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When to Make an Insurance Claim

Knowing when to make an insurance claim can be a bit more difficult and costly than draining coolant or oil, especially for those who are worried about driving up their yearly premiums. To know exactly when to make a claim on your insurance policy, you need to know something about how the claims process works. Once you have this information, it will be easier for you to make the decision on whether or not to file a claim with your insurance provider.

How it All Works

If you are involved in a car accident, you may have a need to make a claim on your insurance policy. Usually, this occurs if the accident was your fault, if you were involved in a hit and run accident, or if you the other party has little or no insurance coverage to help pay for the damages caused. Once you decide that you are going to make a claim, you will need to follow your provider’s specific protocol for doing so. This can take a variety of different forms, including but not limited to and online claims filing process, in-person interviews, and telephone claims processes. No matter which method you will have to use to file your claim, you will have to pay your deductible to do so.

The deductible the amount of money that you have to pay to your provider in the event that you want to make a claim on your policy. When you are signing up for your insurance, you will set deductibles for the difference types of coverage you have. You can, for example, set a $500 deductible on your comprehensive coverage. If your car is damaged by something that is covered under this coverage, then you would pay your deductible and then your provider would take care of the damages to your vehicle up to your policy limit.

Making a Decision

Normally, you would make a claim on your policy for any incident that occurred that you wish to get a benefit from; however, there are certain situations in which it is not advantageous to make claims on your insurance policies. One of these situations involves a scenario in which the damages to your vehicle are actually less than the amount of your deductible. Clearly, you would not want to waste extra money when you could pay the lesser amount and get your vehicle fixed.

There are certain times when you might have a situation in which the damages to your car are only a few hundred dollars more than your deductible. In those situations, you might be faced with a real dilemma. If you do make a claim on your policy, then there is a chance that you will have to pay more for your insurance premiums. This isn’t always the case, but it’s a possibility after you make a claim. If you don’t make a claim on your policy, then it’s just going to cost you more money out of your pocket. As such, it can be a very difficult decision for you to make.

When deciding whether to make an insurance claim or not, you may have to think about your financial situation before you make a decision. You really need to decide what is better for you financially. In some instances, you may not be able to pay more than the deductible, so you may actually have to file a claim even if you don’t want to. Because instances like these are likely to come up, it’s really important that you set a deductible when you choose a policy that is going to be easily manageable for you.


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