A method of determining whether you should or should not file an insurance claim is if the incident exceeds your deductible amount for a collision. Deductibles are certain amounts implemented into your insurance policy for collision repair. You have to meet the minimum deductible amount before your insurance company initiates the payment for any damages done.
For example, if you have a $500 deductible, then you must pay for the first $500 worth of repairs. Once that is completed, the insurance company will pay the remaining amount. Make sure you carefully choose your deductible amount because predicting how much something is going to cost to repair is nearly impossible. Factors that contribute to the cost of repairs include:
- Severity of damage to the car body.
- Paint requirements.
- Certain types of materials.
- Difficult time locating the parts.
Overall, it is recommended to file a claim that is over your deductible amount. If you are primarily paying for minor damages, it would help you keep your premiums low without having any repercussions on your driving record. However, if you continuously report accidents, your insurer may consider raising your premiums because they see you as a risk.