Reporting smaller insurance claims

Insurance companies want to take premiums without having to pay claims. When you file a claim to property damage insurance companies can take away your safe driver discount, which in California adds up to about 20%. It also takes three years with the same insurance company to qualify for the safe driver discount.

Will qualify as small? you get into small fender bender, exchange insurance information, and you're on your way. But what of the other party breaks up with whiplash? Or goes to the hospital later? It's hard to define small, the cost of injury accident. People may not realize they're not injured until later.

Insurers need to know

Car insurance companies always want to know about accidents, even they don't total your deductible. Although failing to report an accident to your insurance company is not a crime in California, most policies specify you report an accident to your insurer within a few days. or they don't have to to cover you.

Making a misstatement or defrauding your insurance company, will also got your claim denied. In most fraudulent claims, the insured overestimates the damage. Not cooperating with insurance company investigators will also result in the payment of claims.

One of the best features auto insurance, in my opinion, is that insurance company lawyers represent you. Nowadays, legal fees can equal or exceed damages in an accident. But the insurance company cannot defend a case tIhey don't know about.

The DMV needs to know

the DMV wants to know about most accidents. You most report a car accident to the California DMV:

• Regardless of fault;
• Regardless of if the accident occurred on private property;
• Over the California state minimum of $750;
• If anyone's injured; and
• If anyone died.

Every involved driver must make a report to DMV via the Report of Traffic Accident form, SR 1. The CHP or cop on the scene will not make this report for you.

Substandard drivers

2 minor accidents in 3 years will usually make you a high risk driver. Your premiums could jump, or your policy could be canceled or nonrenewed.

Raise your deductibles to one thousand and pay most small claims out of your pocket. Handle the claim yourself as long as you are positive there are no injuries to yourself or the other party, doing this will help you keep low cost car insurance premiums compared to someone who turns in every scratch or dent.

Rate Increases

Did you know in California, not at fault accidents can make your insurance premiums jumpy our car insurance rates can be affected when multiple claims start adding up.

Insurance carriers look at each claimant differently, and depending on their appetite for risk, they could raise your rates depending on the extent of the damage in the accidents and/or property damage. Many companies will not raise your rates for a minor 1st accident or non-DUI traffic ticket. There are many variables, including the scope and size of the accident and the nature of the moving violation.

Because of the possibility of a jump in premiums or non renewal, plan ahead for minor damage yourself and is your insurance for major damage.

Written by Craig J. Casey

Financial Writer helping people with their insurance problems on the net since 1998.

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