When You Should File Your Claim

Your car insurance company wants to know about every accident, no matter how small, that you get into. It is certainly legal to not report a claim after an accident, which may be preferable if the cost of the repair is less than your deductible, so that you may keep your claims record clean, however there are several reasons to report your accidents.

Insurance companies are not just looking for ways to raise your rates, by asking you to report even small accidents they are protecting themselves from insurance fraud. If you fail to claim small accidents, your insurer runs the risk of having damage from previous incidences appear on the claim for a more serious accident. For this reason, insurers allow you to report damage without making a claim, so that your premiums will not be affected. By reporting small accidents, you are helping insurance companies have a more accurate statistical picture, which helps them determine rates for their premiums.

If you choose to have a higher deductible to lower the cost of your premium, it means that you are more likely to cover your own expenses in a small accident that does not cost more than the deductible. It is important to know your state and insurer's policy regarding non-renewal. If your driving record is tarnished, filing a claim may put you at risk for non-renewal, and it is wiser to cover the repair costs yourself.

But beware, if there is any risk of injury at all, it is by far wiser to report the accident. This includes anyone in another car involved in the accident or even a passenger in your own car. Injuries are often not apparent at the scene of the accident, and it is essential that you are prepared in the event that someone files a claim against you down the road. Reporting accidents involving other people can also protect you in the case that charges are being brought against you. These types of accidents can be assessed by the police, who can determine blame, innocence, and neutrality for everyone involved. The police report also provides your insurance company with accurate information regarding the accident.

Be careful against hoarding comprehensive claims. Your insurance provider will look at each claim to make sure that the cost of repair is not excessive given the nature of the claim.

Car insurance companies have been moving towards tighter restrictions and more cases of non-renewal. Your insurance claims are shared from one company to another, and often claims can make it difficult to find affordable insurance if you change providers. While this may make smaller claims unnecessary, your insurance policy is there to pay in the event of a more costly accident. If you do not file a claim, your insurance company does not pay you any money.

Insurance companies have also made it clear that your rates will not necessarily go up after each claim. For each claim the company will consider your overall history, the circumstances of the accident, and other factors that will determine whether or not your rate should change. Some companies even offer a first-claim waver or a waver for your first moving violation. Still, state insurance departments have found that insurance companies are non-renewing at a greater rate, cutting the higher risk drivers to cost their own expenses. It is even possible that a company, upon receiving a claim in which you were not at fault, will be able to resurrect previous at-fault claims as ground for non-renewal.

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