the long run.

Small Repairs May Not Exceed Your Deductible

Before filing a claim, check your deductible for comprehensive or collision coverage. If the repair cost is less than your deductible—the amount you pay out of pocket before insurance kicks in—it’s often smarter to handle repairs yourself. If you’re willing to pay more out of pocket, you can increase your deductible to spend less overall on your auto insurance premium.

Claims Can Increase Your Premium

Even if repair costs exceed your deductible, think carefully about whether to pay out of pocket or file a car insurance claim. An at-fault accident on your record can increase premiums—sometimes by 25%—and could make you ineligible for certain discounts.

When Should You Pay Out of Pocket for Small Accidents?

Generally, it’s best to pay out of pocket or file a car insurance claim depending on the accident type. Minor, single-car accidents are usually inexpensive enough to handle without involving insurance, while two-car accidents require more consideration.

Minor Single-Car Accidents

If you bump into a driveway post, scratch your door in a garage, or crack a windshield from a small rock, paying for repairs yourself is often the best option. Filing a claim could unnecessarily raise your rates.

Two-Car Accidents Without Injury

If the other driver is at fault and the damage is minimal, you might be able to agree to cash payment to avoid filing a claim. Deciding whether to pay out of pocket or file a car insurance claim in this situation depends on your trust in the other driver.

How to Decide Between Paying Out of Pocket or Filing a Claim

The choice to pay out of pocket or file a car insurance claim depends on:

Cost of repairs: If costs are low compared with your deductible, paying out of pocket may be best.
Who’s at fault: Fault rules differ by state and affect whether insurance needs to be involved.
Claim frequency: Frequent claims can label you high-risk and raise premiums.

When You Must Report an Accident

Even if you decide to pay out of pocket or file a car insurance claim, some accidents must be reported to the police. In Massachusetts, file a Commonwealth of Massachusetts Operator’s Accident Report if the accident:

Results in injury or death
Causes property damage over $1,000
Involves a vehicle fleeing the scene

Still have questions? Speak to an agent at C&S Insurance today.