“To File or Not to File, that is the question”. Although it sounds like a line from a Shakespearian play, some times this is a very important
question. When you are involved in a car accident and your thinking of filing an auto accident claim – filing an auto accident claim may cause you
more harm than good. Just because you have a car insurance policy, doesn’t mean you have to use it. In many cases; using the car insurance
coverage you have now many cost you much more in the future.
When is it best to say no to Filing An Auto Accident Claim?
If you recall from one of my earlier posts, I spoke about a states car insurance policy threshold. In many U.S. States an auto insurance threshold is established to provide a basis for chargeable and non-chargeable car accidents. Even though you may save some money today; in many situations you should consider not filing an auto insurance claim. This is always the case with minor car accidents. Example : You have a fender bender. The total damage to your car is between $500 and $1000.00. Your deductible is $750.00 and your states at fault accident threshold is $1150.00. If the damage to your car is $1300.00; paying for the damage yourself will save you on 36 months of an At Fault Accident Surcharge. By filing an auto accident claim, the small amount of the claim which is paid by the car insurance company is only $550.00. You are still paying $750.00 and you will pay an addition $300.00 a year – for three years. It’s better to consider not filing an auto accident claim and paying the entire damage amount.
Here’s an interesting take on the issue of filing car insurance claims
MSN Money advises you on When NOT to file a claim.
It’s food for thought at a minimum. In the long run, you should really analyze any action you take regarding what the long-term costs might be.