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Should I file small claims on my AZ auto insurance policy?

Posted on: January 12th, 2010 by admin

Arizona Automobile InsuranceOne of the most common reasons that people decide to shop around for auto insurance is because their rates jumped up. Either due to a ticket issued to them, an accident or any other type of claim. Even though most people think this out of their control, there are situations when you have a choice. I want to talk about claims for when you collide with an object that is not another driver, so no other parties involved. For example, you are pulling into your garage which is normally a tight fit but this time you think you have more room than you actually do then…bam…you hit the garage causing damage to your vehicle. In this situation you have two choices. The first is to call your insurance company and make a claim on your AZ auto insurance policy. The second is to assess the damage and pay to have it fixed out of pocket. Most people think to make a claim to have their AZ auto insurance policy pay for it right…not always. Let me explain, let’s say that when you ran into your garage you cause $900 worth of damage. If go with option one and file a claim, you are susceptible to the deductible. So let’s say you have a $500 deductible that means the insurance company pays $400 and you pay $500 out of pocket, better than nothing right? Well since you just filed a claim now the insurance company reclassifies you to being a risky driver since you just filed a claim. They decide to raise your rates by $300 for the next three years. So going with option one you paid $500 out of pocket to have your vehicle fixed, then $900 in the raise in insurance premium over the course of 3 years. So that minor run in with your garage ended up costing you $1,400. What about option two? In this case, you take your vehicle into the shop pay the $900 out of pocket to have your vehicle fixed and reserve your AZ auto insurance policy for the situations when you do not have a choice but use it. This is just a hypothetical example but my point is for those small claims were there are no other parties involved before you decide to make a claim think about the long term ramifications, it could cost you!

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