{"id":1078,"date":"2023-04-24T20:09:00","date_gmt":"2023-04-24T20:09:00","guid":{"rendered":"https:\/\/www.freeway.com\/knowledge-center\/?p=1078"},"modified":"2023-04-28T18:41:25","modified_gmt":"2023-04-28T18:41:25","slug":"should-i-file-an-auto-insurance-claim","status":"publish","type":"post","link":"https:\/\/www.freeway.com\/knowledge-center\/auto\/auto-insurance-claims\/should-i-file-an-auto-insurance-claim\/","title":{"rendered":"Should I File an Auto Insurance Claim?"},"content":{"rendered":"

So you\u2019ve had a minor accident. It happens to most of us, sooner or later. You might be a bit shaken up and wondering what to do next. Your first priority, of course, is making sure everyone involved is okay. If there are other drivers, be sure to exchange <\/span>auto insurance<\/span><\/a> information, whether or not you think it\u2019s necessary. The next step is to take photos of damage to all vehicles involved, the scene of the accident, and any property damage. Now you\u2019re probably asking yourself, \u201cShould I file an auto insurance claim?\u201d<\/span><\/p>\n

When Not To File An Auto Insurance Claim<\/b><\/h2>\n

There are certain situations when it may not be advisable to file an auto insurance claim. For example, if the cost of the damages is lower than your deductible, it may not be worth it to file a claim as you would end up paying for the damages out of pocket anyway. Additionally, if you have a minor accident that only causes cosmetic damage, it may be more cost-effective to pay for the repairs yourself rather than filing a claim and potentially having your premiums increase. Freeway Insurance, a popular auto insurance provider, offers a range of coverage options to help protect you financially in case of an accident or other unforeseen events on the road. They also have knowledgeable agents who can help you determine the best course of action in situations when filing a claim may not be the best option.\u00a0<\/span><\/p>\n

Situations When Not to File An Auto Insurance Claim<\/b><\/h2>\n

1. Minor accidents with no injuries or significant damage<\/b><\/h3>\n

In certain situations, it may be wise not to file an auto insurance claim, especially when the accident is minor and there are no injuries or <\/span>significant damage<\/span><\/a> involved. Filing a claim for a small dent or scratch that costs less than your deductible to fix could result in a higher premium or even a loss of your no-claims bonus. Additionally, if the accident was caused by your own mistake, you may want to consider paying for the repairs out of pocket rather than submitting a claim. It’s essential to weigh the pros and cons of filing an auto insurance claim before doing so, as it can impact your future coverage and rates.<\/span><\/p>\n

2. When the cost of repairs is less than the deductible<\/b><\/h3>\n

There are situations when it may not be wise to file an auto insurance claim, and one of those is when the cost of repairs is less than the deductible. In such cases, it may be more cost-effective to pay for the repairs out of pocket rather than filing a claim. This is because filing a claim for a minor repair can cause your insurance premium to increase in the future, which can end up costing you more in the long run. Additionally, filing a claim for a small amount can also affect your claims history, making it harder to get affordable coverage in the future. It is important to consider these factors and weigh the cost of repairs against your deductible before deciding whether to file a claim or not.\u00a0<\/span><\/p>\n

3. When the at-fault driver is willing to pay for damages out of pocket<\/b><\/h3>\n

In such cases, filing a claim may result in a higher premium, which could end up costing more in the long run than the damages incurred. Additionally, filing a claim may not be necessary if the damages are minor and the cost of repairs falls within the deductible amount. However, it is important to ensure that the at-fault driver provides <\/span>adequate compensation<\/span><\/a> for the damages and to obtain a written agreement stating the terms of the payment. It’s also important to keep in mind that if there is any uncertainty about the extent of the damages or if there are any injuries, it is always better to file a claim and let the insurance company handle the situation.\u00a0\u00a0<\/span><\/p>\n

4. When the accident was caused by the policyholder’s negligence<\/b><\/h3>\n

Filing a claim in such circumstances may lead to an increase in the policyholder’s insurance premiums or even the cancellation of their policy altogether. Moreover, if the cost of the damages is relatively low, it may be more cost-effective for the policyholder to pay for the repairs out of pocket rather than involving their insurance company. However, if there were other parties involved in the accident or if there were injuries sustained, it may be necessary to file a claim even if the policyholder was at fault. Ultimately, it is essential to weigh the potential benefits and drawbacks before deciding whether or not to file an auto insurance claim in any given situation.<\/span><\/p>\n

5. When the policyholder’s insurance rates may increase significantly due to filing a claim<\/strong><\/h3>\n

For example, if the damage to the car is minor and the repair cost is close to or less than the policyholder’s deductible, it may be more cost-effective to pay for the repairs out of pocket rather than filing a claim. Additionally, if the policyholder has a history of filing claims, they may want to consider the potential long-term impact on their insurance rates before filing another claim. In some cases, it may be more beneficial to pay for the damages without involving the insurance company to avoid any increase in premiums. Ultimately, the decision of whether or not to file an insurance claim will depend on the specific circumstances of the situation, and policyholders should carefully weigh the costs and benefits before making a decision.\u00a0<\/span><\/p>\n

A not uncommon occurrence with fender-benders is for the drivers to work out a cash arrangement and avoid insurance companies entirely. While this can work out fine, it is risky and generally not recommended. Say you rear-ended someone and from all appearances there is only minor damage that you can pay for out-of-pocket. But then a few days later, the other driver discovers more damage or realizes she is injured \u2013 being sued is now a real possibility. You are better off reporting the accident to your insurance company right away.<\/span><\/p>\n

When to File a Claim<\/b><\/h2>\n

While no one wants their rates to go up, you have an insurance policy for a reason and there are times you should use it. Below are <\/span>some examples<\/span><\/a>:<\/span><\/p>\n