Will My Girlfriend’s Insurance Drop Her After a Third Claim in 10 Months?
I recently drove my girlfriend’s car while she was away and after parking it, someone accidentally bumped into it, damaging the door and necessitating about $4,000 worth of repairs — a significant amount for me right now.
She has full coverage on the vehicle but is hesitant to file a claim since she’s already submitted two in the last 10 months, each for minor damages costing around $2,500. She’s concerned that a third claim might lead to her insurance company dropping her or significantly increasing her premiums.
Adding to the situation, she divides her time between two states and still has the car registered and insured in her previous state, even though she technically resides in both places. One of her earlier claims was made after her move.
Her primary worries are whether the insurance company might penalize her for (1) having three claims in a short timeframe and (2) filing multiple claims from a location that isn’t her officially registered primary residence. Are these concerns justified? Could she potentially face cancellation or a steep rate hike from her insurer?
It’s understandable that your girlfriend is concerned about the potential consequences of filing another claim, especially after having two in the past year. Generally, insurance companies do review a policyholder’s claim history when determining premiums and the risk of insuring them. Here are a few points to consider regarding her situation:
Frequency of Claims: Filing multiple claims in a short time frame can raise a red flag for insurers. Many companies have specific thresholds for how many claims within a set period can lead to penalties, such as increased premiums or non-renewal. Three claims in ten months might be on the higher side, so it’s possible that her insurer could consider this when assessing her risk.
Type of Claims: If her previous claims were minor and didn’t result in significant costs to the insurer, they might be more forgiving of an additional claim. However, the $4,000 estimate adds weight to the concern about filing another claim.
Location of Claims: Insurers typically require policyholders to inform them of where the vehicle is primarily located and registered. If her claims are filed from a different location than her registered address, this could complicate matters. It may be beneficial for her to update her insurance policy to reflect her current living situation accurately.
Missed Opportunities: Before deciding to file the claim, your girlfriend might want to contact her insurance agent or company to discuss her situation. They can provide insights into how her claims history may impact her policy and whether it would be advisable to file this third claim. Sometimes, it’s better to understand the potential ramifications which can reduce anxiety about the decision.
Out-of-Pocket Options: Given the estimate for the repairs, she may also want to weigh the option of paying out of pocket versus dealing with a potentially higher premium later. If she can manage the cost without aggravating her financial situation, it may be worthwhile to avoid another claim.
Ultimately, it’s important for her to weigh the potential risks against the need to repair the car. A direct conversation with her insurance agent will give her clearer guidance tailored to her situation.