One question our clients frequently ask is, “Should I file a claim or pay out of pocket?”
In most cases, the answer may seem obvious based on the type of accident. However, there are times when the decision isn’t so clear-cut. As insurance advisors, it is our responsibility to provide guidance on whether or not to file a claim.
It’s important to note that the following are simply guidelines to consider when making this decision, as every situation is unique. It is always recommended to consult with your trusted insurance advisor before choosing to pay out of pocket or file a claim.
In general, here are some scenarios to help you determine whether to file a claim or pay out of pocket:
- If someone else was involved in the accident, you should file a claim.
- If no one else was involved in the accident and the damage was less than your deductible, you should not file a claim.
- If no one was involved in the accident and the damage is slightly higher than your deductible, you should not file a claim.
- If you’ve recently filed another at-fault accident, and the damage is minimal, you should not file a claim.
If another driver was responsible for the accident, be sure to file the claim with their insurance if you have their information (always collect their insurance details at the scene of the accident!).
Now, let’s talk about deductibles.
A car insurance deductible refers to the amount you are responsible for paying after filing an approved insurance claim. Your insurance company will cover the rest, up to your coverage limit.
But what about the impact on your insurance rates?
Whether or not your insurance rates increase after filing a claim depends on several factors, including your insurance carrier, the circumstances surrounding the accident, who was at fault, and your accident and claims history.
It’s important to be aware that even filing a claim with $0 payout can have consequences. With stricter guidelines, the frequency of claims can affect your policy. While a $0 claim may not result in a surcharge, it could lead to a non-renewal or difficulty in obtaining coverage with another carrier.
As you can see, there are various factors to consider when dealing with an accident. Before filing a claim, always reach out to your insurance advisor for personalized guidance. They will be able to help you make the best decision based on your specific situation.
Have more questions about claims? Give us a call at (610) 590-0152.
A little more about Blue Marsh Insurance…
When he founded Blue Marsh, Tom Davenport wanted to create a different kind of insurance company. One that’s built on personal relationships and a local presence. One where you, the customer, feel more like a friend.
As an independent insurance agency, Blue Marsh Insurance represents a carefully selected group of financially strong, reputable insurance companies. Therefore, we are able to offer you the best coverage at the most competitive price.
If you’re interested in starting a quote online or having us take a look at your current policies, click here!