I was recently rear ended by somebody. I had stopped at a traffic light and the person behind me didn't stop in time and hit my van. The estimate to fix it is $700 however my agent tells me that it's not a good idea to file too many claims with my inurance company as that might increase my premiums. Is this true ? Even though it's not my fault and $500 will be paid by the other person's insurance company she is advising me to pay the $200 out of my pocket. The mechanic who gave me the estimate said he could file under minitort and my premiums won't go up. I have no idea whom to believe. I'm in Michigan.

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Originally Posted by uvasag

I was recently rear ended by somebody. I had stopped at a traffic light and the person behind me didn't stop in time and hit my van. The estimate to fix it is $700 however my agent tells me that it's not a good idea to file too many claims with my inurance company as that might increase my premiums. Is this true ? Even though it's not my fault and $500 will be paid by the other person's insurance company she is advising me to pay the $200 out of my pocket. The mechanic who gave me the estimate said he could file under minitort and my premiums won't go up. I have no idea whom to believe. I'm in Michigan.

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I have seen it both ways - I have seen people involved in accidents which are not their fault surcharge and/or not renewed; I have seen other companies which don't count.

For example, if your vehicle is rear ended often there will be a question about how fast you stop, if you are using caution, signs of a poor driver.

I would believe the agent who works in the industry before I would believe a mechanic who works in some other industry.

The insurance company doesn't want to spend money. And it probably cost them some amount to do the paperwork, etc. associated with a claim. So, they hedge their bets by trying to estimate how much money a particular person is going to cost them, and setting their rates on that. Now, if someone starts filing claims for every dent and scratch, the company can decide that this person is going to cost them more than the average person of that type, and decide to increase the rate.

Quite honestly, if it's only going to be 200 out of your pocket, I'd pay that and not file. Assuming that you can afford the money.

I've actually been amazed. I've been with my current insurer for about 8 years. During that time, I've filed at least 5 claims and my insurance has not increased. With my previous carrier I had maybe two claims in 20 years and my rates rose slightly each time.