Making a Claim

In my opinion, it’s foolish to make a claim if the damage to the car is under $3,000 especially if you have a $1,000 deductible. It would probably be even better to put it on a credit card and pay it off than it would to file an insurance claim.

Then what’s the purpose of having insurance and paying the premiums?


If you total your car. Also for liability coverage. It’s meant for significant claims. The low deductible ($500, $1,000, $2,500) you choose would be to decrease the amount you pay in the event of a big wreck; it shouldn’t be used as an excuse to file a small claim.

This way, you also have more money to have higher liability limits, like $500,000 or $1 million bodily injury coverage instead of having lower liability limits.

If I’m going to decline to file a claim for anything under $3,000, then I expect that to be reflected in my premiums. They’re setting those premiums assuming that if I get into a wreck costing a nominal amount over my deductible, I’m going to be coming to them expecting money. I should be paying less if that won’t be the case.

Why are you advocating that I pay for something I do not intend to receive?


You could choose a larger deductible (aka $1,000 or $2,500) so that it is reflected in your premiums.

Because if you file 1 claim, you’re likely to have a 40% increase and if you have a really bad year and have 2 claims, you’ll have a 90% increase. This keeps your premiums lower and/or even better keeps your insurance from getting cancelled or not renewed.

You’re discussing a $3,000 claim with a $1,000 deductible. That’s what I’m addressing. If you want to leave $2,000 on the table, that’s fine. But I’m not going to do that. I expect to get what I pay for.


You are really off base here . How many people could put 3000.00 on a credit card and pay it off the next billing period . And at the card interest rates it makes no sense to pay it off by monthly payments.


You would have to pay it off pretty quickly like 6 months or so. I think the interest rate of your car insurance premium’s increase would be higher than the CC interest rate.

Okay and that’s your choice. But your premium increase might be higher than what you receive.

I’d personally rather have the cheaper insurance rates than to receive $2,000 from the insurance company. I could be wrong, but I perceive that (for myself) to be foolish.

$2,000 is a tough area because it’s a price point where you may be better (or worse) off making a claim.

Using this 3000.00 number if I file a claim and my insurance goes up 20 percent that is only 140.00 a year and it will drop back after a no claim period.


Good point. If it goes up 40% a year, though, it will be $280 higher or $840 for 3 years in total, still lower than paying the additional $2K out of pocket. Thanks for clarifying. I was thinking 41% of $1,400 or $574 and thus it would come to $1,722 after 3 years. I was also thinking if someone got not-renewed after one claim and thus only could get really expensive insurance for the 3 year period.



Great article and I agree. If you’re involved with someone else, you’re also likely well above $3,000 even for a fender bender. Only if it’s your car is it reasonably possible to be below $3,000.

might be higher” are the critical words – and that “might” depends on each person’s insurance company AND history with that company

IOW, your opinion (third word in your original comment) is only that – no one can stop you from having it, AND no one has to follow it

if that is an annual premium of $1400 with a $1000 deductible for one vehicle, it strongly suggests that you pose an unusual risk, like you are a young male driver (or have very expensive insurance for some reason)
and if it is for more than one vehicle, then your application of a theoretical 41% increase to the entire premium for a claim on one vehicle/driver seems imprecise

2 drivers, 2 vehicles.

Agreed on both the “MIGHT” and the your opinion.

then what is your basis for a 41% increase to the entire premium due to a claim on one vehicle/driver?

Fear, concern, speculation, conjecture.

I don’t know where this came from but good luck with getting body damage under $3000. Like I said before a lady backed into me in the drive-up. Bumper cover, headlight, a little fender and hood ding and the bill was $3000. Her insurance paid for it and they did a nice job. The one about ten years ago was deer damage. Hood, fender, headlight and $2000. Considered an act of God-no deductible and insurance paid. Also $1000 in hail damage. Act of God again-no deductible and insurance paid it all. I don’t remember ever having damage where I was at fault so not really sure what I would do.

My wife was driving in sandals, got her right foot tangled in the pedals and could not get her foot off the gas and hit two parked cars in a supermarket parking lot and our car kept chewing at the other two cars for quite a while before it occurred to her to turn off the key.

Clearly 100% her fault. $5700 damage to our car, we were never told the damage to other cars and we had not been with company long enough to earn accident forgiveness.

We got a $49 surcharge on our $400, six month bill for 3 years. So, about 12%

If you are facing a 41% increase for a $3000 claim, there is something drastically wrong.