Will my auto insurance premium increase if I don’t file a claim?
To summarize my situation: while pulling out of a parking lot, I accidentally ran over some bricks. When I reversed, I damaged my bumper, broke its hinges, and ruined my undercarriage splash guard along with the wheel arch liner. Initially, I planned to buy replacement parts from a junkyard and fix everything myself. However, my family suggested I contact my insurance to see if they would cover the repairs.
When I called GEICO, the representative informed me that inquiring about a claim could be considered an admission of fault. After collecting my information, they assured me that I wouldn’t have to file a claim and that it would only be noted for record keeping purposes. I then asked if simply having this on record—regardless of whether I file a claim—would affect my premium at renewal. Multiple agents were uncertain, and one Spanish-speaking representative mentioned that my premium wouldn’t increase if I chose not to file a claim.
Has anyone dealt with a similar situation? If I repair the damages on my own, will my insurance rate still rise simply because there’s a record of the incident, even if I cover the costs myself?
It’s understandable to be concerned about how contacting your insurance company might affect your rates, especially when you haven’t made a claim. Generally, whether your auto insurance premiums will increase can depend on several factors, but here are some points to consider:
Claim Record vs. Claim Payment: Simply having an incident reported to your insurance company doesn’t necessarily mean your rates will go up, especially if you choose not to file a claim. Insurers often track claims activity, but not all inquiries or informal claims turn into rate increases.
At-Fault vs. Not At-Fault: Since this incident appears to be a non-collision or at-fault event (considered a property damage incident), if no claim is made, it might not affect your rates the same way a traditional accident would. However, this can vary by insurance provider and state laws.
Insurance Company Policies: Each insurance company has its own policies when it comes to how they handle inquiries and records. If you’re concerned about potential rate increases, it might be best to check your policy details or directly ask a manager at your insurance company.
Consider Increasing Your Deductible: If you’re worried about rate hikes, you might want to consider higher deductibles in the future, which can lower your premium. However, this means you’ll pay more out-of-pocket if an actual claim arises.
Monitor Your Renewal: When your policy comes up for renewal, if there’s a notable increase, you might inquire further with your insurer to find out the reason. It’s also a good time to shop around for quotes from other providers if you see a significant increase tied to this claim.
In short, if you decide not to use insurance and can manage the repairs independently, it’s possible that your rates may not increase. However, keep a close eye on your renewal and don’t hesitate to reach out to your insurer for clarification on their specific policies.