When to File an Auto Insurance Claim

Many people struggle with the decision of when they should file a claim with their auto insurance provider. There is always the risk of the claim not being worth the raised premiums you would likely have to face afterward, which makes people hesitant to file any claim at all.

However, there are certain times when you should definitely file a claim. Here are some examples:

• You have a big claim to file.  What is considered a “big” claim? It’s relative to your financial situation and what you can afford. If you can fairly easily afford to pay for repairs out of pocket, then it’s a bad idea to file a claim for your insurance. But if you absolutely cannot afford the out-of-pocket cost, then it’s definitely a good time to file a claim with your auto insurance provider. Remember: the point of insurance is to protect you from major financial disasters, not from minor financial inconveniences.

• You haven’t made recent claims.   If you have never made a claim before and are on the edge of whether or not the expense is worth the claim, then you may as well make the claim. There’s a decent chance that filing a single claim will have no effect on your auto insurance premiums. Feel free to talk to your provider for more information about that.

• You have first-time accident forgiveness.   This first-timer stipulation is offered by some auto insurance providers. Sometimes the stipulation includes a footnote that you must have been accident-free for a certain number of years, other times it’s when you are accident free altogether. If you have this feature in your insurance, then it may be a good decision to file a claim.

• Someone was injured in the accident.   If anyone else in the accident could potentially have a legitimate claim to be injured, you will want to file a claim to protect yourself in case that person decides to file a personal injury lawsuit.

• You have had the policy for a long time. Once you have been with an insurance provider for a long time, you are more likely to get some leniency than new customers who have already filed claims.

Consider these factors the next time you need to decide whether to file a claim with your auto insurance provider.