Accidents typically affect car insurance rates. If you’re involved in a collision, for example, you may be marked as a high-risk driver, which results in higher premiums. This may tempt you to skip making a claim altogether, but that’s not always a good idea. Use the guide below to determine the best course of action after an incident.

When a Car Insurance Claim Is Necessary

In some cases, making a claim on your car insurance is a must, even if the damage seems minor. These instances include any accidents that result in injuries, and accidents in which it’s unclear who is at fault. When you make a claim, your insurer will represent you and work with the other driver’s insurance company to determine fault and decide on payouts.

Additionally, if the other driver makes a claim, your rates may increase even if you don't report the accident. In fact, not reporting the incident, especially when there is a police report, could have consequences later when the insurance company reviews your policies. Failing to report an accident may result in rate increases or insurance loss.

You should also make a claim anytime property damage is significant. Your insurance covers the cost of repairs and issues payouts for total losses. Even with a rate increase for a few years, these payouts will likely reduce your overall out-of-pocket expenses. 

When to Consider Not Making a Claim

If you’re in a minor accident where the only property damaged is your own, out-of-pocket costs for repairs might be minimal. For example, if you hit your mailbox when backing up, repairing paint scratches may be affordable.

Another way to decide whether to file a claim is to consider how much your policy pays out. For example, if you have $1,000 in damages and the insurance policy only covers $100, it may not be worth getting a rate increase for that amount. However, rate increases don’t always happen, especially if you weren’t at fault, so talk with your insurance agent when reviewing your policy to come up with the best plan.

When you need a car insurance policy that meets your needs and budget, turn to Edwards Insurance Agency. For nearly 100 years, they’ve protected the residents of Monroe County, WI, with comprehensive insurance coverage for cars and boats. Their representatives thoroughly inform customers of the varying aspects of each policy, ensuring adequate coverage when you need it most. Visit them online to learn more about auto insurance, or call (608) 269-4512 to schedule an appointment.