If you're asking yourself this question, you’re not alone. Many drivers often skip out on making claims to their auto insurance because they are unsure about what happens if they make too many. Making claims on your auto insurance not only increases your premium, but you could also find yourself without any coverage at all. Also, depending on why you’re making multiple claims, there may or may not be a penalty.
When you should make an insurance claim
Every little ding and scratch doesn't have to be reported to your insurance company. Most minor accidents should go unclaimed. For example, if you turn sharp around a corner and you run over something on the sidewalk that bursts your tire, you don't have to really claim this. This is because the price of your tire being repaired will often be less than the amount your insurance premium may rise if you claimed it. If a tree branch falls on your car and leaves a scratch, the cost of getting the scratch painted over may be cheaper than making a claim and dealing with higher monthly payments.
To decide whether not you need to make a claim, keep this gem in mind:
Your insurance is there as a comfort to make you and your car whole again in the event of an accident that causes damage to yourself or your automobile
If you run into a pothole, and it gives you a flat tire, this may not necessarily cause enormous damage to yourself or your automobile, so it’s something that you could fix without claiming it on your insurance. However, if you run into a pothole on a 55 mph highway you may damage more than your tire, which could put your life at risk or worsen the condition of your car should you continue driving it. This is something you might want to claim on your insurance.
What happens you make too many claims
In most cases, you'll just have a higher premium. The reason you get a good deal in the beginning is because the insurance company goes by your safe driving record and the security of your car. These two factors added up, shows the insurance company that they're not likely to have to pay out a claim on your vehicle; therefore, you're rewarded with a lower premium. However,if you get into an accident, the insurance company may increase your monthly premium.
If you get into too many accidents, the insurance company can choose to continue increasing your premiums or cancel out your policy altogether. Most insurance companies will cancel out your policy within the first two months of having it, if you make too many claims on it. A few of the other reasons for your insurance being cancelled due to multiple claims are:
- Multiple DUI convictions
- Multiple accidents (especially if you're found to be at fault)
For more information on Webster NY Auto Insurance or auto insurance claims, give Laurie C Pallini Agency a call at 585-310-4917.