Getting into a car accident can cause many problems, both financial and physical. While car insurance is made to help relieve any financial issues, if you are considered at-fault, your insurance premium can become more expensive after submitting a claim.

Many people that get into minor accidents decide not to submit a claim to help save them money in the long run. But does paying out of pocket really save you money or is it better to submit a claim?

Submitting a Claim

After submitting a claim, your insurance premium won’t be increased automatically. Any policy changes will be enacted after your current policy is over and renewed for the next year. Submitting a claim is especially important in the case of injury, personal liability, or severe damage.

If you don’t submit a claim after an accident, there could be potential repercussions, even if the accident was a minor one. If the other driver decides to sue, your insurance company won’t cover any legal fees if you did not file a claim on time. Some insurance agencies can even drop your coverage altogether if it is found you did not file a claim.

Paying Out of Pocket

There are a few things to take into consideration before deciding to not file a claim. First, depending on the number of people involved in the accident and if any are minors, you may not have a choice to pay out of pocket, and must submit a claim.

Second, who was at-fault? If you are at-fault, you may not want to file a claim to avoid a rise in your premium. Though, if you at not-at-fault, your insurance company will cover any vehicle or medical expenses.

Third, the type of accident is probably the biggest factor in deciding whether or not to file a claim. If the accident has minimal damage or your deductible is high, it may seem like a better idea to pay out of pocket. However, if the accident is major, it may be in your best interest to report a claim for financial reasons.

Consider a Zero Payout, where you still report the accident to your insurance agency through an informal claim. This means that your insurance agency will not reimburse you for any damages, but you will eliminate any risk of not reporting the accident. Usually, zero payouts will not affect your insurance premium. Speak to your insurance agent for more information regarding this option.

Payne Insurance Group

Be sure to consider all your options before making a decision. Regardless if you want to pay out of pocket or file a claim, it is good practice to report any accidents you are involved with to your insurance agency!

Payne Insurance Group provides insurance for auto, home, commercial, and much more! Payne Insurance Group has partnered with over 13 businesses across the Rio Grande Valley, As a result, we have created a one-stop-shop for all types of insurance!

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