FRIDAY, JANUARY 29, 2021
Should I File a Car Insurance Claim or Pay Out of Pocket After an Accident?
The decision to pay out of pocket or file a claim after an accident should vary depending on the circumstances—especially the severity of the damages involved.
To help determine whether or not you should file a claim, consider:
How Much is My Deductible?
In some cases, you may not receive compensation for a claim if you can’t reach your deductible. Your deductible is how much it would cost out of pocket if you have to file a claim.
For example, say your comprehensive coverage deductible is $1,000. You get into an accident and the total damages amount to $600. Since you can’t meet your $1,000 deductible, it would be more cost effective to pay the $600 out of pocket rather than trying to file a claim. On the other hand, if the damages are significantly more than your deductible, you may want to file a claim for your losses.
Are Other People Involved?
Almost any accident involving other people should be filed as a claim or at least reported to your insurance provider. This is because damages and injuries and swiftly turn into a lawsuit, which can be incredibly expensive. Not all injuries are apparent at first, either. Injuries can arise or grow worse over time, and if you don’t file a claim, you could be left without coverage.
Will the Damages Be Covered?
Not all auto insurance policies are created equal and you may find that you aren’t covered for certain accidents, especially if you only have liability insurance requirements as dictated by the state. Be sure to evaluate your policy and compare your coverage to the damages that occur.
Coverages you should consider include:
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Comprehensive Coverage: Comprehensive coverage provides compensation for damages to your vehicle caused by fire, wind, hail, lightning, smoke, theft, vandalism and other incidents not involving collision.
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Collision Coverage: Collision coverage provides compensation for damages to your vehicle caused by a collision with another vehicle or object.
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Liability: Liability insurance covers bodily injury and property damage you may cause someone else while operating the insured vehicle. This insurance is required in each state, though limit requirements may vary.
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Medical Payments Coverage: This insurance covers medical bills you and your passengers may face after an accident, no matter who is at fault.
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Uninsured/Underinsured Motorist: This insurance covers damages that occur in an accident involving another driver who is not carrying insurance.
When in doubt, speak with your insurance agent about possibly filing a claim.
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