When you file a claim with your auto insurance, there are a couple of details you should keep in mind. Here’s what you need to know.
Insurance is one of those things you’re glad to have but hope you’ll never have to use, like the oxygen masks in an airplane or a fire extinguisher in an apartment building. However, life happens, accidents happen, and it’s not unusual to expect that at some point in your life, you’re going to be quite happy that you have auto insurance.
In Canada, having auto insurance is mandatory, although the nature and extent of the coverage vary by province and territory. Even rental cars require insurance! In general, you’re required to at the very least have liability insurance, which covers any damages you cause to other vehicles, people, and property, as well as some type of injury protection which covers medical costs in case you injure yourself. Keep in mind that this kind of baseline coverage does not protect your car or your belongings in your car in case of theft, loss, or vandalism. That’s why it’s always important to think carefully about what kind of protection you want and search for the policy that best meets those needs.
Of course, one hopes to never have to rely on this protection. But let’s say you’re driving on an icy winter morning and try to turn into your driveway, only to feel your car veering towards your neighbor’s fence as your tires start sliding on the frozen ground. You ram into the fence, damaging the fence and leaving a nasty scratch and perhaps even a bump or two on your car. Not a great situation, but it can happen. Thankfully you’ve got insurance! But before you make a claim, there are a couple of things to consider.
Here’s the tricky thing about insurance claims: Every claim is a mark on your record, and the more claims you make, the riskier you’ll appear to insurance providers. And if it’s one thing insurers hate above all else, it’s a risk. The more claims you have, the higher your monthly premiums will be since insurers will consider you a high risk and charge more. If you have a lot of claims, it might even be hard to find a provider willing to insure you at all.
As such, you should really consider whether it’s worth filing a claim if the damage is only minimal and you could easily repair it out of pocket. The situation changes slightly if the damages incurred weren’t your fault. So if you were hit while parked in a legal spot, your insurance may not alter your premium, since you didn’t cause the damage.
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