When to file auto insurance clain

maple2 · January 2014

I recently caused some cosmetic damage to a rental car and am currently going through the damage reclamation process with the company. I have (thankfully) never had to deal with any sort of auto claim before, and I trying to figure out the best way to move forward. I can go through my insurance or I can pay it out of pocket. I anticipate the expense will be a couple hundred dollars. Should I go through my insurance since that's why I've been paying the premiums all these years? Should I pay out of pocket to avoid any potential rate increases which would likely be more expensive than the repairs over the long run? I currently have the best possible rating from my auto insurance company. I don't know if minor damage to a car would raise my premiums or not, and I'm not sure how to find out. Thanks!

hoffse · January 2014

I think Brij is our insurance expert - but I would imagine your premiums would go up. My rule is if the damage is less than $1,500 I pay out of pocket. Over that, I will think about filing a claim. That's just what works for me. I consider car insurance to be sort of a last resort thing - it's really designed to protect me against uninsured motorists and to cover the medical costs of other people in case I'm the one at fault. Body damage to cars is less of a pressing concern for me, unless the car is pretty new.

For the amount of money you're talking about, I would just pay out of pocket.

Xstatic3333 · January 2014

I agree; I would pay out of pocket if you can. In my state, claims like that can hurt your insurance rates.

jtmh2012 · January 2014

The first question is what is your deductible as you'll be responsible for that regarless. If it is really just a couple hundred dollars, chances are your deductible could be higher than the expense or close enough to it.

brij2006 · January 2014

jtmh2012 said:

The first question is what is your deductible as you'll be responsible for that regarless. If it is really just a couple hundred dollars, chances are your deductible could be higher than the expense or close enough to it.

This. If the cost of repairs is $400, and your deductible is $250. Then I would pay it out of pocket.

In most companies, once you file a collision claim (at fault or even not at fault) then you will no longer receive the best possible rate on your insurance. That claim follows you for 3 years, and you pay that higher rate until it is off your record.

However, make sure that the rental company isn't going to charge you for "lack of use" on the vehicle you damaged. Some companies will pull that vehicle from their fleet until it is fixed, and charge that person with days, weeks, and even months of rental charges because they lost revenue from it sitting. Although I'm doubting that will be the case for you if the damage is minimal. But just make sure that their estimate includes everything and is accurate before paying them anything.

When to file auto insurance clain

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