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 unfortunately, it got damaged while parked. Someone scraped the side, leaving a door that needs to be replaced with an estimated repair cost of around $4,000, which is a hefty amount for me right now.
She has full coverage, but she’s hesitant to file another claim since she has already filed two in the past 10 months, each for minor damages costing about $2,500. She’s worried that submitting this third claim may lead her insurance company to drop her or significantly hike her premiums.
To complicate matters, she divides her time between two states and has the car registered and insured in her previous state, despite technically living in both places. One of her earlier claims was made after her move.
Her main worries are whether the insurance company will penalize her for (1) having three claims in a short span and (2) filing multiple claims from an address that isn’t her registered primary residence. Are these concerns warranted? Could her insurer really drop her or raise her rates dramatically because of this?
It’s understandable for your girlfriend to be concerned about the potential impact of filing multiple claims in a short period, as insurance companies often evaluate a policyholder’s claim history when determining rates and coverage options.
Multiple Claims Concern: Generally, having several claims within a short timeframe can raise red flags for insurers. While the specifics can vary by company, many will consider this when assessing risk. In some cases, they may choose to increase premiums, offer lower coverage amounts, or even drop the policy altogether.
State Residency and Claims: The fact that she splits her time between two states can complicate things further. Insurance policies typically require you to report your primary residence accurately. If her policy is based in a state that has different underwriting standards or regulations than her current location, that could also impact her standing with the insurer.
Recommendations:
– Check the Policy: Review the terms of her insurance policy, as it may provide information on how multiple claims affect coverage and rates.
– Speak to the Insurer: If feasible, it might be helpful for her to call her insurance agent or representative for guidance. They can clarify how filing another claim may impact her specific situation.
– Consider Options: If she does choose to file a claim, she may want to weigh the costs of the repair against the potential increase in her premiums or risk of losing coverage.
– Evaluate Repair Alternatives: If she can cover the cost out-of-pocket, that might be preferable to filing another claim.
Ultimately, it’s important for her to weigh the risks and benefits of filing the claim against her current financial situation and insurance status.