To file or not to file? That is the question.
When trying to decide whether or not you should file an insurance claim, it’s important to consider the many factors that play a role in making the appropriate decision.
Our Photography Insurance Problem Solvers suggest you contact your agent (or in our case, Insurance Problem Solver) before taking any action. An insurance professional will be better suited to weigh the costs and benefits associated with your incident.
For example, if your loss totaled $620 and your deductible is $500, we would typically advise our clients not to file a claim because the benefit ($120 saved) is not necessarily greater than the cost (future rate increases and unclean record).
Of course, every situation is different and should be assessed on an individual basis (with a professional). However, we have some general “Do File If-s” and “Don’t” File If-s” when it comes to the big question:
Do File A Claim If…
- You can’t reasonably afford to pay the out-of-pocket difference after the deductible. You purchase insurance so it’s there when you really need it, not small expenses. If you find yourself facing financial disaster or serious strain, you should seriously consider filing.
- You don’t have any recent claims. If your insurance records are squeaky-clean, a single claim may not have an impact on your renewal premium. However, this is different for every policy and carrier.
- Injuries are involved. If there is a chance that someone involved in the incident could claim they were injured, it’s usually advised to file a claim to protect yourself from an injury lawsuit.
Don’t File a Claim If…
- Your deductible is higher than the value of your claim. Of course, your deductible is the amount you have the pay before your insurance kicks in.
- You’ve had other recent claims. If you’ve filed several claims within the year, it could trigger an increase when you renew. You may want to pay the smaller claims out of pocket in an effort to keep your premiums down in the long run.
Don’t let yourself be vulnerable to filing a claim when it wasn’t in your best interest, or not filing a claim when you should have. Talk to your Insurance agent. After all, this is where the value of choosing a knowledgeable, reliable agent comes into play. APA Insurance Services has found that choosing the right policy and the right agent is never quite as appreciated as the moment when they are needed most –that is, time to file!