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When You Shouldn’t File a Car Insurance Claim

Written by Jimmy Rustling

Filing a claim after a car accident is usually the route you take. However, in some cases, you may want to weigh your options before filing. Why? Well, insurance claims often result in a premium increase, which most of us want to avoid.

In a 2017 report, it says that a claim of just $2,000 could raise a driver’s insurance rate as much as 45%. And, if you file a second claim within a year, you could see a rise as much as 99%. Seeing your insurance rate increased is determined by a number of variables, including who was at fault, the size of the claim, and whether or not you’ve had more claims in the same year.

This is why it is not always a good move to file a claim when you are involved in a car accident, but it is mandatory that you have a car insurance especially sr22 insurance tennessee for high risk drivers. In some instances, it’s preferable to avoid filing a claim.

Single-Car Accidents With Minor Vehicle Damage

When you are the only one involved in a car accident, choosing whether you should submit a claim is simple. If the damage to your vehicle is not even $1,000, you can save money by paying for the repairs yourself and avoid an increase to your insurance.

When Your Claim Is Equal to or Less than the Deductible

It’s pointless to file a claim if the claim amount is equal to or less than your insurance deductible. Most policies include a deductible, which is an amount that you must pay before you are covered. So, it makes sense to pay for repairs on your vehicle yourself if it is minor. This also applies to repairs that may exceed the deductible amount to avoid a negative impact on your rates in the future.

When an Insurance Rate Hike is More Expensive than Paying For Your Own Repairs

After your insurance company evaluates the damage to your car, you should ask them if it will impact your current premium and if it will increase. A rate hike may end up being more expensive than you paying for repairs on your own.

If you are at fault, an insurance increase costs about $2,000 over three years, on average. This is because claims remain in your insurance history for up to five years. So, it’s a good idea to really weigh your options before filing a claim.

Minor Accidents That Both Parties Handle Privately

For those involved in minor car accidents with another party, you may be able to agree to handle the issue privately and pay for repairs on your own. If the situation is reversed and the at fault party proposes a similar agreement, proceed with caution.

Sometimes the responsible party may attempt to avoid being held liable for damages. It may backfire, so tread lightly before going this route.

You’re Not Worried About The Appearance of your Vehicle

If you have an older vehicle and are unconcerned about its appearance, maybe you don’t fix it at all? As long as it runs and passes inspection, you can always just leave the cosmetic damage and continue to drive it. This can save you money.

Things to Think About

There’s also “no-fault states”. Most insurance companies will not raise your rate if the accident isn’t your fault. If you reside in a no-fault state, however, even if the accident was not your fault, your insurance premium may rise.

If you were involved in a serious accident, it should be reported. After an accident in which someone was injured or the damages were significant, it’s usually advisable to submit a police report and notify the insurance. This helps to prevent a difficult (and possibly expensive) scenario if the other party refuses to accept responsibility for their share of the damages.

If there are any injuries, you should always submit a claim. You should submit a claim if you or your passengers are injured, even if it is small. It’s difficult to estimate how much it will cost, so you may want to consult with a car accident lawyer to help advise you.

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About the author

Jimmy Rustling

Born at an early age, Jimmy Rustling has found solace and comfort knowing that his humble actions have made this multiverse a better place for every man, woman and child ever known to exist. Dr. Jimmy Rustling has won many awards for excellence in writing including fourteen Peabody awards and a handful of Pulitzer Prizes. When Jimmies are not being Rustled the kind Dr. enjoys being an amazing husband to his beautiful, soulmate; Anastasia, a Russian mail order bride of almost 2 months. Dr. Rustling also spends 12-15 hours each day teaching their adopted 8-year-old Syrian refugee daughter how to read and write.