Is it better to tell your auto insurance company? :
My wife and I were involved in a small accident in a parking lot a few years ago. Our car was not damaged, but the other vehicle sustained about $900 of damage. We were at fault for the accident and filed a claim with our insurance company. Despite this being the first accident that we had filed in more than 10 years, our monthly premium increased by $10 approximately 8 months later. I complained to my auto insurance company. They told me that I had filed a claim for more than $800 so an increase was required.
The military might find the policy of “don’t ask, but don’t tell” a great idea. Should it be applied to auto insurance companies? You can expect higher premiums if you tell. It wasn’t huge in my case, but it was the main issue. There were no claims for 10 years. Sometimes you can pay the damages yourself. But what is the threshold to file a claim and pay on your own? What should you tell your auto insurance company not to do?
You can have your door painted every time someone bangs on it. However, your auto insurance company may raise your rates. Your policy could be cancelled at the next renewal depending on how many claims you have filed and the amount of your payouts. Like homeowner’s insurance. Each time you file a claim it will be added to your transferable record. Auto insurance companies employ hundreds of gossipy aunts to share information with one another. They do share information about their clients, it’s a fact. You cannot switch companies to avoid paying for a complete claim. Nonpayment of your auto insurance will result in you being stuck with high-risk coverage for three years. This sounds like a problem. This could be a problem, but for the moment, most body shops will not contact your auto insurer if your car is taken in by you.
Here are some steps to help you decide what to do.
If you don’t know if you should file a claim for some damage or not, take the vehicle to a shop to see how much it will cost. You can pay for repairs yourself if the cost is lower than or slightly higher than your deductible. Experts say you can save significant money on your auto insurance simply by raising your deductible.
Your collision and comprehensive deductibles. This will reduce your monthly premiums. You could save the money in your savings account for when you need it.
WARNING! WARNING! DANGER! DANGER! DANGER!
Report an accident with another vehicle immediately to the police and your insurance company. Even if no one is injured, it’s likely that someone else will file. Guess which story will be believed if he is the only one who files.
You can bet that if two cars are involved, one will file an insurance claim. Make sure you file your report first. To support your claim, get the names and addresses any witnesses. Take note of the time, day, road conditions and exact description of both cars. It’s amazing how damaging a rear bumper can do to a car’s right front bumper, even if it’s not noted.
Sometimes, it is best to not report a minor incident. You won’t receive anything if the damage is not greater than your deductible. Report any damage done to another vehicle or property, even if it is worse.
