Knowing When to File and When not to File
Insurance policies are very helpful for an individual, business or an organization, for they insure that your damages are covered in case any unfavorable accident happens. However, sometimes confusion arises when you have to file an insurance claim. Some people file a claim even when the damage is minimal. The basic purpose of insurance is to minimize your damages. However, filing a claim on every minor scratch to your car or a simple cold fever will definitely affect your reputation with the insurer and even increase future insurance costs.
The best thing to do when filing an insurance claim is to fix a lower limit of filing the claims. This will obviously depend upon the amount of premium you pay and the maximum amount covered by your insurance policy. Some insurance companies lure the customers towards their policies but at the time of claiming, they end up raising questions, which becomes very irritating and frustrating. It is always advisable to compare different insurance policies by looking for free insurance quotes. For example, if you are buying an expensive car, make sure you have as many free car insurance quotes as possible with you. By having these free auto insurance quotes you will be able to compare the benefits of different insurance policies and especially their damage coverage methods.
Once you have read the repayment clauses, it will be an easy task for you to decide about the right kind of insurance policy for your vehicle. Accidental, natural calamity and theft related claims should be reported at the earliest to the insurance company. In such situations, the insurer stands no chance and he has to pay for your damages. However, if the damage is minor or negligible, make sure you do not run towards the insurance office because this might affect your renewal or it may increase the premium cost. A clean claim history and a good insurance company will definitely ensure that you are paid for the damages done.
July 01, 2010, Posted by Rainy Day Mitch