Those who do not fully read and understand what all the auto insurance policy they have bought covers, may end up in some troubles when filing claims. Take this example; you have met with an accident and your vehicle is not damaged. However, the other vehicle has suffered a damage worth, say $1000. You file a claim with your auto insurance provider and after a few months, you see an increment in your premium. You ask the concerned personnel and you are told that your maximum claim amount was $700 and that you have filed about this amount. So, this asked for the increase.
This means that if you would have read the terms and conditions segment properly, you would have known about this ‘maximum’ amount and would have been careful while filing for auto insurance claim. Best thing to do is to be careful when you file a claim. In case of any mishap, if the vehicle has suffered minor scratches and a few dents, take the car to a repair shop and ask about the expenses to repair the problems. If it is minimal and is near your deductibles, go ahead and pay for the damages on your own. Also, in case of any accident, make sure you immediately inform your auto insurance provider and police as well. This will be your plus point.
A minor incident can be overlooked and you may not need to file any auto insurance claim. But such may not be the case if it is a major accident. If you have substantially damaged another person’s property or other vehicle involved in collision, inform your insurance company yourself at the very first place. Do note the names and numbers of a few witnesses, time and date of collision as well as be the first one to inform the incident to the police. If the other party does all these things in first place, be prepared to suffer a few charges on yourself, even if the mistake was mutual or largely of other party.
