If your home is damaged in a storm or your car was totaled in an accident, you turn to your insurance company to sort out the financial obligations. Filing a claim in these circumstances is expected; when is it appropriate to pay out of pocket?
Knowing when to file an insurance claim and when to pay out of pocket can be tricky. What you think is substantial damage may be considered the opposite, leaving you conflicted. Here are a few things to remember when filing an insurance claim.
Filing a Claim vs. Paying Out of Pocket
When you file an insurance claim, you ask the company for financial assistance on the loss or damage of your insured property. This can be your car, home, or valuable items. If the insurance company approves the claim, you will receive compensation. However, it’s important to know that insurance companies only cover insured items that were damaged or lost in unforeseen circumstances. This includes but is not limited to vandalism, theft, fire, and explosions.
When To Consider Paying Out of Pocket
You should pay out of pocket if you’ve incurred less than your deductible damage. Even if the damage is slightly above the deductible, consider paying out of pocket. It’s likely not worth going through the process of not being compensated a larger sum. Insurance claims take time to process and can last longer than it takes to complete repairs on your damaged property.
Consider paying out of pocket if you’ve recently filed a claim. Some insurance companies find that filing two claims in a year or three claims in two years is excessive. This can increase your rates, or the provider could choose not to renew your policy.
When To File a Claim
You can file a claim when major property damage costs more than your deductible, if someone sustained injuries, or if the accident involves other parties. You should notify your insurance provider immediately and let them know you plan to file. This way, they can start the process and prepare your compensation.
At Saferoad Insurance, we want our customers to know we care and want them to be financially protected in any circumstance. We offer auto, home, RV, boat, and renter's insurance in Anaheim, CA. For more information, make sure to connect with our agents. We’re always ready to help!