Car insurance is there to help you cover the costs of any damages to your car, but sometimes filing a claim is not worth the potential consequences. The claim you file will show up on your insurance record and it could affect everything from your insurance rates to your good driving history. If you find yourself in the following situations, think twice about filing that claim.
The Repairs are Less Than the Deductible
You will have to pay your deductible regardless of the cost of the repairs. Get some repair quotes before you file the insurance claim. If the repairs will cost less than your deductible, you are better off just handling the repairs without getting the insurance company involved. Filing a claim would not save you any money in this situation, but it would go on your record as damage to the vehicle and potentially raise your risk level with the insurance company. If possible, wait to file claims with your insurance company when the damage is extensive and the deductible would only be a mere fraction of the overall repair costs.
The Other Party is at Fault
If you've been involved in an accident that was someone else's fault, you should not need to file a claim with your insurance company unless the other driver is uninsured. It's a good idea to let your insurance company know about the accident so that they are aware that the other party's insurance company might try to contact them for information, but be careful not to file a claim unless you need help from your insurance company to cover the damages. Your insurance agent can be an ally in your attempt to recover damages from the other insurance company without you having to file a claim requesting financial assistance through your insurance company.
The Damage is Insignificant
Scratches and dents are part of the risk of driving a car daily. They can mess up the car's cosmetic appeal, but they're not serious enough to harm the car's ability to drive. Most dents and scratches cost less to repair than a typical car insurance deductible, so it is simpler to pay out of pocket for the repairs without involving the insurance company. Some dents can even be fixed with do-it-yourself dent kits, but make sure you are comfortable with the procedure so that you don't make the dent worse by trying to fix it on your own. Filing an insurance claim could cause your rates to go up or even make it harder to find insurance in the future. If the damage isn't vital to the car's performance or safety, there's probably no need to file a claim.
You Want to Keep Your Safe Driving Discount
Many insurance companies offer special discounts to customers who maintain a clean driving record for a certain period of time. Filing any claim can cause that discount to go away. Before you file, compare the increase in your rates after losing the discount against the cost of paying for the repair work on your own. Sometimes the penalties for filing a claim are more expensive than the damage you needed to repair in the first place.
It's a tough decision to make in some cases. Only use your insurance if you have to. That's your best chance at avoiding higher rates when you go to compare car insurance rates at renewal time.
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