When you buy a car, you buy car insurance. If you have an accident, you'll file a car insurance claim to cover your costs and damages. There are times, however, when it makes more sense to refrain from filing an insurance claim.
In the majority of accident cases, you'll want to file a car insurance claim. That's because you are usually involved in an accident with at least one other driver. You'll need to activate your first party benefits and liability to cover the other driver's injuries and damage. You'll want an estimate of damage to your vehicle. Then you'll have it repaired. That means your insurance company is going to pay all those expenses.
When your car insurance company covers the expenses of a major accident or claim, be ready for them to raise your premium. That's how the insurance system works. If you maintain a clean record, your rates will keep dropping because you represent less of a risk to the insurance company. They trust that your good driving habits will stick with you. Insurance companies reward good drivers regularly. They prefer the business of good drivers because they don't have as many accidents. Even when good drivers have collisions, they're usually not as severe as a driver with a long history of reckless driving might have. Therefore, the insurance company pays less to settle the claim.
Most insurance companies will usually forgive a minor collision, especially if you weren't at fault. However, if you've already had a recent accident, whether major or minor, or if you've been written up for several traffic related offenses, your insurance company will definitely raise your premium if you have another incident.
Therefore, if you have a collision without injuries, you might find yourself in a position where it makes sense to not file a claim. You may want to just pay the bills yourself to avoid an increase in your insurance rate. The same is true if you have an accident on your own, such as if you slide into a telephone pole on an icy night. That might be the best solution if the damage is minimal and there are no injuries.
Another time you may want to resist filing a claim is for light vandalism. Usually the payment isn't worth the increase in your premium. Only file a claim if the damage is extensive and you file a police claim. Your homeowner's insurance may also cover vandalism if it occurs on your property.
Insurance should be used if you really need it. If you're solvent enough to cover an inconvenience like a fender bender with another car, you might want to think twice before filing a claim.
