Important Things To Consider Before Filing A Claim

Will you have to fork over more of these if you file a claim?

So you’ve had an accident and you may need to file a claim? But you’re worried about the effects on your next renewal. Will your insurance go up or will it stay the same?

It’s a no-brainer if your premium stays the same – file the claim. But if your rates go up, isn’t that where the insurance company gets their money back? I know what you’re thinking because I ask myself the same questions.

Here are some things to think about before you make that fateful call.

Your Insurance May Go Up

As usual, each claim situation is different. The first question to ask is ‘who’s at fault?’ If you’re not at-fault, you should not be surcharged for the incident. However, companies often use claims history in their renewal calculation. Even though there’s no surcharge, there could be a hidden increase. Rating is a complicated matter and many factors play a part.

However, if you are at-fault in the accident, there’s a good chance there will be a surcharge on your next renewal – probably extending for several renewals thereafter. It’s not so much a case of the insurance company getting their money back, but more of a “friendly” reminder from your insurer that you should drive safer.

Severity Determines The Consequences

The severity of the at-fault incident determines the severity of the consequences. If you are partially at-fault for an incident, there may not be a surcharge for the event. Each insurance company is different, so that’s not a guarantee. However, if the incident is serious enough (Example: Driving drunk, causing an accident, and inflicting injuries on another person) it’s possible your policy will be non-renewed. That translates to exorbitant rates when you get a new policy.

Another thing to consider is losing accident-free discounts. If you’re currently enjoying a discount because you have not had an accident, then a claim may remove that discount. You should be able to see that discount on your policy. Claims can affect that discount and how much you pay on your next renewal.

Call Your Insurance Company

Regardless of the severity of the incident or who’s at fault, you should report all incidents to your insurance company. Accidents can get complicated very quickly. If you fail to report an incident and the other party decides to sue months later, you could have more problems. Your insurance company may question why it took so long for you to report the incident. They may even non-renew your policy.

Play it safe. If you have an accident, call your insurer or agent. If they recommend it, file a claim. After all, that’s why you bought car insurance.

How GEICO customer service impressed me with their phone tree.

The GEICO phone tree impressed this policyholder.

A few days ago, I had the annual pleasure of taking our Hyundai Sante Fe in for the state inspection. The time had come to spend $29 to get a sticker on my windshield that says my car is safe to drive on Texas roads. Granted, at least I’m not paying the exorbitant fees of some other states, but it was money out of my pocket at a not-so-convenient time.

So I thumbed through my glove box for my insurance cards and sure enough, I hadn’t replaced my old cards when my renewal came in the mail. Having worked in a few insurance offices, I know a lost insurance card is the most common reason customers call an agent’s office or insurance company. So I didn’t feel so bad NOT having it handy. (I’m just glad I didn’t discover it when a cop pulled me over.) But I still needed an updated card for the inspection.

I called the GEICO number listed on my expired insurance cards. Listening to the phone tree, I navigated pressing 3 or 4 options to get a replacement insurance card. They asked for my email address or fax number. Since I’m not the best at texting, I opted for the garage’s handy fax number. Within 3 minutes, GEICO had faxed my updated insurance cards to the garage. And I never spoke with anyone at GEICO.

I know some people are more comfortable talking with a live person to get a new insurance card. Had that been my option, I would have gladly taken it. But in most cases, it would have taken longer for a customer to get new insurance cards after talking with a customer service rep. People get busy, fax machines jam, and other things tend to delay a simple fax. To me, the phone tree is the most efficient use of my time – and the company’s time. I’m just glad the options were easy to understand and it worked.

Kudos to GEICO on getting me an insurance card in a timely manner. I don’t call them often, but when I do, they seem to be able to handle things well.

Five things you need to know about getting a car insurance quote online.

5 Things To Know for Online Insurance Quotes

Getting quotes for auto insurance is not difficult. However, shopping for car insurance is not usually a top priority for most of us. But when looking to trim down your monthly expenses, it’s worth the time to get some insurance quotes. Consider it an investment. In the right situation, you could save a $150 or more every month on your car insurance.

Here are five things to know when getting quotes on your auto insurance.

#1 – Insurance Companies Want To Help

Insurance companies want more business. One of the major ways insurers make money is by adding policies from new households. That’s why most major companies make it easy to get quotes from new prospects on the internet. When I shopped my policy, Progressive was the easiest website to use to get an online quote. It makes sense – if insurance companies want your business, they shouldn’t put up roadblocks (read: a bad website) to make that happen. That’s why most companies make it easy for potential customers to get online quotes.

#2 – All Insurers Are NOT Created Equal

Just like all restaurants don’t please all customers, it’s the same way with insurance companies. An insurer is only as good as the promise they keep. If you discover several customers from a particular company have had negative experiences, it may be good to look at other insurance companies. To look at customer reviews, check out these insurance companies’ Customer Reviews

#3 – Price (Premium) Varies with Different Carriers

Get quotes from multiple insurers and you’ll quickly discover not all companies’ policies are priced the same. There’s a reason. Actuaries at different companies determine the potential risk for each new customer and thus the price. Because actuaries disagree and companies determine what risk they want to underwrite at a particular time, each company charges a different price (premium) for their policy. It’s important to compare the same coverage, but even then, you will notice price discrepancies between insurers.

#4 – Get Multiple Quotes

If you’re interested in saving money, get several quotes from insurers. Prices vary and you’ll never know how much you could be saving without a few prices. Typically, we recommend getting 3-5 quotes for a new policy or policies. You can even call your current insurer to see what they could do to lower your premiums.

#5 – Invest the Time Now So You Don’t’ Pay Later

When my wife and I were reviewing expenses in 2008, we decided to review our car insurance policies. After shopping around, we ended up saving around $50 a month for two late model vehicles. It’s been a year since we got the new policy. Since then, we’ve saved $600 with our new policies. That’s why I recommend taking an hour or so now to get some auto quotes. It’s definitely worth the money you save.

To get quotes from several companies, go here: Multiple Online Auto Insurance Quotes