Three Claims Your Insurer Will Love

Insurance ClaimsGenerally speaking, even though your auto insurance exists to pay for damage to your car due to an accident, theft, or weather, your auto insurance company would prefer it if you didn't make claims, and if you do, you're often rewarded with higher premiums at renewal time.

There are, however, a few types of claims that your car insurance provider won't quibble about, and, in fact, may even welcome. Here are three of them:

Claims on other people's insurance.

Almost every state in the country requires drivers to have at least a minimum amount of liability insurance to pay for damage they cause to others. (New Hampshire is the exception to this.) If someone crashes into you, then, you should make a claim for damages on their auto insurance policy, rather than against your own collision coverage.

Not only with doing this save you from having to pay your deductible, but your insurer will be fairly pleased by that decision.

Claims that others must pay.

This is where rental car insurance comes in. If you crash a rental car, for example, and you purchased the rental car company's insurance that will kick in first, and your own collision coverage will act as "excess" coverage only. Alternatively, if you paid for your rental car with a credit card, your credit card company will usually provide a certain amount of automatic auto insurance coverage.

Not only do these types of claims keep your own insurance record clean, but they also keep your auto insurance company happy.

Claims where no money is paid to you.

Any claim that is lower than your deductible is one your insurer will love, because they don't owe you money, but they can still add your claim to your CLUES report (it's a seven-year record of the claims you make) and use it to justify a higher premium later. An example of such a claim is when you get into a minor fender-bender in a parking lot, and the only real damage is cosmetic. It might cost you $500 to fix it, if your deductible is $1,000, filing a claim will hurt you rather than help. Best advice? Don't bother to file these claims at all.

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