Question
Is it preferable (generally) to pay for small damages out of pocket rather than file a claim?
Assuming there is a need for a small amount of body damage (<=$1,000) to a car to be repaired, is it generally better to pay it forward out of pocket rather than file a claim and pay the deductible (especially if you are already paying high premiums)? This seems like an easy question, but I've received mixed responses so far. It would save money up front, but it seems that, over time, the increase in premiums would account for more than remaining amount for the damage. [Considering the state of the economy, I wouldn't be surprised if people were either neglecting inexpensive, cosmetic damages to their car or paying it out of pocket to avoid higher insurance costs in the coming months.]
3 weeks ago - 3 answers
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You have left out some key information in your question. First of all what was the cause of the damage, i.e. a collision claim or comprehensive or was it parked and struck by an unknown driver. Also how much is your deductible? Obviously if the amount of damage is below the deductible, you will not receive any payment and should not turn in the claim unless it involves another vehicle--in which case you are required to turn it in to avoid a "reservation of rights". If the amount of the damages only exceeds your deductible by $50 to $200 dollars, I would also not turn it in. To answer your larger question--all claims no matter how insignificant can affect your premium directly or indirectly, i.e. you can have a direct rate increase if you are at fault or you can lose a good driver discount, claim free discount, fail to qualify for a better (less expensive) program, etc. You should be speaking to your agent and find out what the impact would be hypothetically (so he or she won't turn in the claim) and then do the math. Only you can make the final decision. I hope this helps. Good Luck!
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by Margarita D
3 weeks ago
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Other Answers
my personal opinion is that if the damages are less than your deductible, pay for it out of pocket. i wouldnt even submit a claim. i am assuming you are talking about auto insurance. if you are at fault (which is probably why you are paying for it) and you submit a claim, your insurance will likely go up at renewal. if it is a comprehensive claim and your out of pocket exceeds your deductible, i would submit it because those shouldnt count against you.. at least i think because i filed two comp claims and mine didnt go up. one was from hitting a dog at a high speed (not my fault at all) and the other was when my car was stolen. neither one raised my rate. sadly, this is how people handle their "insurance affairs" these days :( i work in health insurance and no one wants to submit their claims because theyre afraid that their rates will go up. very sad.
by Angee- 3 weeks ago
Depends on the damages, and who's car, and the circumstances. If it's YOUR car, then yes, I'd pay out of pocket, or just let it go. If it's someone ELSE'S car, I would ONLY recommend paying yourself, if you hit a parked car with no one in it. Otherwise, if they later come back and claim medical payments and injuries, you're on the hook for that, too - as paying the first part yourself, voids your policy, and gets your insurance company off the hook for that entire claim.
by mbrcatz- 3 weeks ago