When Not to File a Car Insurance Claim

If you get into an accident or your vehicle sustains damage, you can file an auto insurance claim. While it may be tempting to proceed with the process, you should take a close look at your situation and determine whether filing a claim makes sense. In some cases, not filing a claim may be in your best interest.

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When it doesn’t make sense to file a car insurance claim

Not filing a car insurance claim can actually save you more money than filing one in some cases, depending on the vehicle damage and your coverage specifics. Often, filing a claim can lead your insurer to raise your rates, so there may be times when it’s cheaper in the long run not to file.

Here are a few scenarios in which you should think twice before filing a claim.

The cost of damages doesn’t exceed your deductible

If you have a fender bender or minor car accident that leaves your vehicle with a small dent or other minor damage, you may be better off paying for your repairs out of pocket. It may cost less to cover the repairs on your own than paying your deductible. 

For example, if your deductible is $1,000 and it only costs $300 to repair your vehicle, holding off on a claim and using the funds in your bank account can save you money.

You accidentally damaged your vehicle and only have liability coverage

Unless you have collision coverage or comprehensive coverage, filing a claim because you backed into a mailbox or accidentally damaged your vehicle yourself won’t result in a payout for you. Instead, you should get an estimate and cover the repairs out of pocket. Reaching out to your insurer to file a claim and ask for compensation will likely increase your premiums.

You don’t want to fix the damage after a single-car, no-injury accident

You may decide that it’s not worth fixing the damage after a single-car accident with no injuries. This is particularly true if you have an older vehicle or you have plans to purchase a new one in the near future.

Will your rates go up if you file a claim?

Whether your car insurance premiums will increase after you file a claim depends on the circumstances of the accident and your status with your auto insurance company.

If you have a minor accident that wasn’t your fault and have been a loyal policyholder with a clean driving record, your auto insurance rates may not increase. On the other hand, if you cause a major accident and your driving history already has past traffic violations, you can expect a rate increase.

Here’s a breakdown of the expected increase in premiums each year if you filed a claim in this scenario. The net cost of submitting the claim through insurance would add up to $2,320 ($1,820 in increased premiums plus the $500 deductible). It would cost far more to file the claim than the $1,000 to just pay it out of pocket.

Years Later	Increase to Six-Month Policy	Increase to Month-to-Month Policy
1	$364	$61
2	$273	$46
3	$182	$30
4	$91	$15
5	$0	$0

Disclaimer: Table data is based on real-time quotes from Insurify’s network of 500+ insurance partners. Actual rates may vary depending on the policyholder’s individual profile and coverage needs.

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When it makes sense to file a car insurance claim

Filing an auto insurance claim may make sense in a number of situations, including if you damage another driver’s vehicle or injure someone.

You should file a car insurance claim in the following scenarios.

You damage someone else’s vehicle in a major at-fault accident

If you cause an accident that leads to significant damage to another party’s vehicle, you should definitely file a claim as the at-fault driver. 

Be sure to exchange information with them at the scene of the accident so that you have one another’s name, address, phone number, insurance policy details, license plate number, and driver’s license. Then, contact your car insurance company or insurance agent as soon as possible to start the claim process.

The accident results in an injury

A car accident that results in bodily injury always warrants an auto insurance claim. Your minimum liability coverage, which state law typically requires, can cover the medical expenses of another party if you’re at fault. 

Even if the injury seems minor or they say they’re okay, it’s a good idea to file a claim. Many injuries, like whiplash, may take time to fully appear and require medical treatment. Your liability insurance can cover the resulting medical bills for a hospital stay or X-ray.

Your car has major damage and you have collision insurance

Collision insurance can protect you financially if you collide with another vehicle or object, regardless of fault. If your vehicle sustains major damage in a single-vehicle auto accident and you’ve invested in collision insurance, filing a car insurance claim with your insurance company is smart. It’ll typically cover your repairs, minus the deductible.

Your car has major damage from a non-collision accident and you have comprehensive insurance

Comprehensive coverage helps pay for damage from non-collision sources, such as theft, vandalism, and extreme weather events. If you have this type of car insurance and would like to repair vehicle damage from a covered loss, you should file a claim to take advantage of the extra insurance coverage you paid for.

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