Make a Claim?

Is It In My Best Interest To File A Claim?

You need clear answers when deciding to file a claim with your insurance company after your vehicle is damaged - whether it's a door ding, vandalism or a major collision.

The following information is provided to help you make a more informed decision to the question "Should I file a claim or not?" 

It is often believed, and with good reason, that a claim or multiple claims filed with your insurance company will in crease your premiums or possibly lead to cancellation of your policy. According to some sources, insurance companies generally believe that:

1. Once an accident has occurred to a vehicle, there is a greater chance another accident will be forthcoming.

2. A past history of claims is indicative of future claims.

Based on these beliefs, it is logical that your insurance company may raise your rates or cancel your coverage after filing a claim for one or more losses. However, every insurance company has different claim policies when determining rates and cancellations.

That is why you should:

1. Call your insurance agent and get their advice on filing a claim with your insurance company. Some insurance companies are direct sellers of their policies and you will not

have an independent agent, but you can call and discuss these questions with the claims department.

2. If the loss or accident involves another vehicle or someone either in either vehicle has been injured, you will probably want to report this to your insurance company because:

a. Any injured person will need to have their medical expenses paid for and it is unlikely you will want to do this yourself. These expenses are typically paid by one of the insurance companies involved and this requires filing a claim.

b. If the other party files a claim with their insurance company or yours, you will need to provide your statement on what happened.

3. If the cost to repair your vehicle is close to your deductible amount, there was no other vehicle involved and no one was injured, you may want to consider not reporting the loss to your agent or insurer. Your insurance company will only pay out when your vehicle repair exceeds your deductible amount or when someone is injured or other property is damaged.

4. When the repair cost exceeds your deductible and you can afford to pay for the repairs yourself, ask your agent how filing a claim will affect your policy rates in the future. If you have one or more previous claims or traffic violations, you will also want to discuss with your agent how placing a claim may affect your ability to continue to be insured.

5. If your agent determines that your rates will increase, do some simple math to help you make your decision to file a claim or not. Compare amounts over a period of one year or longer and decide what is the right thing for you to do.

In conclusion, there is no “one-size-fits-all” answer or formula to follow when making the decision to file or not to file a claim, but good information may help you make your decision.

Your agent and Old Dominion Collision are here to help. Just ask us.