Monday morning, you’re going to get the kids to school late, the traffic is at its highest of the day and to make matters worse you accidentally drive into the back of the car which is ahead of you.

Damage to your vehicle is minor, but still valued at a few hundred dollars. The question arises, should I ask my auto insurer to pay for this accident claim or not?

There are several aspects to know before claiming via your insurer. First when damage is minor, it is important to verify the amount of the excess you are liable for before you can make a road accident claim. If, for example, your deductible collision is $500 and the amount of losses is less than the deductible, there is no need to contact your insurer, as they cannot do anything for you.

propnelIn the case where your deductible is $500 and the total amount of compensation is $700, you must see if it is really worth making an accident claim. The insurer will assume say $200 of repairs, however your premiums will increase next year which is never good!

Generally, insurers are able to tell you approximately how much your premium will increase the following year after you make an accident claim. If the increase is minimal and you do not have the money to pay for all repairs, asking your insurer to pay can be an interesting conversation.

If you have very low deductibles or deductibles to $0. It is very tempting to call but as explained above, any fault accident will increase the premium the following year. So it is very important to increase validated with your insurer.

Furthermore, any responsible claim will increase your premium for X number of years depending on the subscription measurements of each insurer. For example, if your premium increased by 5% for 5 years [1] only because of your fault accident and before your accident you pay $ 490 for your car insurance:

Renewal Annual premium with 5% increase in relation fault accident difference between the premium before the accident ($490)

  • First renewal $ 514 $ 24
  • Second renewal $ 540 $ 50
  • Third renewal $ 567 $ 77
  • Fourth renewal $ 595 $ 105
  • Fifth renewal $ 625 $ 135

The total cost of the increase is $ 391 and the amount that the insurer is to pay $ 200, so you can see clearly that this is not really worth the claimed penalty for a small amount. Moreover, the increase is only in connection with the fault accident and your premium may be higher due to the normal increase.

If you have multiple claims under your belt a few years, it is not to your advantage to claim in a minor accident because your insurer will take away protections. For example, increasing your deductible to avoid the frequency of claims or removing your new value etc.

In short, at low claims, it is important to look with its insurer the impact of the claim in order to choose the most advantageous to your situation.

[1] It should be noted that the 5% increase and the number of years are subjective and can be different according to each insurer. 

The content of this article is for information the sole purpose of developing your thinking and not constitute any advice. Only a professional duly licensed insurer can analyze your personal situation, discuss your needs and advise you in terms of insurance. Click Assure is not an insurance company or an insurance broker or a representative in terms of the law. For questions of insurance, consult a professional