Should You File an Auto Claim After Any Accident?

 

Unfortunately, car accidents can happen at any time and in any place. Obviously, this is why it is critical to have the proper type of protective car insurance. However, filing an auto claim is not always the best option.

Here's an example.

A woman drove through a busy intersection. She was startled to see a car approaching at that time. Her car was only scratched slightly. Nonetheless, it tarnished the otherwise flawless exterior.

Naturally, she demanded restitution. The other driver wanted to talk about how he could pay out of pocket to avoid filing an auto insurance claim. Because the damage was minor, she agreed to this method of compensation, assuring the at-fault driver that she would not notify her insurance company.

The other driver was aware that the deductible was roughly equal to the total repair costs for the car he had scratched. He was also aware that filing an auto claim would almost certainly result in an increase in his insurance rates. Negotiating with the other driver to pay for damages without involving insurance companies ensures that his premium will not be affected by the accident.

Most would agree that this was a smart move.

In the vast majority of cases, such as the one described above, it is far preferable to send out payment to repair damages rather than report the incident to the insurance company.

Here's a look at what happens when an insurance company gets involved.

Insurance companies use complex calculations to determine how much you should pay for auto insurance.

Multiple claim filings are one of the many factors that can cause your premiums to rise. In fact, even filing a claim incorrectly may result in your rates increasing or being cancelled - not to mention if you've accumulated violations on your driving record!

It's also worth noting that even a simple conversation about an accident, even if you don't end up filing a claim, can cause your rates to rise. Many insurance companies require their employees to report any potential claims.

So, if you are involved in an incident similar to the one described at the beginning of this article, you may want to consider following the procedure described there and simply paying up front without involving the insurance company.

 

Of course, there is always the possibility that the other driver will discover additional damage or even injuries later on. There's a good chance you won't be covered for any resulting lawsuits if you don't file your claim on time.

Bottom line: if you are confident that this is a minor issue, going it alone may be in your best interests. If you have any doubts, experts advise you to contact your insurance company!

 

An experienced independent agency will be able to provide more information.

Author: RabnawazToor