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Should I Turn in a Claim for My Little Fender Bender?

Should I File a Claim for My Little Fender Bender?

Have you ever had a minor fender bender and wondered if it was worth it to turn in an auto insurance claim? Will it benefit you in the long run or just cause problems?

Deciding whether or not to turn in a claim for a small accident is a common question I get from my clients. 

Some clients worry that turning in a claim will result in higher premiums. They’re afraid they’ll be “punished” for filing a claim for their little fender-bender.

But will they? Should they turn in a claim?

To give you a little guidance on whether or not to file a claim for a fender bender, I’ve addressed:

  • The top 3 reasons to pay for an accident out of pocket
  • The top 3 reasons to file an auto insurance claim.

Here are some tools to help you decide which option is better for your situation.

3 Reasons to Avoid Filing an Auto Insurance Claim

It’s not always wise to file an auto insurance claim when you have an accident. Sometimes filing a claim can lead to significant consequences. 

Here are the three times you’ll want to consider paying out of pocket instead of filing a claim.

  1. You’ve had an at-fault accident within the last three years.
  2. You’ve recently switched car insurance companies.
  3. The damage from the accident is less than $1,000.

 

1. You’ve had an at-fault accident within the last three years.

Did you know that in Pennsylvania an insurance company can legally cancel your car insurance if you have two at-fault accidents in a three-year period? 

If you’ve recently had an accident, you may want to hold off filing a claim on your fender bender to avoid cancellation. 

In Pennsylvania, your car insurance policy can be cancelled if you have two at-fault accidents in a three year period.

Once your car insurance is canceled, you can expect to pay very high premiums at another auto insurance company. 

An independent insurance agent can help you price out a new policy at multiple insurance companies, but even with numerous options, you will be paying more than you were previously.

2. You’ve recently switched car insurance companies.

The next scenario that you may want to hold off filing an insurance claim for a fender bender is if you recently switched your car insurance company.

If you are new to an insurance company and you turn in a claim, you may find that your rates go up when your policy renews due to a “surcharge.” 

A surcharge is an additional fee that gets added to your insurance premium. 

Insurance companies are known to surcharge their customers due to a ticket, at-fault accident, late payments, or coverage lapses.

When you submit a claim soon after switching insurance companies, your insurance company may add a surcharge to your premium for a few years following your accident.

3. The damage from the accident is less than $1,000.

The last scenario that you might want to hold off filing a claim is if the total damage from your accident is less than $1,000. In this instance, it’s a good idea to pay out of pocket if you can.

Since most car insurance policies have a $500 or $1,000 deductible, you’ll already be paying half of the damage or even the whole amount of the damage.

With the potential for a policy cancellation if you have another accident or a possible rate increase, it’s often not “worth it” to turn in a claim for damage that is $1,000 or less.

 

3 Reasons to Submit a Claim for a Car Accident

Just as there are times you’ll want to pay for an accident out of pocket, there are also instances that you should lean toward turning in a claim.

These instances include:

  1. You have an accident with another car that is moving.
  2. Someone is injured in a car accident that you caused.
  3. Your little fender bender is going to cost more than you can pay.

 

Let’s take a look at these scenarios in a little more detail.

1. You have an accident with another car that is moving.

Filing a police report at the time of your accident will help the insurance company sort out who is at-fault in the accident. Recording everyone’s account of the accident while memories are still fresh is very important.

You should turn a claim into your insurance company if the accident involves another car that is moving.

Sometimes, at the time of the accident, the other party may agree that they were at fault for the accident. Then, after a few days, the other party may remember things differently, questioning if they really were at fault.

They may claim that you pulled out in front of them or ran through a red light or claim that you somehow caused the accident.

When you turn in a claim, the insurance companies will determine who is at fault. 

To help the insurance companies determine who is responsible for the accident, you should file a police report documenting what happened. You should also take photos at the scene of the accident.

Your insurance company will provide you with the legal help you may need when you are in an accident involving another moving vehicle. 

2. Someone is injured in an accident that you caused.

If you are in a fender bender and someone is injured, you should always turn in an auto insurance claim. You can be held liable for their injuries.

Another instance in which you’ll want to turn in a claim is if anyone is injured in the accident.

Even if the other individual doesn’t appear to be severely injured, you’ll want to file a claim. Many injuries appear days or weeks after an accident. And after being in an accident, a person may not realize they have internal injuries that aren’t apparent right away.

Your auto insurance provides coverage for bodily injury. If you are at fault and someone is injured, you are responsible for paying for the injured party’s medical care and rehabilitation expenses. The average amount needed to cover these kinds of injuries is $15,443

To protect yourself, you’ll want to turn in a claim for any accident that could have caused physical injury to another individual.

3. Your minor fender bender is going to cost more than you can afford to pay.

I know this last point is obvious, but I’m going to state it anyway. If you have an accident, even a small fender bender, with damage greater than the amount of your deductible, don’t hesitate to submit a claim if that’s the only way you can pay for your repairs. 

Earlier, I stated that you should think twice before turning in a claim for $1,000 or less. 

However, you purchased auto insurance for a reason. Having your car repaired and drivable after an accident is essential. 

You depend on your car to get you to and from work, to tote your kids to school and extracurricular activities, and to carry out necessary errands like grocery shopping or doctor’s appointments.

So, if you have a minor fender bender that you can’t afford to pay for out of pocket, submit the claim. 

Your insurance is there to protect you. That’s why you bought it!

I’m still not sure if I should turn in a claim for a recent accident. What can I do?

Determining if you should file a claim or pay out of pocket for a car accident is not always black and white. You may not feel confident when making this decision.

If that’s the case, your insurance agent can help you decide the best course of action after an auto accident.

By walking through a series of questions, your insurance agent can help you make an informed decision before filing a claim.

Your agent can help you assess:

  • How likely you are to be surcharged if you turn in an auto claim
  • If your rates will increase due to your accident
  • How much of an increase you might expect to see after turning in a claim
  • How long you can expect to be surcharged after your accident

 

Your insurance agent should be very familiar with the insurance companies they work with and should know how each company responds to insurance claims.

Hiring Baily Insurance Agency to Be Your Insurance Advisor

Your insurance agent should do more for you than merely get insurance in place. They should be a trusted advisor to help you with all your ongoing insurance needs – from buying insurance to updating your policies to filing your insurance claims.

Your insurance agent is a liaison between you and the insurance company.

At Baily Insurance, our team is committed to providing excellent care and service to our clients.

We see insurance as more than a transaction – it’s a relationship.

If you live in Pennsylvania or West Virginia and need a personal insurance agent to partner with you, please give us a call. We’re looking forward to hearing from you.

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