Will my auto insurance rate increase even if I don’t file a claim?
Here’s a quick background: I was backing out of a parking lot and didn’t see some bricks, which ended up damaging my bumper and breaking the hinges connecting it to the frame. It also wrecked my undercarriage splash guard and wheel arch liner. Initially, I planned to buy replacement parts from a junkyard and handle the repairs myself. However, my family encouraged me to call my insurance to see if they would cover the costs.
When I contacted GEICO, the representative informed me that inquiring about a claim could be seen as an admission of a fault collision. After gathering my information, they clarified that I didn’t have to file a claim and that any report would only be for record-keeping purposes. When I asked if having this incident recorded would raise my rates when I renew my policy, several agents couldn’t provide a definitive answer. However, one Spanish-speaking representative mentioned that if I chose not to use my insurance for the repairs, my rates shouldn’t go up.
Has anyone had a similar experience? If I decide to fix the damage out of pocket, will my insurance still increase simply because the incident is recorded, even if I didn’t file a claim?
It’s understandable to have concerns about how a situation like this could impact your insurance premiums. Generally, insurance companies may consider various factors when determining your rate, including claims history, regardless of whether or not the claim is paid out.
Since the representatives were unsure, the policy can vary significantly between different insurers. However, it’s often the case that minor incidents or claims where you’re not at fault don’t usually affect your rates as much as at-fault accidents.
If you choose to pay for the repairs out of pocket and don’t file a claim, it’s possible that your premium may not increase, since there wouldn’t be an actual paid claim on record. However, since you did inquire about the situation and there’s a record of your call, it may show up in their system.
If you’re concerned about the potential impact on your premium, it might be worth discussing further with a representative who has insight into how your specific policy works. Alternatively, you could request to have a formal written statement regarding how claims and inquiries are treated by your insurer. That way, you can make an informed decision on how to proceed. Good luck!