Archive for April, 2014
Everyone likes low auto insurance quotes year after year. When you have low rates charged by your insurer you can afford to keep good level of coverage without struggling to pay the premiums. Policyholders should remember that accidents and moving violation tickets affect your insurance costs for at least three years.
Also largest discounts are usually offered to drivers with good records. In that sense, making a claim would be the last thing you want to do. Consider a situation that you scratch the car while trying to park in your garage. The damages are around $700 and you have $500 access. You would be able to make a claim on your policy and you would receive $200 if you do. Do you really think it is worth your time or a good idea to make a claim? Do you really think you would not pay much more than $200 next year as a way of increased premiums due to this one claim?
Auto insurers will take everything into account and try to make money from insuring your automobile. It is your job to make sure that you pay as little as possible to them and keep most of your money in your pocket. One way of doing it is to avoid premium surcharges.
Some people may say to you that why would you not claim if you have coverage. The answer is that the coverage should be reserved for damages beyond your budget. In other words, you should only make claims when you have to. Why would you need to insure for damages that will not really bother you financially?
People may think that only a few hundred dollars and it would not bother the insurer. This is not really true in many ways. First of all it is a worry that the next incident will turn out to be a large loss. If you cannot handle your own car in your own garage how are you going to handle complicated situations with cars coming from all directions?
Secondly, small claims will require time to look into and deal with it. The administration costs can be larger than the actual claim in some cases. Even though companies try to computerize everything these costs cannot be wiped away easily and must be reflected onto the premiums charged starting with yours first as you are known to make a small claim.
Even you do not see much of an increase on car insurance rates this time you will see a proportionately larger increase the next time you have a claim. Multiple claims in a year would be seen as a sign of danger by most insurers. And even within three years they would not like to see several accidents.
There is not much you can do when you have to make a claim since you cannot afford to get your car repaired following an accident. However, you can at least try to keep the accident count low by avoiding making not much beneficial claims. Also, your time may be spent better rather than filling claim forms.