Will my auto insurance increase even if I don’t file a claim?
Here’s my situation: while pulling out of a parking lot, I accidentally ran over some bricks, damaging my bumper and breaking the hinges that attach it to the frame. It also wrecked my undercarriage splash guard and the wheel arch liner. Initially, I planned to get replacement parts from a junkyard and fix it myself. However, my family encouraged me to contact my insurance to see if they could help cover the costs.
When I called GEICO, the representative mentioned that inquiring about a claim could be seen as an admission of fault for an accident. After they took my information, they confirmed that I wouldn’t have to use my insurance and that the claim would only be kept for record-keeping purposes. I then asked if having this incident on record, regardless of whether I file a claim or not, would affect my rates during renewal. Unfortunately, several agents I spoke with seemed uncertain and couldn’t provide a clear answer. One Spanish-speaking representative, however, stated that if I didn’t go through insurance for the repairs, my policy wouldn’t go up.
Has anyone dealt with something similar? If I pay for the repairs out of pocket, will my insurance still increase simply because the incident is documented?
It sounds like you’re in a bit of a tricky situation, and it’s understandable to want to avoid any potential increase in your premium. In general, insurance companies may consider the number of claims or incidents you report, even if you don’t ultimately use them for payment, when determining your premium at renewal. However, the specifics can vary by insurer and your individual policy.
If you decide to fix the damages yourself and don’t file a claim, you may not see an increase in your premium because you haven’t made a claim that resulted in a payout. However, the fact that you reported the incident might still be recorded, and some insurers may take that into account.
Here are a few things you might consider doing:
Check Your Policy: Review your policy documents or talk to your insurance agent about how they handle reported incidents. Some companies have specific guidelines regarding this.
Ask for Confirmation: Since you’ve already spoken to multiple representatives, it might be worth asking for written confirmation regarding their stance on your specific situation.
Shop Around: If you’re concerned about potential rate increases, you could also consider shopping for quotes from other insurers to see if you can get a better rate that is not impacted by this incident.
Monitor Your Rate: If possible, keep an eye on your renewal notice and compare it to your past premium to see if there is indeed a difference.
Ultimately, the best way to avoid surprises is to stay informed about your policy and keep open lines of communication with your insurance provider. Good luck!