Submitting your claim to the auto insurance company may not always be a wise move. Sometimes it is better not to submit your claims, while during the other times you have to, whether you feel the need or not.
The first question is, “When is it better not to inform your auto insurance company
To quote an example, if you get into an accident in a parking lot, it may not necessarily damage your vehicle. Imagine that it damaged the other to an extent of $900, while your claim had to be limited to $800. To make good the loss, the insurance company may charge you with an additional $10 every month for the next eight months.
Typically, informing the auto insurance company of the claim will trigger higher premiums. The amount to be paid as monthly premium may turn out to be higher in other circumstances where the claim submission is higher. It is, therefore, inevitable to identify the circumstances wherein it is a safer option to inform the auto insurance company of the damage and when not to.
If you plan to contact the insurance company every time you make a minor scratch that is to be repainted, be prepared for an increase in the premium. This varies with the number of claims submitted by you and the amount of the claim. It determines the decision of the auto insurance company as to whether to renew your policy at the next renewal period. The auto insurance companies appoint ‘spies’ to gather information about each other’s clients. It makes it impossible for you to switch companies to avoid being charged for a comprehensive claim. Any non-payment or lapse from your side will place you in the high-risk category for three years.
So, let us examine how to determine whether it is safer to file a claim or not. In the emergence of dents take it to a body shop and see what it would cost. For an amount less than or slightly more than your deductible, make the payment out of your pocket. Few are of the opinion that one can save on auto insurance by raising the collision and comprehensive deductibles as it pulls down the monthly premiums.
However, there exist circumstances that require you to inform the police and the auto insurance company even when the damage is minor. You have to provide minute details including the names and addresses of the witnesses to the incident. This is to shield you from unfair payment of damages for which you are not responsible. There have been many instances wherein the other party files for damages claiming dent to the rear of the car when you might have smashed the front bumper.
To conclude, scrutinize the situation and the cost involved before filing the submission. For damages less than the deductible, make the payment yourself. But where another car is involved, or there is damage to another’s property, make sure that you are the first to file a report to the insurance company to eliminate the chances for unfair claims.