7 Things to Consider Before Filing an Insurance Claim

ByChristina Drury

Insurance is a handy thing to have when things start to go wrong. But before you file a claim, there are certain considerations you should keep in mind.

When you have automobile and homeowner’s insurance, it’s only natural to want to use it when you have an issue, such as a dent in your vehicle or damage to your home from a storm. But here’s the thing: You shouldn’t use it for everything. While you are paying into the insurance, you’re also subject to premium increases and even cancellations if you use it too much or for the wrong things.

According to insurance experts, these are some things to consider before you start your next claim.

1. Who Is at Fault?

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In the case of a claim, the insurer will first try to pinpoint who is at fault. It doesn’t matter if it involves your home or vehicle; their first priority is to find the source of blame.

If you are at fault or found to be at fault when it’s up in the air, this could result in premium increases. Additionally, if you have too many claims, you could find yourself with a policy cancellation in hand.

2. When Did the Damage Occur?

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Time is of the essence in terms of insurance claims. In fact, you should initiate one as soon as the damage is evident. If you’re in an accident after calling the police, call your insurance agency.

Sometimes, it’s not possible to call right away, and that’s okay. Just call or contact your insurer as soon as possible.

3. How Significant Is the Damage?

Accidents Are Normal to You
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This is something you really want to pay attention to. If the damage is minimal or something you can cover out-of-pocket, it’s best to do so. The reason? To avoid an increase in premium costs.

You should do the same if the damage is less than your deductible. Why pay more out of pocket and risk a premium increase if you can just pay for it now?

4. Is the Damage Covered?

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This might come as a surprise to some, but not everything is covered under your insurance policy. For example, if you only have collision coverage on your vehicle, it won’t cover comprehensive damage, only that which occurs from an accident.

Same deal with your homeowner’s insurance. If your house floods, for instance, and you don’t have flood insurance, you could be on the hook for the damage. This is why it’s important to know exactly what your policy covers from the beginning.

5. Were There Others Involved?

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Here’s where things can get tricky. If someone else is involved in the accident or damage, your insurer will want to speak to theirs as well. There will be a full evaluation to determine who is at fault.

In this case, the claim can take longer, especially if you and the others involved have different insurance agencies.

6. Do You Have the Necessary Documentation?

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From the moment the incident first occurs, you need to document everything. For vehicle accidents, this will involve police reports and witness accounts.

If the claim involves your home, make sure you note when you first observed the damage and what, if you’re aware, caused it. The more paperwork you have, the better, because a lack of documentation can lead to denials.

7. How Will It Impact Your Premium?

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Insurers will likely raise your claim if you are found to be at fault. They can do that even if you’re not if the damage requires a substantial payout.

Sometimes, like if you’ve had the insurance for an extended period of time and never filed a claim, you may not see a difference. But as you file claims, your risk factor goes up, and that can result in a premium increase or, in the worst-case scenario, cancellation.

How to Start Your Claim

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The first thing you need to do to start your claim is to reach out to your insurance agency. Some will allow you to initiate the claim online, but you will eventually have to speak with one of the agents and possibly an adjustor.

Gather all of the information you need first before initiating the claim. It will help speed up the process.

When to File a Claim

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You’re aware that you shouldn’t file a claim for everything, but when do you file a claim? There are several times you should, including:

  • The type of damage you’ve experienced is covered
  • You’re not sure who is at fault
  • Someone has suffered an injury
  • You’ve suffered a total loss

When to Avoid Filing Claims

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There are specific times you should actually avoid filing a claim because doing so would impact your premiums and insurability more than not filing. These include:

  • Minimal damage that would cost less out of pocket than your deductible
  • Damage isn’t covered
  • There’s a claim in process, or you’ve filed some recently
  • It’s normal wear and tear
Christina Drury
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