Will my auto insurance premium increase even if I don’t file a claim?
Here’s my situation: I was backing out of a parking lot and unfortunately hit some bricks I didn’t see. This damaged my bumper, broke its hinges, and ruined my undercarriage splash guard and wheel arch liner. Initially, I planned to buy replacement parts from a junkyard and fix everything myself. However, my family urged me to contact my insurance, GEICO, to see if they could help with the costs.
When I called, the representative informed me that inquiring about a potential claim could be seen as admitting to an at-fault accident. After some back and forth, they mentioned that I wouldn’t have to use my insurance for repairs, and the claim would merely be for record-keeping purposes. I asked if having this claim on record could still cause my rates to go up at renewal, but several agents were uncertain. One Spanish-speaking agent mentioned that my premium wouldn’t increase if I opted not to use insurance to cover the damages.
Has anyone else faced a similar situation? If I decide to handle the repairs myself, will my insurance still go up simply because there’s a record of the incident, even if I don’t file a claim?
It’s understandable to be concerned about how reporting an incident like this could impact your auto insurance rates. Generally speaking, whether or not your insurance premium increases depends on a few factors:
Claim History: If you report an incident to your insurance provider, even if you don’t use insurance to cover the costs, it may still be logged as a claim. Insurance companies often review claims history during renewal, so it could potentially affect your rates. Some insurers have policies where merely inquiring about a claim can count against you.
At-Fault Accidents: Even if you don’t file a claim, calling in an incident could be treated as an at-fault incident by the insurance company. However, the extent of that impact can vary by insurer.
Insurance Policy Specifics: Each insurance provider has its own rules and practices. Some may not penalize you for just reporting an incident if there’s no payout made, while others might.
Loyalty and Discounts: If you have a long history with your insurer or qualify for certain discounts, those may buffer against rate increases.
To play it safe, if costs are manageable for you and you’re concerned about potential impacts on your insurance, it might be best to repair the damage out-of-pocket rather than reporting it. If you decide to proceed with the repair yourself, you could avoid any potential claim history that might influence your premium.
For a more definitive answer, you may want to ask your insurance company for their specific policies regarding claims and how they handle them, especially considering your situation. Additionally, checking with other companies or agents might give you a clearer understanding of general practices in the industry.