When Not File a Claim
You pay your insurance premiums every month or even full price, yearly, and when it’s time to file a claim, you are not sure what to do.
Here are the situations when it may NOT make sense to file a claim with your insurance company.
Here are some examples:
-If the cost of repairs is less than the deductible on your policy, it may not make sense to file a claim. This is because the deductible is the amount you must pay out of pocket before your insurance kicks in.
-If the issue is minor or cosmetic. For example, a small dent on your car or a small stain on your carpet. It may not be worth filing a claim as the cost of the repairs is likely to be low.
-If the issue you’re dealing with is a pre-existing condition, or wear and tear, your insurance may not cover it.
-It’s important to understand what your insurance policy covers and what it doesn’t. If the situation you’re dealing with is not covered by your policy, it’s unlikely that your insurance company will pay out.
-Filing a claim can sometimes result in an increase in your insurance premium. If the increase is significant, it may not be worth filing a claim.
-Having too many claims will affect your claims history and might result in non-renewal of your policy.