Insurance is an important commodity in the case of an extreme disaster, and it is smart to be prepared. However, sometimes filing an insurance claim will not help you save money. Here are the six times you should NOT file an automobile insurance claim:
1. Your repairs are cheaper than your deductible.
A deductible is an out-of-pocket price you have to pay for damages incurred on your vehicle that your provider will not cover. For example, if your deductible is $500 and your damages total at $600, your provider would only cover $100 of your damages. If your damages totaled at $400, your insurer would not cover anything. If you filed a minor damage, your monthly premiums could still go up. This is when you should not file with your provider.
2. You have filed a claim recently.
The average person, according to wisebread.com, files a claim every ten years. If you have filed a claim recently, your monthly rates could increase significantly by filing another, no matter how small the damages.
3. There is no injuries and no accident report.
For car insurance, a small claim could increase your rates for years. If the accident was not serious, and there was no accident report or injuries, there is no need to file a claim. Otherwise, your rates could skyrocket. It would be cheaper for you pay for the damages yourself than to notify your insurance company. However, if there is an accident report, your provider will most likely find out about the accident regardless as to whether or not you report it.
4. There will be no lawsuit.
Insurance companies are there to help if someone decides to file suit. However, if the other party involved in a collision does not plan to file suit, there is no need to get the insurance company involved. It would be cheaper for you to pay someone directly for their damages.
5. You have money in savings.
If the damages incurred are small, and you have money in savings or an emergency fund, it would be smarter to use that money than to involve the insurance company. This will prevent you from receiving higher premiums.
6. Be cautious when asking questions.
Some providers are required to report "inquiries" you make when discussing your coverage. An inquiry you make about your coverage could raise suspicion and cause your rates to be increased.
Review your policy to see if you should contact your insurance company about damages your vehicle obtains. You can also ask your agent if it is mandatory for them to report inquiries.