When Should I File an Auto Insurance Claim?
You have an auto insurance policy just in case the unexpected happens and you find yourself responsible for a collision. But what happens when you need to file a claim? Is it worth it? Knowing when to file a claim and understanding how it could affect your monthly premium is essential in making the best decision in the event of an accident.
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Believe it or not, the increase in your premium isn’t a punishment directly to you like getting a slap on the wrist from your insurance company. You aren’t personally being punished for being involved in a collision. When your insurer is coming up with your insurance premium, it’s all about the numbers.
Why Your Auto Insurance Premium Rises
Insurance providers use complex algorithms that consider factors like age, gender, driving record, how many claims you’ve filed, where you park at night, marital status, and more. Your premium is based on these factors, which is why you and your neighbor could have the exact same coverage limits but pay vastly different premiums.
Filing a claim affects your premium because it changes the calculations your premium is based on. Statistically speaking, after you’ve filed a claim, you’re more likely, statistically, to file additional claims in the future. As far as your insurer is concerned, there’s a greater risk associated with insuring you; therefore, your premium increases to offset the risk.
Which Type of Claims are the Most Expensive in Las Vegas Nevada?
Unsurprisingly, insurance claims in which your insurance company must pay out for medical care result in the highest bumps in premiums. Comprehensive auto claims, on the other hand, generally cause the most modest premium increases. Also, remember that if you are in an accident but are not the at-fault driver, then you, for the most part, won’t have to worry about your monthly premium being affected. In most cases and with most insurance companies, if you are not at fault but still have to file a claim with your own insurance company, your rates will not go up.
Think Before You File An Auto Insurance Claim
Your insurance is there to help you take care of the unexpected and filing a claim to cut down on your out-of-pocket expenses after an accident can help to ease the financial burden. However, before you file a claim, especially for minor damages, call your agent directly and get his/her advice. Don’t call in a claim directly to the claims department if it’s not an emergency. Call your agent first, that’s what they are there for, to advocate for you and give you their advice. You can take the advice, or still file the claim, it’s totally your choice.
Say, for example, that you are responsible for a minor fender bender that left you needing a $550 repair. If you have a modest $250 deductible, it may be tempting to file with your insurance company to have them cover $300 of the repair. However, while filing may save you money upfront, doing so will likely result in an increase in your monthly premium. Before you know it, the increase in your premium will exceed the $300 that you saved by filing.
Speak To Us At Nevada Insurance Enrollment
If you are in a collision and must file with your auto insurance company, chances are that you can expect to see a hike in your insurance premiums. Talk to your auto insurance agent to get some tips on what changes to your policy you may be able to make to bring your premium back down to a comfortable number.
Read More: Auto Insurance in Las Vegas, Nevada
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DISCLAIMER: It is important to note that the information contained herein is made general for the purpose of explanation. You should consult your policy for exclusions or other language that may alter your policy.