Having insurance is great! It protects you and your loved ones from unexpected incidents that could be very costly. When an incident occurs, having this important and valuable financial tool is essential. However, depending on your situation, it may be more beneficial to not file a claim. Here are some tips to determine whether or not you should file a claim.
A Claim’s Affect On Your Premium
The first thing you should look into is how much the incident will cost you and how it could affect your insurance premium. For example, if you got into a car accident but the damages were minor and no bodily injury occurred, you may be better off not filing a claim with your auto insurance. You may risk your insurer increasing your premium and/or not covering the cost.
Consider Damages When Determining Whether to File
If the damages cost less than or equal to your deductible, filing a claim is not ideal as you would still be paying the full cost of damages yourself – your insurance deductible. Who is at fault for the incident can also determine whether or not your insurance premium could increase. For example, if you were not at fault, it may be better to not file at all and save yourself the money.
You should also look at the situation’s big picture – is it worth the hassle? For example, if you are driving an older vehicle and do not care much about its appearance, filing a claim for a minor dent may not make much sense.
Timing Your Claim
Generally, you should file your claim as soon as possible, but you should check your state’s Statute of Limitations to determine how long you have to file your insurance claim and for which type. For example, the State of Pennsylvania allows up to two years to file a personal injury or property damage claim.
One reason you may want to wait is your claim history. If you have already filed many times, especially if back-to-back, Insurers may see you as a high risk, leading to increased premiums or even policy cancellation. However, even if waiting until the end of your state’s time limit to help out your claim history, late claims can make your case weaker and allow insurers to question the validity of your incident.
Determine If Filing A Claim Is Right For You
Filing and insurance claim is a big deal. It can have lasting effects that impact life after an incident. Overall, there is no one definite answer as to whether or not you should file a claim. You should evaluate your specific situation and determine what the best course of action is. Determine the potential costs both filing and not filing, think about how your claim would impact how your insurance provider would view your risk as a client, and figure out what the potential reward of each action could bring you.
Questions About Insurance? Reach Out To Us!
At Strickler Insurance, we serve clients in Pennsylvania and surrounding areas. We are located in Lebanon, PA and love to work with people looking for quality coverage at affordable prices. We provide a wide variety of insurance coverage, including the most common personal insurances like Home Insurance, Life insurance, Car insurance, and many more! Contact us for consultation services or request a quote online today!
