Some types of insurance, particularly auto and home insurance, may raise your premiums after you file a claim. Understanding how claims affect your rates can help you decide whether to file or pay out-of-pocket for smaller incidents.
- Tip:
Consider the long-term impact of filing a claim—While it may seem like a good idea to file a claim after an incident, consider how it will affect your premium. For minor damages, you may decide it’s better to pay out-of-pocket rather than risk a rate hike.- For Auto Insurance: A minor accident might result in a higher premium for several years. Consider whether the repair costs are close to or below your deductible.
- For Home Insurance: For smaller claims, like a broken window or minor damage to your roof, weigh the cost of the deductible and repair against the potential increase in your premiums.
Leave a Reply