Before you file, though, its important to stop and evaluate.
Here are six things to consider before you file an insurance claim.
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Are You At Fault?
You may see yourrates increaseif youre at fault for the incident.
Many policyholders experience an increase in their annual premiums post-claim, said Stuart Bensusan, director atSurewise.
This potential rise in cost should be factored into your decision-making process.
Is the Damage Minor?
Whether its your home or vehicle, damage will happen.
A runaway grocery cart could scratch up your car in a parking lot.
You could back into the trash can someone put a little too close to the center of your driveway.
Its simply a financial decision.
This avoids the potential for premium increases, which can occur even for minor at-fault accidents.
Could the Situation Be Worse Than It Looks?
Damage can be deceiving.
What seemed like a fender bender could result in damage to the structure or internal workings of a vehicle.
Homeowners insuranceclaims can be even more complicated.
Be sure before you make your decision.
How Will This Impact Your Long-Term Budget?
Insurance claims stay on your policyfor at least three years.
However, theres no guarantee your rates will automatically drop once the three years are up.
You may need to be proactive in making sure the penalties for your claim are removed.
Your driving historyplays a direct rolein your rates.
When you shop for insurance, youll need to answer some questions to get a quote.
One of those questions will be whether youve filed a claim within a fixed period.
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Will You Lose Discounts?
Safe driver discounts have become common as insurers seek to put a positive spin on reducing risk.
Unfortunately, a claim puts those discounts at risk.
Youll no longer be seen as a claims-free policyholder.
Even if you dont file an insurance claim, you may be required to report an auto accident.
This is especially true if others are involved.
In some states, youre also required to file a report with law enforcement or other government authorities.
This usually applies if someones injured or if damages exceed a certain value.
Reporting the accident also comes with legal protections.
Even a fender bender could lead to issues later.
Weigh the cost against the risk of future premium increases before you file.
Stephanie Faris is a professional finance writer with more than a decade of experience.