7. Filing Small Claims That Aren’t Worth It
Not every fender bender needs to go through insurance. Filing a claim for a minor scratch or small dent can trigger a rate increase that costs you more over the following years than simply paying for the repair yourself would have. Insurers track claims frequency closely, and even a single small claim can follow you across renewal periods and even across companies if you switch insurers.
Before filing a small claim, do the math. Compare the repair cost to the potential premium increase over the next three to five years, since that increase is often applied annually and compounds over time. Sometimes paying out of pocket, even for a repair costing several hundred dollars, is the smarter financial move when weighed against years of higher premiums.
Quick tip: Ask your agent directly how a specific claim amount would likely affect your premium before you file, since many insurers can give you a rough estimate on the spot.