If you’ve recently been in a car accident, you may be tempted to avoid filing an insurance claim, for fear your rates will increase. However, there are some benefits to filing that claim, rather than settling the matter privately. Here are some things to consider after you’ve been in an auto accident.
Are You at Fault?
If you’re at fault in an accident, then filing an insurance claim is a good idea. With your insurance company involved, you’ll avoid a lawsuit from the other party. If you make the decision to pay everything out of pocket privately, your costs may wind up being much higher than you anticipated. Your auto insurance policy’s deductible places a fixed amount on the out of pocket expenses you incur. If you’re sued, your insurance company handles everything.
Do You Have Accident Forgiveness?
Today, many insurers offer accident forgiveness. This means that your rates will not increase due to one accident, if you’ve maintained a good driving record for a period of time. If you have accident forgiveness, you have nothing to lose by filing an insurance claim rather than settling out of pocket, so long as the damage is more than your deductible.
Is Your Driving Record Clean?
Even if your auto insurer doesn’t advertise “accident forgiveness”, they often will not raise insurance rates on a long term customer who has maintained a good driving record for a period of years. So, you may save yourself some money by filing an insurance claim instead of paying all the damages out of pocket, particularly if you know your insurance rates will stay the same.
There’s no doubt that it can be more cost effective to simply pay for small auto claims out of pocket rather than filing every claim through your insurance company. Not only do you risk an increase in your insurance rates, but you also risk being dropped by your insurance provider if you have too many claims in a short period of time.
However, it’s also important to remember that the precise reason you pay for auto insurance is to have protection in the event of an auto accident. So, it’s wise to take advantage of the benefit you’ve been paying for, especially if it can save you money, or protect you from a potential lawsuit.
Getting Legal Help for Your Claim
Even with auto insurance, you can still be found at fault or sued by other parties involved in the accident. Likewise, as much as we'd like to think they will, not all insurance companies will "do the right thing" and so in the in the event of an auto accident, regardless of fault, it can be a very good idea to consult an attorney and be sure that you are protected and your rights are upheld.
