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When to file an auto insurance claim and when not to

By HUB SmartCoverage Team on October 17th, 2018

If you find yourself in an accident, car insurance is on hand to help cover the costs incurred. Often car insurance providers frequently tell customers they must report even the most minor accident, however this isn’t necessarily the best advice. In fact, there are some circumstances when not filing a claim could be your best bet. This is because if you file too many claims, or the wrong kind of claim, you could see your premium go up or your coverage dropped. Even something as small as enquiring about filing a claim could affect your rates.

When should I file an auto insurance claim?

There are some situations where not filing a claim could be risky, and may even result in huge bills for repairs or hospital stays. If you were involved in a two-car crash where the other driver suffered an injury, or both cars were significantly damaged, you should always file a claim. You probably won’t have much of a choice in this instance anyway, as the other driver will likely file a claim regardless of your decision.

Similarly if you or your passenger suffer an injury, you should file a claim, since medical costs associated with an accident often add up.

In some incidents it is difficult to determine who is at-fault. In these situations you will need to file a claim so that your insurer can represent you. They will work with the other party’s insurer, using all evidence from the scene, to decide who is responsible.

In the worst case scenario, you might end up with a  total or significant loss after an incident. If this is you, then it’s time to file a claim with your insurer. Often it is cheaper to file a claim than it is to try and cover the cost yourself.

When should I not to file an auto insurance claim?

There’s  no easy way to decide whether a claim is absolutely necessary or not, however the best way to approach the situation is to think about what the insurance will help with. Insurance is there to protect you from unaffordable costs-whether they are related to a damaged car, hospital treatment or even legal costs. If you have a good, affordable policy then you want to hold onto this, and not turn your insurer off, so if the incident is minor and the damage affordable, then it’s a good idea to try solve it yourself.

If you’re in a single-car accident that involves less than $1,000 damage, it might be best not to file a claim. For example, if you bump into a wall or pole while parking and put a minor dent in your car.

If you are involved in an incident with another driver where you are at-fault, and the damage is minor, then you can reach an agreement with the other driver where you will cover the cost of damage personally. In this situation, however, there is no guarantee the other driver won’t reach to an insurer individually- that could cost you. If you do reach an agreement it is vital you get an estimate for repair costs as soon as possible; in a situation where you have underestimated the cost you want to be able to contact your insurer as soon as possible.

It can be a little trickier if you find yourself in an incident and the other driver is at fault.  If you trust that the other driver will cover the cost of your repairs, you might consider not filing a claim. Surprisingly, even if you are not at fault in an accident, filing a claim will go on your record and can raise your insurance costs.

If you do decide to file a claim it is vital you do so as quickly as possible. Make sure you have collected all information and evidence from the scene to support your claim.

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