Should I File A Claim For Auto Property Damage?
How do you know when to submit your claim to your automobile insurance company? If you are unfortunately involved in a car accident with damage to your your car or the other party you might think about calling your insurance company right away. Before making a phone call, you may want to think twice before reporting the claim.
Auto insurance carriers report every single claim to the national database known as CLUE. This is short Comprehensive Loss Underwriting Exchange. That system is used by pretty much every insurance company when deciding on whether to insure a prospective new client. If a claim has been paid for a dollar, a thousand dollars, or a million, they all show up.
This will potentially your eligibility with an insurance company, and also may increase your automobile insurance rates overall. Insurance companies look at the amount of the payout, as well as the frequency of claims, even if you have several smaller claims that add up to two bigger ones.
There are 2 types of auto insurance claims. One is called liability and the other is property damage. A property claim involves physical damage to your own vehicle. A liability claim, on the other hand, involves property damage or personal injury as a result of your auto. There are multiple things to consider when looking into whether or not to file a claim.
There are unique circumstances a lot of the time with accidents so hard and fast rules do not exist all the time. Here are some things to consider. If there is any doubt at all, always get in touch with your insurance agent for advice.
With regards to property damage claims, if you simply have damage to your vehicle then it is essential to look at the repair cost. Also you will want to consider the deductible amount and how it may affect your future insurability. If you are claim free on your record, you may not be opposed a penalty.
You also need to look towards the future. Say you turn in this claim which is small, then have a bigger one in 90 days. Now there are 2 on your record and if another accident occurs within a year you’re up to 3. Your auto insurance company may cancel you for frequency at that point. Then you are stuck in a position where you need to disclose the fact you have been canceled when you are looking for a new policy.
If the initial small claim included only damage to your auto, it is important to know your deductible. If you have a property damage claim and there is only five hundred dollars damage and you have a $500 deductible, common sense should prevail and it should not be reported. There would be no coverage.
If you have a small claims involving a scratch to your bumper or damage slightly above the deductible you would only be eligible for a small amount of money. Here’s a potential case that is encountered frequently in the US. Let’s say your auto is vandalized and your personal property is stolen out of your auto. Damage to the lock on your car totals $475. The damage to your personal property is worth $600 so assume you have a $500 deductible there would be no coverage for the lock damage. Unless you have a policy endorsement, there’s also no insurance coverage for your personal possessions since they were simply in the auto, and not a part of it. Therefore there’s no reason to file a claim for your property damage because it would not pay off anything. With regards to the personal property, it may be covered by a homeowners policy, but not by your auto insurance unless the policy is endorsed.
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