Is It Cheaper Not to File a Car Insurance Claim?

If you've been in a car accident recently, you've probably been wondering what to do about your car insurance claim. A lot drivers are concerned with making claims on their policies because of what it might do to their premium rates. It's true that making a claim against your policy can sometimes cause a premium amount change, but this isn't always the case. All insurance companies are going to look at claims differently and have a set of rules that they follow when it comes the issue of premiums.

A lot of car insurance companies will actually lay out what their policies are about increased premiums and accidents. This is something that you should look for or ask about before you decide to purchase a policy. If you have this information beforehand, you're going to know exactly what is going to cause a hike in your rates. It will make it easier on you to decide whether or not it's a good idea to file a claim after you have an accident. You'll be better able to evaluate the long term costs associated with filing a claim and not just the up front costs.

Weighing the Costs

If you've been involved in a car crash, you may be thinking about whether it's a good idea to make a claim and have your insurance company handle the bills or to try and cover the costs on your own. When trying to decide which of these options is cheaper you really need to consider both the short term costs as well as the long term costs. If you don't think of the situation in this way, then you could be in for some financial trouble later on down the road.

In the short term, you need to consider what is going to be the cheapest option: filing a claim with your insurance company or paying for the repairs to your vehicle yourself. To figure this out, you need to consider what your deductible is for the coverage that you are trying to make a claim on is. If you discover that your deductible is $750 but the repairs to your car will only cost $500, then your cheapest bet is going to be paying for the repairs to get fixed out of your own pocket. If, however, the repairs are going to cost a lot more than your deductible, it's a good idea to go with your claim instead.

When you begin to think about what is going to be the cheapest thing in the long run, this is where things can get a bit trickier. Making a claim on your car insurance policy could actually cost you a lot of money in the future, depending on what kind of accident you were in and how much the insurance company is going to have to pay out. If you have caused an accident that requires your provider to pay out a lot of money, then the odds are that your premiums are going to go up. When you add this cost up, it could come out to a lot more.

Making a Decision

Once you look into and determine whether or not making a claim will have an effect on your premiums, then you will be better prepared to make a decision. Sometimes it is cheaper not to file a claim and to pay for repairs to your vehicle on your own, even if it costs just as much or a little more than it would to make a claim on your policy. That way, you can ensure stable premiums.

Compare Car Insurance Quotes