Tuesday 16 March 2010

To File Or Not to File - Filing an Insurance Claim


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No one looks forward to the day they find themselves in a car accident. Regardless of the severity of the accident, you are likely to be shaken by the situation and unable to think clearly through the situation. With this in mind, it is important to do your research ahead of time so you know what to do in the event you are involved in a car accident.

The process seems like it would be obvious. Move your car out of traffic if possible, call the police, check on everyone to be sure there are no injuries, answer the law enforcements questions, exchange insurance information and be on your way. After the accident you call your insurance company and get your car repaired. Pretty straight forward, right? Actually, not so much.

Every time you are involved in an accident that is reported to your insurance company it is recorded in your records. Even the smallest of accidents can cause you to be considered a higher risk to insure, causing your policy premiums to skyrocket. Some of these claims can be avoided all together, so it's important to assess the situation before you call your insurance agent and report that fender bender.

The first thing to consider whether or not the police officer gave you a citation. If you were the fault of the accident, it is likely that your rate will jump regardless. So if there were damages to your car or the other person's car its in your best interest to go ahead and call your agent.

Generally speaking, anytime there are injuries or damage to another person's property you need to call your insurance company and alert them to the situation. Failing to do so could cause your policy to be cancelled and finding new insurance coverage could be a very challenging task.

When the accident only causes damage to your own car and there are no injuries to report, you should use caution before you pick up the phone and report the incident. If your teenage son, for example, forgets to put the car in park and bumps into the wall of your garage, you may not want to call at all. Look at your insurance policies deductibles and also take a look at your current financial situation. If the damage to your vehicle is less than the deductible, there is no point in reporting the damage. A $1,000 deductible means your paying full price for anything bill that is less than that amount, so calling in the damage will only cost your more in the long run. Even if your damages are a bit more than your deductible, if you have the funds to cover the repairs or you can live with the dings and dents, do so. What you will pay in increased premiums over the next five years will likely cost you more than the bill from your local mechanic.

Your insurance is there to protect you from serious financial loss in the event of an accident. It is best you look at is just that- coverage for the situations that are outside of your abilities to financially fix yourself.

Tags : Hipmore game Insurance, Auto Insurance Critical illness cover

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