Filing car insurance claims is a simple procedure but one with implications we don't always expect. Deciding when it is appropriate to file a claim depends on a number of considerations that have a real world effect on your pocketbook and the relationship with your car insurance carrier. Everyone has had a claim for damage done to a vehicle. The second claim is the significant one. It almost always translates to changes in coverage or car insurance premiums. That's why it is important to keep a couple of things in mind if you have an accident or otherwise incur damage to your car.
Fundamentally, there are two basic types of insurance claims; liability and comprehensive. Knowing the difference can helps us to make better choices when thinking about filing car insurance claims. In simplest terms, liability means that someone is at fault. In these cases the amount of money involved include such things as punitive damages and medical bills, etc. In most cases, if you are the at fault party your carrier will pay the claim for you and may decide to terminate your coverage. That decision can depend on factors that are meaningful to the insurance company but not obvious to you. At the least, such events may lead to an increase in car insurance premiums.
The comprehensive claim is different from the liability claim in that there is no at fault party. An example of this is storm damage or hidden pothole in the street. Although you cannot be found responsible for events like these, the insurance company is just as displeased paying them as it is paying any other claim. Two comprehensive claims, and one or more liability claims will likely lead to termination of coverage or increased car insurance premiums. Do not rely on your history of prompt payments to ease the situation; it will not. Nor will the fact that you may have not made a claim in many years. Insurance is a strict numbers game. That is why filing car insurance claims is not something to be done carelessly. It does have relevant consequences.
Look at your car insurance like your major medical coverage. It is there in the event of a catastrophe. You pay your out of pocket money for the smaller expenses and save the insurance for the things that you can't afford. It keeps you premiums lower than paying for your insurance to cover everything. Whatever you can afford to pay, you should pay, regardless of the situation. Save the claims for the big expenses. This will cost a bit more but it will guarantee coverage when it is most needed.
