Before you decide to make a car insurance claim with your auto insurance company, there are a few things you should consider. While you are required by law to be covered by auto insurance in order to drive, you not have to report accidents to your insurance company. All claims with a car insurance company go on your permanent record, and the more claims you make, the more your premium will go up. This means that it is sometimes better to just pay for damages yourself than to report the accident to your auto insurance company. Here are three things to consider when you are deciding whether or not to file a claim.
Your Deductible Rate
A deductible is a fee that you are required to pay every time you file a claim. If there is only minor damage to your car, it may actually cost less to have it fixed yourself than to pay the deductible. Be aware of your deductible rate so that you can easily determine if it is higher than the cost of paying for repairs yourself.
Past Insurance Claims
If you have made many claims in the past, your premium may rise when you make another claim. The more claims you make, the higher the premium goes, so you may end up paying more over time in premium costs than simply paying for repairs from your own pocket.
Other Vehicles
Generally, you should only opt out of reporting an accident to your insurance company if your car was the only one involved in the crash. If other cars were involved, you will have to contact your insurance company.
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