This article helps you figure out whether filing an insurance claim is really worth it by looking at deductibles, repair costs and how claims can affect your premiums. It also explains when you should file a claim, when paying out of pocket makes more sense and what to do to protect yourself if you do need to file.
Your insurance policy acts as a safety net for your finances. It’s designed to cover incidents you wouldn’t be able to pay for out of pocket and the more claims you have can lead to higher premiums and impact your eligibility for insurance coverage.
How claims can impact your premiums
Every claim you file, regardless of the amount, will be listed on your claims record. Before filing a claim, it’s important to remember:
- Claims can increase your premiums at renewal.
- Your claims history follows you, even if you switch insurers.
- Multiple claims may result in at least 10-20% premium increases or make you ineligible for certain coverages.
- Some insurers offer claims free discounts.
Is your claim worth more than your deductible?
Your deductible is what you pay out of pocket for each insurance claim. We recommend filing a claim if it’s at least double your deductible.
For example:
- Deductible: $1,000
- Damage: $1,200
- Insurer pays: $200
In this case, paying out of pocket would make more sense.
When to consider paying out of pocket
There are certain instances when paying out of pocket for a claim would make more sense financially or that your policy would not cover. They can include:
- Repair costs that are lower than your deductible.
- Damage that is due to wear, neglect, or maintenance issues such as long-term roof leaks or pest infestations.
- Being unable to prove ownership or damage (keep receipts, photos and a regularly updated home inventory to avoid this).
When to file an insurance claim
File a claim if:
- Damage is significant and costs will exceed your deductible.
- Anyone is injured (no matter how minor).
- A police report is required.
- Another driver is at fault in an accident.
Don’t forget to document everything when making an insurance claim. Take photos, provide receipts and keep a written record of everything to support your claim.
Most insurers have strict time limits for submitting a claim, so it is important to contact your insurer and your Acera Insurance advisor as soon as possible to avoid missing your opportunity for coverage.
Questions?
If you’re ever in doubt about whether or not to file a claim, contact your Acera Insurance advisor. We’re happy to provide you with advice and next steps to move forward in the claims process.
Get a quote.
Simply fill out a few details in our online form and one of our expert advisors will get your quote started.
Information and services provided by Acera Insurance, Acera Benefits and any other tradename and/or subsidiary or affiliate of Acera Insurance Services Ltd. (“Acera”), should not be considered legal, tax, or financial advice. While we strive to provide accurate and up-to-date information, we recommend consulting a qualified financial planner, lawyer, accountant, tax advisor or other professional for advice specific to your situation. Tax, employment, pension, disability and investment laws and regulations vary by jurisdiction and are subject to change. Acera is not responsible for any decisions made based on the information provided.