You should know When not to File a Car Insurance Claim to prevent your premium rates from being increased or your policy getting terminated. This topic becomes important when a property covered by your insurance policy gets damaged or lost.In this article, you will get the important points you need to take note of before you proceed to file an auto insurance claim.
When not to File a Car Insurance Claim
One of the main reasons for buying insurance is to prepare for unexpected losses. When you buy insurance, you pay a premium in exchange for the services that will be offered by the insurance company to you.
What your insurance policy covers could be your health, home, Vehicle, business, etc. When you have your vehicle insured, it is known as car or auto insurance.
It’s not worth filing a car insurance claim when the damage is less than the deductible charged by your insurance company. A deductible is simply a sum of money that you pay from your pocket before your insurer gives you compensation for a loss or damage that your policy covers.
If an accident occurs, you may have to cover the damages yourself if it is below the deductible. This is because of what may happen after your claim is filed.
Will my Insurance Go Up If I File a Claim?
Your insurance rates may go up when you file a claim and this depends on your insurance company. Your driving history is taken into account when you get your car policy. The more driving threat you have demonstrated in the past, the more you might have to pay as a premium.
So, it makes sense that your insurer might increase your rates after claims or other driving incidents that are primarily your fault occur.
Filing frequent claims is also a red flag for most insurance companies. This can also lead to them withdrawing the policy of the policyholder. With this, it’s very important you avoid filing claims frequently.
When to File a Car Insurance Claim
If your car was the only one involved in the accident, filing a claim is not necessary. For instance, if you ran into a pole on the street, you can repair the damage out of your pocket. However, there are some cases that may require you to file an auto insurance claim.
If the accident has caused serious damage to the other driver’s car, you can file an auto claim. Also, getting others injured in an accident is a good reason to file a claim with your insurance company. You can still file a claim if you are the only one involved in an accident when you have collision coverage.
Should I Get an Estimate Before Filing a Claim?
It is very important for you to get an estimate of the repair cost before you file an auto insurance claim. This is because the repair estimate may be an amount you can cover on your own.
Considering the deductible, you will be required to pay, it’s very important to get a claim to determine if filing the claim is worth it.
Should I File an Insurance Claim if I am at Fault?
If you were involved in an accident caused by you, it’s important you contact your insurance company and report the incident. Although your premium will be increased, you should let your insurer know when you are involved in an accident.
When it comes to assessing your driving record for the purposes of changing your insurance rates, it varies from company to company.
In general, when you make a claim with your insurance company above a given amount, your rates will be raised. This is done especially if the accident is primarily your fault.