When You Shouldn't File a Claim

We are often called by clients wanting to file a claim. So many times, it doesn’t make sense to do so. Though it is the prerogative of the insured, there are many instances when a claim should not be filed.

The first thing to do when deciding whether to file a claim or not is to determine the cost of repair. I had a client who had a branch fall through and cause a hole in her roof here in Nevada. Home insurance Home insurance would obviously cover such a loss, though it turned out the cost of repairing a few shingles was about $1,200, and the insured’s deductible was $1,000. There is no need to get flagged by your insurance carrier if you are going to be paying most or all of your loss out of pocket anyway.

Some auto insurers consider your driving violations as good cause to raise your premiums or drop you. Unless the damage to your car is major, or causes risk of safety, like a windshield that you can’t see out of, it is best to pay for the repairs yourself, or live with the damage.

One challenge in filing a claim would entail a crystal ball to see the future to make the right decision. If you file a small claim, then have a catastrophic one, it adversely affects your premium. Filing several claims in a short time frame is asking for trouble. You will certainly get your premiums bumped up and you may get canceled.

When in doubt, call your insurance professional, (if you don’t have one, call Menath Insurance, 888-304-7353), to get his or her advice.