Every responsible car owner needs to have auto insurance since it covers your expenses in case of vehicle damage. However, your insurance rates will vary depending on a number of factors such as:
• Driving history
• Driving experience
• Driving record
Additionally, the number of claims you make each year can adversely affect your premium rates.
What is an insurance claim?
An insurance claim is a formal request made to your insurance provider for compensation or coverage for a covered policy event or loss. Your insurance company takes time to validate your claim, and upon approval, they issue payment to you or the authorized party.
However, filing auto insurance claims could potentially raise your premium rates because it shows you are a risky policyholder. Here are some mistakes you can avoid when filing your auto insurance claims to ensure your premium rates remain low.
1. Filing a claim when you don’t have to
Not all accidents require compensation from your insurance provider as some may cause minor damage to your vehicle. For example, if your side mirror goes missing, you can easily replace it out-of-pocket, without reporting it to your insurance company.
Remember, the fewer claims you file, the better your insurance rates will be. Therefore, preserve your claims for major accidents that cause substantial damage to your vehicle.
2. Failing to notify your insurer immediately
When it comes to major accidents, it’s vital to inform your insurer immediately since claims are easier to adjust when the evidence is fresh. Moreover, if you fail to notify your insurance company of an accident within a specified period, they may refuse to make a payment.
This is because they believe the information can be falsified or exaggerated within this time, to receive more money from your claim.
3. Not contacting the police
Most auto insurance companies only deal with auto insurance claims that involve the police since they can acknowledge that the accident occurred. Therefore, always contact the police after an accident and ensure you have a copy of the police report as it contains vital information such as witnesses.
Need auto insurance?
Contact All Star Insurance today to get cheap auto insurance Killeen, Tx.