If you own only one vehicle and the other vehicle was only damaged, filing an auto insurance claim is unnecessary. If no other parties were injured, and the other vehicle sustained minimal property damage, it will cost you more in the long run to file a claim. In addition, you will likely pay more in future premiums and out-of-pocket expenses because you will file a claim. There are several circumstances when filing a claim is unnecessary.
Time limits for filing an auto insurance claim
Depending on the type of policy you have, you may have to file your claim within a specific amount of time. The amount of time depends on the type of claim you have and your insurance company. To avoid wasting time filing your claim late, make sure you have all of the necessary documents handy. If your policy expires before you file your claim, you may still be able to receive coverage. Here are the common time limits for filing an auto insurance claim.
In general, you have two or three years from the date of the accident to file a claim. This time period is necessary because injuries can take a while to show up. In New York, the time period is two years for bodily injury claims and three years for property damage claims. If you do not have insurance, you can file your claim with the Motor Vehicle Accident Indemnification Corporation, which handles these types of claims.
Cost of filing an auto insurance claim
Filing an auto insurance claim will increase the cost of your premium. In general, the cost of filing a claim will increase by around three to twenty percent over three to five years. The exact amount of increase will depend on the type of claim, how much you file, the location you live in, and whether you have accident forgiveness. Premiums will increase most if you were at fault for the accident. However, you can expect an increase even if you were not at fault.
If you want to reduce the cost of your premium, try raising the deductible on your auto insurance policy. A $500 deductible will help you pay less each month, but you will be assuming more risk. Be sure to raise the deductible only as much as you can afford to pay in an emergency. And make sure to ask the insurer about the long-term consequences of filing a claim. Also, make sure to check the policy for accident forgiveness clauses.
Higher insurance rates
The most obvious reason for an auto insurance rate increase is when you cause damage to someone else. If you hit someone from behind, your rate will go up, but if you cause damage to another person’s property, your rate may not go up. In the same way, if you blow the siding off of your home, your rate will not go up, because you were not at fault. However, there are other reasons why your rate might go up.
In addition to a person’s driving record, the number of previous claims, the number of natural disasters in the area, and your credit score are other factors that may affect your insurance rate. The amount of a claim may vary, but in general, a $2,000 claim can result in a 44% rate increase. A second claim within one year can result in a 99% rate increase, depending on various factors. But a qualified insurance agent, like Ross Martin, says that filing a claim isn’t always necessary.
Drawbacks of filing an auto insurance claim
There are a number of drawbacks to filing an auto insurance claim. First, you’ll pay higher premiums than you might otherwise. Depending on the insurance carrier, you can expect to pay as much as 20% or more for your premiums after filing a claim. Furthermore, some insurers will penalize you for filing a claim, so they may increase your rates even after you’ve paid your claim. Regardless, you may be able to save money by paying out of pocket for repairs.
Second, you may have to pay a higher deductible than you’d like to pay. The higher your deductible, the higher your premiums may be. The good news is that if you file a claim through your own company, you don’t have to prove fault. Besides, it will save you a lot of time – filing a claim can take months, and you may have to deal with a sour relationship with your insurance company. However, if you don’t need your insurance company to compensate you for an accident, filing a claim can be a bad idea.