Keeping track of your car insurance claims is key to managing your premiums and your financial health. Insurance companies monitor claim history, which directly affects your annual premiums. Two claims in a short period can lead to big rate increases.
When Should I File a Car Insurance Claim?
You should consider these three points before filing a car insurance claim listed below.
1. Vehicle Damage vs. Deductible:
- Compare the total vehicle damage to your deductible.
- If the cost of the damage is less than your deductible, paying out of pocket is usually better than filing an insurance claim.
2. Risk of Higher Insurance Rates:
- Look at your recent claim history.
- Two at-fault claims in 36 months will get you a 20-40% rate increase.
3. State Requirements for Accident Reporting:
- Know your state’s reporting requirements.
- Many states require you to report accidents involving injuries or property damage over $1,000, even if you don’t file a claim.
Twelve million car accidents happen yearly, 1/3 of which cause property damage. Most are minor “fender benders,” but severe accidents can be fatal. According to the NHTSA, there were 40,990 fatalities in 2023, half of which were from drunk driving.
The average motorist will be in a collision or car accident every six years or so. You may be one of the lucky vehicle drivers who has never had an accident during their driving career.
What Are Common Reasons Policyholders File Auto Insurance Claims?
An insurance claim is always made following injuries to another driver and damage to their cars. Depending on the type of coverage, it may be you and your vehicle that is affected.
Common Types of Car Insurance Claims:
- Rear-end collision - This can damage the back of the car and the driver inside, who might experience whiplash. Suppose you have personal injury protection coverage, known as no-fault auto and liability insurance. In that case, your insurance company will cover your medical expenses after you file the car insurance claim.
- Windshield damage - Whether from a vehicle accident or exterior factor, a car’s windshield should always be cracked and chip-free. Your comprehensive insurance coverage should cover windshield replacement or repair.
- Damage sustained while parked - Comprehensive insurance is king for any damage done to your car while you are away from it.
- Reversed into something - This is common and happens to the best. Another driver may even do the same to you. If you have collision insurance coverage, your insurance company will cover any physical damage to your vehicle minus your deductible.
- Vandalized - Any criminal-related activities that victimize your car, like vandalism, can be covered by comprehensive insurance coverage.
- Weather damage - After damage from hail and snow, comprehensive insurance can cover your vehicle.
- Single car accidents - As you noticed from some of these examples, there doesn’t always have to be another vehicle driver involved for an insurance claim. Running into something on the roadside, like a sign or post, is a job for collision coverage.
- Stolen Car - Like when a car is vandalized, theft is another criminal hazard that auto comprehensive insurance will cover with a replacement value auto insurance claim.
- Collision with at least one driver - Group accidents tend to occur at traffic intersections. Liability often depends on the driver at fault and which car insurance companies the auto claims are filed with. If you have full auto coverage, you will be covered from all these listed hazards by your insurance company. Basic vehicle insurance coverage with only liability auto insurance coverage and property damage can only do so much.
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Frequently Asked Questions
How long do I have to report a car insurance claim?
Most insurers want notice “as soon as possible” or within 30 days, and many states have a 10–30-day deadline for accident reports.
Will a small claim always increase my premium?
Any at-fault claim will not automatically stay on your record for 3–5 years and can trigger a surcharge if you have recent claims or tickets.
Does my deductible apply to both collision and comprehensive claims?
Yes, but you can choose different deductibles when setting up your policy.
Can I choose my own repair shop after a claim?
You can choose any licensed shop in most states, but using a carrier’s preferred shop will make paperwork easier and guarantee the work.
What if the other driver is uninsured and hits me?
Your uninsured motorist property damage (UMPD) or collision coverage will pay for repairs, and uninsured motorist bodily injury (UMBI) will pay for medical expenses.
Is a cracked windshield a comprehensive claim?
Yes—glass-only damage is comprehensive and often has a lower or no deductible.
Will my auto insurance rates go up if I’m not at fault?
In no-fault or comparative-fault states, the insurance carrier can increase your rates 50% or more at fault; pure no-fault claims don’t increase rates.
