Should You File A Claim? Read this first.

You can’t escape your claim history so, before filing a claim, make sure it is worth the premium increase.  On average, filing a single claim can raise your monthly premium by an average of 9%, according to insurancequotes.com.  Filing a second claim can increase your premiums by as much as 20%!

The type of claim has a large impact.  Liability claims from personal injuries are probably the most expensive type of claim.  Vandalism and theft also lead to big premium increases…especially if is in a home located in a crime-ridden neighborhood.  Higher premiums will reflect that.

The size of the claim has little impact.  Regardless of how small the claim may be, it can still raise your premium as if you’ve filed a large claim.  The generalization is that once you’ve filed a claim, you’ve become a riskier client and, it is likely that you’ll have more claims in the future.  Obviously, this is not always the case however, insurance carriers use statistics to determine where Insureds fall within the spectrum.

The Comprehensive Loss Underwriting Exchange (CLUE) is a database that insurance carriers use to track 7 years of your auto and property claims. It also tracks the number of inquiries made regarding your claims.  Based on your claim history, insurers determine if you’re eligible for coverage through them and what your rates would be.

Here are pointers for keeping your insurance costs down:

  1. Avoid making small claims.  Receiving a few hundred dollars back if a tree limb falls on your garage could be more costly to you in the long haul especially if the damage is not significant.  Use your insurance for catastrophic repairs only.
  2. Increase your deductible. But not so high that you can’t afford to pay out-of-pocket costs if damage occurs.
  3. Shop around often. Look for quotes once a year. The insurance industry is very competitive.  Get the best coverage at the best rates.

Seeking insurance?  Contact us for a free, no-obligation insurance QUOTE.  We are here to help.