Claims often result in premium increases, which most automobile owners dread. A $2,000 claim can result in a 44% rate rise. A second claim within a year can increase your rate by 999%. Whether you’ll see a rate hike depends on criteria like who was at blame in the accident, the size of the claim, and how frequently you’ve filed.
Single-Car Accidents With Minor Vehicle Damage
It’s simple to decide not to make a claim when you’re the only one in an accident. If you hit a pole and the damage is less than $1,000, you may be able to save money by paying for the repairs yourself.
The Deductible Is Less Than The Claim Amount
A claim is useless if the claim amount is equal to or less than the deductible. Most auto insurance policies have a deductible you must pay before coverage kicks in. Paying out of pocket for minor losses is considerably better. Even if the repairs cost little more than the deductible, it’s not worth filing a claim that would be added to your history and affect future premiums.
When Insurance Rate Increase Is More Expensive
If your insurance has inspected your vehicle’s damage, ask how much they plan to raise your rate. A rate increase over several years may end up costing you more than the repairs themselves.
The insurance will boost your rate based on the type of claim you make. An at-fault accident can cost you $2,000 in premiums over three years. Because most claims remain in your record for three to five years, it pays to consider hard before contacting your insurer for repairs.
Minor Squabbles Agreed Privately
If you were in a small car accident and the other party’s car was not damaged, you can agree to pay for the repairs yourself. If the other party is at fault and suggests a plan, proceed with caution.
You Drive An Old Car
Maybe your car is ancient, and you don’t care about its appearance as long as it works and passes inspection. In this scenario, leaving the fender dent could save you money.
Visit our blog section to learn more about when not to file a claim.
