If i contact my insurance company, will they increase my rates? 
That is a very good question ! You are kind of between a rock and a hard place . If you contact them , and have a ` safe driver ' bonus , you could lose that , and with the subsequent rate increase , -LRB- if there is no first accident forgiveness plan -RRB- you might well exceed the expense of the repairs . On the other hand , if you do not know the person that she hit wo n't be the type that later claims back injuries or some such thing , and takes you to court -LRB- I 'd wonder about this if he or she documented and/or took pictures , and your wife did n't -RRB- , without the power of your insurance company behind you , you could be in a bigger mess . Another consideration is your deductible - if it 's more than $ 700 , you would end up paying that much anyway , and run the risk of a rate increase . If coming up with $ 700 is an issue , and you have a low deductible , then having the insurance company pay may be an option . Perhaps a good thing to do might be to contact your agent , and tell them you and your wife were talking about what would happen if one of you were to have an accident , and were not sure what would happen if so , and have them explain it to you . If it sounds good , then do it , if it sounds bad , then consider your risks of handling it out of pocket . Personally , I 'd probably call them , and explain it exactly as it happened , and trust my agent to what is best for me . I hope it works out for you , good luck , and thank you for asking ! 