Wait, Check with Your Insurer Before Filing a Small Claim

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Wait, Check with Your Insurer Before Filing a Small Claim

Submitted by: anonymous 05/20/2009 2:11 PM

I read this on doughroller.net:

Think before submitting an insurance claim. My rule of thumb is that I won't submit a claim on a loss that is less than twice my deductible. So for a $250 deductible on an auto loss, I'll pay out of pocket any loss up to $500. Why? The $250 I'd receive from my insurance company is not worth the increased premiums I'm likely to pay. You may want to call your insurance agent to find out how a claim will impact your premiums before filing the claim.

I will definitely think twice about filing a minor claim.

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Comments:

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This is so very true. Read your insurance policy very carefully. I ended up paying for a slew of claims because I didn't check. It may lead you to find different or better coverage, too.
Jerry

Posted by Jerry on July 24, 2009 7:09 AM

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Here's a thought.

If you think you can afford some minor repairs on your own car, say up to $500 or so (actually, minor repairs nowadays are more in the $1000 to $1500 range) increase your deductible!

Insurance companies base the rates on the likelihood of claims and the cost of repairs. When a policyholder increases the deuctible, the insurance compnay knows there is less chance of frequent small claims. So your rate drops.

In effect, you self-insure up to the amount of the deductible.

HOWEVER--

Never, ever, try to handle accidental damage by yourself, if the damage also includes someone else's property. That's a recipe for disaster, in terms of inconvenience and unexpected liability.

Posted by Mike on December 19, 2009 7:34 PM

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