Will my auto insurance increase if I don’t make a claim?
Here’s my situation: while backing out of a parking lot, I accidentally ran over some bricks, damaging my bumper and breaking the hinges that attach it to the car’s frame. I also ruined the undercarriage splash guard and the wheel arch liner. Initially, I planned to visit a junkyard to find replacement parts and fix it myself. However, my family suggested I check with my insurance to see if they could help cover the costs.
When I called GEICO, the representative informed me that inquiring about a claim could be interpreted as admitting to an at-fault accident. After collecting my information, they confirmed that I didn’t have to file a claim, and it would be merely for record-keeping purposes. I then asked whether having this incident recorded would impact my insurance rates at renewal, and while many agents were unsure, one Spanish-speaking representative assured me that my policy wouldn’t increase if I didn’t file a claim.
Has anyone experienced something similar? If I decide to pay for the repairs out of pocket, will my insurance still go up simply because there’s a record of the incident, even though I chose not to use my coverage?
It sounds like you’re in a tricky situation. Generally, insurance companies look at your overall claims history when determining your premium, and any report or inquiry you make can potentially influence their assessment—though this can vary by insurer and state regulations.
In your case, since you didn’t actually file a claim and instead just inquired, it’s less likely that your rates would increase. Many insurance companies, including GEICO, do consider whether a claim was filed versus simply having a discussion about potential coverage. If you choose to pay out of pocket for the repairs, you shouldn’t see an increase solely based on the inquiry, especially if formal claims weren’t made.
However, experiences can differ, and different companies have different policies regarding how they handle inquiries and claims. It may be a good idea to monitor your renewal rate closely and reach out to your insurance company if you notice any significant changes. If you’re concerned, you might also consider discussing your situation with a local insurance agent who can provide guidance tailored to your specific case and provider.