Think Twice Before Making A Car Insurance Claim

Many of us consider car insurance a burdening financial obligation. But you should realize that it is a very beneficial service, should you be involved in an accident. The purpose of car insurance is to reimburse the policyholder after making a claim. So, it makes sense to fill in a claim after any incident that would cost you money, assuming that you have the right type of coverage. But things are not always as easy as they seem. There are cases when you should think twice before making a claim and try to solve things on your own. We will explain you when and why in this blog. We also recommend you to get quotes and compare auto insurance rates before making claims.

Making a car insurance claim will affect your car insurance rates. There are several variables to consider before making the claim: who is to blame for the accident, your driving and claim history and the severity of the accident.  Reports suggest that drivers who fill in claims end up paying an average of 41 percent more for car insurance. Naturally, drivers who are to blame will see the most drastic costs increase.

Having access to accident forgiveness programs is really helpful, since these programs make sure that prices do not go up after a claim. But this is available only for the first claim.

If you are involved in a minor accident, which ends up with only superficial scratches and dents, you may consider paying the damage from your own pockets. Before choosing this way, we recommend reviewing your insurance policy. It may have a stipulation that you’re required to notify them of any incidents. Plus, there are many legal issues that may occur if another party is involved and it files a claim.

To conclude, if the accident is strictly physical damage (no injuries), you’re at fault and you can afford to pay for the damages and want to avoid a premium increase, then it might make sense for you to take care of it on your own and not make a claim.

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