Know When Not to File an Auto Insurance Claim for Savings

Filing an auto insurance claim can be a hassle, and it's not always worth it. In some cases, the cost of filing a claim might be higher than the actual damage to your vehicle.

If you're involved in a minor accident with a parked car, you might not need to file a claim. According to article section facts, "filing a claim for a minor accident with a parked car can increase your premiums by up to 20% in some states."

This is because insurance companies view minor accidents as a sign of risk, and may raise your rates accordingly. It's not worth the extra cost if the damage is minimal.

You should also consider not filing a claim if the repair costs are close to your deductible. For example, if your deductible is $500 and the repair costs are $550, it might not be worth filing a claim.

A unique perspective: How Long after a Crash Can You Claim on Insurance

If you back into a post and put a dent in your bumper, there's likely no need to file a claim, as there's no threat of further damages or medical costs.

Your liability insurance won't cover damage you cause to your own vehicle, so you'll have to pay for damages yourself. Collision coverage is optional, but if you don't have it, you'll have to pay for repairs anyway.

Even with collision coverage, if the damage to your vehicle is negligible, you may still choose to forego filing a claim. If your deductible is higher than the cost of the repair, you'll have to pay out of pocket anyway, and you risk raising your monthly premium.

If the damage doesn't significantly exceed your deductible, you may not want to file a claim. For example, if your deductible is $1,000 and the damage is $1,200, you'll be responsible for paying $1,000, and your insurance company will cover the remaining $200.

In single-vehicle crashes with no injuries, it's your prerogative to decide whether to pay for repairs without filing a claim. Even if the damage exceeds your deductible, you may still choose to pay for it yourself to avoid a potential increase in your insurance premium.

If you have a high-mileage or aged vehicle, the cost of repairs may exceed the vehicle's actual cash value. In this case, insurance companies might declare the vehicle a total loss, making it more cost-effective to pay for repairs yourself.

In parking lot incidents where there's no identifiable culprit or witness, filing a claim may be challenging, so you might need to bear the cost of repairs without insurance involvement.

For more insights, see: How to File Insurance Claim against Other Driver without Insurance

If you back into a post and put a dent in your bumper, there's likely no need to file a claim, as there's no threat of further damages or medical costs.

You should be aware that liability insurance, which is required by law in most states, won't cover damage you cause to your own vehicle. It's designed to fix damage to other vehicles when you're at fault.

In some cases, the damage to your vehicle may be minor, and you might decide not to fix it. This could be especially true if you have an older model car or if the damage is very minor. As long as the damage is only cosmetic in nature, there's no reason to file an auto insurance claim.

Minor accidents that only involve you may not require a claim, especially if you're not injured and the damage is minimal. You could decide to pay out of your pocket to fix the damage to your vehicle.

Here are some situations where a claim might not be worth it:

Keep in mind that filing a claim can potentially lead to higher premiums or even non-renewal by your insurance company if you have recently filed multiple claims within a short timeframe.

Filing an auto insurance claim can have a significant impact on your premiums. If you're found to be at fault for the incident, your rates may go up as you're considered a higher risk.

The average premium increase in the U.S. for someone with full coverage is 34%, according to a 2020 study from Coverage. This is a substantial increase that can be difficult to absorb.

Filing multiple claims in a short period of time can also lead to higher premiums. Your claims history follows you for at least three years, even if you change insurance companies. This means that if you've recently filed multiple claims, it's likely that your premiums will increase.

Living in a no-fault state can also lead to higher premiums if you file a claim. In no-fault states, insurance companies are required to pay for medical costs, even if the incident wasn't your fault. This can result in higher premiums, as the insurance company tries to recoup the costs.

Take a look at this: Can I File a Claim with Two Insurance Companies

Here are some factors that may lead to a premium increase if you file a claim:

It's essential to carefully consider the potential impact on your premiums before filing a claim.