Ask Experts Questions for FREE Help !
Ask
    uvasag's Avatar
    uvasag Posts: 1, Reputation: 1
    New Member
     
    #1

    Aug 5, 2008, 09:36 AM
    Does filing too many claims increase my auto insurance premiums
    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.
    JudyKayTee's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
    Uber Member
     
    #2

    Aug 5, 2008, 10:31 AM
    Quote 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.

    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.
    froggy7's Avatar
    froggy7 Posts: 1,801, Reputation: 242
    Ultra Member
     
    #3

    Aug 5, 2008, 12:33 PM
    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.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #4

    Aug 5, 2008, 12:37 PM
    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.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

New auto insurance [ 6 Answers ]

I've been driving for two years now but only as an additional driver on my aunt and uncle's so my car insurance has been reasonably priced. But now I'm looking into buying a new car and even with all of the possible discounts my current insurance company (state farm) wants to nearly double that...

Insurance claims rep. Accessing info. Without permission [ 1 Answers ]

To whom it may concern: I live in Ohio. I was struck by another motorist (who admitted guilt). The claims rep. from his insurance company accessed my information from the hospitals automated phone system using my personal info. (soc. sec. num. d.o.b. etc.) without my permission. I was...

Details health insurance claims share with HR [ 9 Answers ]

Hello - I was recently in an accident were I needed to be sent to a trauma center at a hospital to get better. Luckily I got out in one day, and I used my health insurance through work for the bill. During my hospital visit they let me know that I tested positive for marijuana, which was a...

Filing small claims in another state [ 3 Answers ]

I want to file a small claims in another state but do not want to physically go to court. I purchased an item on eBay for $445.00 from NY and never received the item and never received my money back. The guy played cat and mouse games for a month about returning my money. I live in ND. If filing...


View more questions Search