Three Reasons Not To File A Claim For That Fender Bender
North American Precis Syndicate
You don't always need to involve your insurance company after an auto accident. (NAPS)
(NAPSI)—Although you’ll almost certainly want to have your
insurance company cover the cost of a car accident involving multiple cars
and serious damage, with plenty of other crashes, you may want to simply
cover the cost yourself. Here are some conditions and situations when that
option can make sense. The more of these that apply, the more you should
consider simply paying the damage yourself.
The Damage Cost Is Close To Your
Any damage you do to another vehicle is covered under the liability
component of your policy, while damage you inflict on your own car will be
handled through your collision or comprehensive insurance, assuming you have
such coverage (some people drop it for older vehicles).
If you estimate the damage inflicted to your car to be below your
deductible, or even slightly above it, you should just handle the repairs out
of pocket. If the damages are $300 but the deductible is $200, you would save
just $100 by filing a claim and your premiums could easily rise by more than
that in the long run.
You Alone Are Involved
In an accident with no more than two drivers, where neither is injured and
the damage appears to be minimal, you can both agree to not call the insurance
company. There are, however, several reasons to be cautious about doing that.
The first is that the other driver can at any time renege on the agreement
to not involve the insurance companies. A second is that even seemingly minor
fender benders involving two cars can be far pricier to fix than most drivers
would expect—in the thousands of dollars, for even a slow-speed (say,
10 mph) collision.
The upshot here? Not involving the insurance company is best reserved for
mishaps that involved your vehicle alone, or one in which you know, or have
other reason to trust, the other driver.
You’ve Filed For Other
Going it alone on a minor solo crash can spare you long-term pain. That’s
because filing too many claims through your insurer can cause your rates to
soar, possibly costing you hundreds if not thousands over the years following
The effect of making a claim varies by the state, the insurer and how long
it is since you submitted a claim, if at all. But the hikes can be hefty—20
percent or more, according to research by the finance experts at
For more information on auto insurance, as well as other personal finance
advice, visit www.ValuePenguin.com.
On the Net:North American Precis Syndicate, Inc.(NAPSI)