Auto Insurance Claims: Is it necessary to file?, auto insurance claim, underwriting department

Question
QUESTION: Can you answer my question. Yesterday bend tree branches due to the heavy snow scratched on a sliding door of my mini van on the passage side that resulted in a chip or small scratch. Should I file comprehensive claim? My deductible is only $50. Is it necessary to file the claim and why? Thank you for your answer.

ANSWER: Hello lou,

It appears that you do have a comprehensive claim (the insurance companies will do a coverage investigation to determine this). You file a claim and they decide how to cover it (not your decision or you do not file what type of claim).

Should you file? If you want coverage then yes, you have to. If the damages are minor, you can chose to pay your own damages so your rates will not be increased. It is your call. If you are worry about your rates, consider getting a quote before you file. It will help you see where your rates are and where they should be after the claim is paid. To get a quote, visit:

http://www.auto-accident-blog.com/go/auto-insurance-quotes.php

Good Luck
Anne
http://www.auto-insurance-claim-advice.com/

---------- FOLLOW-UP ----------

QUESTION: From your answer, I learned whether I should file depends on whether the rate will be increased. I can say the damage is minor. The repair (probably touch paint) should not be more than $200 or $100. I remembered I ever asked one insurance company several years ago how much claim would result in the rate increase. The answer seemed $700. (I hope you can also answer this question if you know it). Since my comprehensive deductible is only $50 and the repairs cost will be unlikely high, I think I should file, correct?

ANSWER: Lou, this is a very hard question. How much will your rates be increased by? No one really knows only your insurance company's underwriting department.

Different insurance companies do different things and some might not even ding you anything.

There are few things we do know that affect your rates and you should keep on mind before your file:

1. Your claim history (is this your first claim or the third one in six months)
2. The damages amount: $200. Is that enough for you to have one strike against your policy. If the insurance company raises your rates by $5 per month, you will have paid for the claim in 15 months (accounting for your $50 deductible). Anything after that would be savings to you.
3. You do pay insurance for a reason (in case you need coverage for a loss), so this might be a case where you decide to use it.

I am sorry I cannot give you a straight answer. There is simply no correct answer unless it comes from the insurance company itself.

Good Luck
Anne.

---------- FOLLOW-UP ----------

QUESTION: Thank you for your reply. According to my previous three times of experience from two different insurance companies, the comprehensive claim seems not resulting in the rate increase (I am not sure if the amount is large enough). It may be due to something uncontrollable. Anyway, I know how I should do. Can I ask you an addition question? If the insured files the claim but cancel it later or the estimate is less than the deductible, what effect will be on one’s insurance rate, nothing or something else?

Answer
Yes, I believe that I does. When I was adjusting claims, I had to submit a report to underwriting for every claim. Insurance works with risk, and they will use all information available to them to assess your risk.

Is this a claim that will increase their risk of insurance you? It will depend on the circumstances of the claim.

The question is how will this information affect your policy? Once you file, you can ask for a claim to be closed without payment, but the claim will always be on the records.

Good Luck
Anne