Common Scenarios When You Should Avoid Filing an Auto Insurance Claim

Nov 17, 2021

Auto Insurance

Common Scenarios When You Should Avoid Filing an Auto Insurance Claim

Operating a vehicle comes with a lot of risks. Accidents are bound to happen. If you have auto insurance, you can rely on your policy to cover any damage to your vehicle. However, there are some cases when filing a claim is not the ideal solution.

Recent data regarding the auto insurance industry shows that total loss costs due to collision claims continue to rise. Loss costs refer to the dollar amount of claims per vehicle in a specific year. It is generally accepted that you should contact your insurer to start the claims process as soon as you are involved in an accident with another vehicle. However, rising auto insurance claim costs may cause you to reassess things. Here are some examples where it may not benefit you to file an auto insurance claim.

  • Damages Are Lower Than Your Deductible

    Your deductible is the amount of money that you are expected to pay out of pocket before your insurance company covers any damage to your vehicle. If you are involved in a minor accident, it may not benefit you to file a claim. Perhaps you didn't damage anyone's property, and your repair costs are low. In this scenario, try to handle the situation on your own.

  • A Self-accident

    Perhaps you accidentally damaged your vehicle, and no one else was injured. There is no need to contact your insurance company. You are unlikely to be reimbursed, and filing a claim may actually cause your auto insurance premiums to rise.

Other Things to Consider

Try to save your claim for when more serious issues. Maybe a drunk driver hit your car and totaled it. Perhaps you were distracted, and your vehicle collides with a building causing significant damage. In such a case, you can rely on your auto insurance. You will want to avoid filing a claim when you will receive minimal assistance toward your repair costs.

  • The Claims Process Once you have started the process of filing a claim, it's important to be transparent. Try to assist with the process by filing a police report and answering any questions. Stay patient throughout the process. There are multiple reasons why a claim may be held up. Do not take any financial action on your own regarding the other party. Paying the other party instead of going through the claims process can make it difficult for your auto insurance provider to reimburse you if something goes wrong. Contact your insurance company as soon as possible if you are involved in a serious accident.

Consult with John E. Peakes Insurance Agency

Make sure that you read your auto insurance policy carefully. Learn about your obligations regarding accidents before you start the process of filing a claim. If you have any questions about auto insurance claims, contact the team here at John E. Peakes Insurance Agency, and we will assist you and ensure that you are protected in every scenario.