Insurance is necessity. We have insurance so that when something happens, we do not have to pay a hefty bill. However, just because you have insurance, doesn’t mean you should use it for everything. Some insurance companies may penalize you if you use your insurance too much. Here are a few suggestions as to when you might not want to file a claim.

How much is your deductible? If the damage to your home or vehicle is less than your deductible, your insurer is not going to pay on the claim. For example, if your deductible is $500 and your home is burglarized, was the value of the items stolen more or less than $500? If it is less, then your insurer will not pay for the lost items. Even if the value was slightly more than $500, making a claim for a couple hundred dollars may not be worth it in the long run if your premiums go up after a claim.

When was the last time you made a claim? When tragedy strikes, you should feel confident in your insurance company to come to your rescue and help. If you have made numerous claims in the last five years, some insurers may make it very difficult to file another claim. Your insurance claim history has a large influence on your ability to get insurance and the premiums that you pay.

Could the issue have been addressed earlier? Did you know about that leaky sprinkler head in your lawn before your basement flooded? Your insurer is going to want to know the history of the issue when you make a claim. If it was something that could have been addressed before, your insurer may question the validity of the claim.

Still not sure if you should file a claim? Your insurance agent at Palm Desert Insurance are available to have that discussion. Call us today at: 888-880-8872

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