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Will Claims Raise My Insurance Rate | Should I File a Claim |
These are the common questions that often will come up. Should I file a claim? Will filing a claim raise my rates? If you have glass coverage and experience a crack to your windshield you will need to make a claim before the Insurer will pay for the installation of a new windshield (assuming you have full glass coverage).
Now in many cases I have found small minor claims like this not to effect your premium or the effect to be minimal. However, every company is different. Now if you file a claim for several $1,000 for damage you caused to your own or another’s vehicle, you most definately will see an increase in your rate. As insured motorists file claims they’re helping the Insurer learn more about your risk level. The more claims filed, the higher the risk.
What if the accident was not my fault?
If the accident was not your fault and the fault of another Driver, their insurance should cover your loss. If that person has no insurance you can have your own insurance company pay for the damage who will then subrograte against the other Driver. You should not experience an increase if the accident was not-at-fault. A great thing to keep on file is documentation stating the fault and other details of the non-fault accident.
What if My Car is Vandalized?
With this type situation, vandalism claim causing an increase in premium will depend on the company. It’s not your fault your vehicle was vandalized and you shouldn’t have to pay more for insurance due to someone elses destructive actions. That’s my opinion. However, some companies may question why your car was where it sat when the vandalism occured. Was it parked on the street? If so that would pose a higher risk compared to if the vehicle owner parked the car in the garage or carport. Was it sitting at an address that you currently reside even though the Insurance company has it on file that you live elsewhere? Sometimes with vandalism these types of questions will come up.
Should I file a Claim?
Claims are never a fun experience. Claims will also put a 3 to 5 year mark on your clue report which is used by all insurance companies to determine your rate. If the damage is minor it’s best to repair it without getting the insurance company involved. I personally will not consider filing a claim if the damage is less than twice or even three times the deductible amount (depending on the deductible).
If the damage is $1000 and my deductible is $500, if I have the money i’ll pay for the loss myself. If a claim will stay on my record for up to five years and my premium is increased by $300 every year what will I end up paying of the next five years?
$300 a year X 5 years = $1,500 not to mention the initial deductible ($500).
So all together I paid out $2000 over five years for my insurance company to fix my $1,000 loss or damage. Now if you have a major loss I would file a claim. For any loss I cannot handle, I’ll file a claim, that’s the whole purpose of auto insurance.
Claims are filed for several different reasons. Below are a few claims common to the auto insurance industry.
- Damage to your vehicle or another vehicle you collide with.
- Medical payments for injuries caused to passengers or other drivers.
- Other damages and/or lost wages due to an occurance.
If you would like to learn more about insurance discounts or would like to comparison shop your insurance needs visit our auto insurance section today.