Slavsky

To file or not to file - that is the question.

I apologize for rephrasing William Shakespeare, but it is really a tricky question. There’s no law saying you must do that, although insurance companies want to be informed about even the smallest accidents.

Filing a small claim (especially if you are at fault) may increase the rates of your auto insurance. I mean, how good is your driving record, maybe you’ve got a speeding ticket from some time ago, or ran a red light? In this case it might be cheaper to pay for the accident yourself instead of having your rates grow twice or three times more for the next couple of years.

What is considered a small accident? Hitting your garage door - is probably ideal! From financial point of view it is minor when the repairs cost less than your deductibles. But you got to be wise and consider the odds. If there was another car involved or any (even the smallest) injury - file the claim. You should notify your auto insurance company first and tell them your version of the “story”, before another party files a claim against you. Otherwise your insurer may refuse to pay to defend you. And you definitely want to be prepared for anything.

Do not underestimate the prices to fix cars either. Just a bumper can really affect your or (if you are not at fault) another person’s wallet. So, be careful if you did not cause an accident too, not everybody is carrying insurance.

It’s important to check with your auto insurance provider regardless their non-renewal policy. Some insurers may drop you as a client after filing only two claims. If you do have a poor driving history it makes sense to pay the claim yourself to avoid the risk of non-renewal.

As you see, it is completely up to you, which way to go. But remember, that insurance is there to protect you and be on your side. If accident happens, call your agent and ask his advice on your case. If you decide not to file the claim and take care of everything yourself, at least the insurance company will be aware of what’s going on if someone goes against you.