When should I file a car insurance claim?

Question

You should file an insurance claim when you can’t afford to pay cash for damages or medical bills that your insurance policy will cover. You should pay out of pocket instead of filing an insurance claim if the repairs or medical bills incurred in an accident that you cause will cost less than your deductible.... read full answer

For example, it might be worth it to pay for a minor fender bender yourself, especially if the accident was your fault or you’ve filed a claim recently. Your claims history is important because the more claims you make, the more of a risk you are in the eyes of insurance providers. You could see higher premiums, or even have your canceled outright, as a result.

When to Consider Paying Out of Pocket

You have comprehensive or collision insurance and there is only minor damage to your vehicle.

Repairs cost less than your insurance policy deductible.

You have recent claims or tickets on your driving record.

When You Should File an Insurance Claim

There is major property damage that will cost more than your deductible to repair.

There are injuries.

The accident involves other vehicles.

You have accident forgiveness on your insurance policy.

Keep in mind that if you’re in a car accident, you should notify your insurance provider of the incident whether you plan on filing a claim or paying out of pocket yourself. All major insurers require customers to report all accidents, no matter the size.

Also, if you’re in an accident that’s not your fault, you should file a claim with the at-fault driver’s insurance provider so that it pays its portion of any medical bills or property damage you incurred in the accident. How much the at-fault driver’s insurance provider will pay out depends on the driver’s policy limits and their state.

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Answer 1 · 2022-03-09 12:05:40

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Leif Olson, Car Insurance Writer

@leif_olson_1 • 03/09/22 This answer was first published on 03/09/22. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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You should file a car insurance claim when you’ve been injured, or when your vehicle has been damaged after being hit by another car. It is important to file a car insurance claim as soon as you can in these situations because the longer you wait, the more likely it is that your claim will be denied by your insurance company.

On the other hand, there are some cases where it’s not a good idea to file an insurance claim. For example, a claim wouldn’t make much sense if you cause minor damage to your own car and vehicle repairs would cost less than paying your deductible.

When to File a Car Insurance Claim

You Should File If:	You Should Not File If:
You’re hit by another driver and your car is damaged.	You’re in an accident involving no one else, and you don’t have collision coverage.
You’re hit by another driver and you, or your passengers, are injured.	You’re in an accident involving no one else, and the repair costs are less than your collision deductible.
You accidentally crash your own car, and the repairs will cost more than your collision deductible.	You’re in an accident involving no one else, the repair costs are slightly more than your deductible, and you don’t want to risk an insurance rate increase.
Your car is damaged by an “act of god,” you have comprehensive insurance and the damage costs more to repair than your deductible.	Your car is damaged by an “act of god,” but you don’t have comprehensive coverage or the damage would cost less to repair than your deductible.

It is important to note that you should almost always notify your insurance company after an incident, even if you don’t end up filing a claim. To learn more, check out WalletHub’s guide to what to do after a car accident.

When should I file a car insurance claim?

Leif Olson, Car Insurance Writer

When to File a Car Insurance Claim

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