Thie Single Insurance Mistake Could Be Burning a Hole in Your Wallet

You pay a good sum of money every year towards insurance so that when you need it, it actually works! However, this doesn’t come without caveats. 

Want to know something?

Every time you make a claim, whether it be comprehensive or collision, it goes against your insurance record. The more claims you have, regardless of the amount, the higher premiums you receive. If you have too many claims, some carriers will even turn you away!

Because of how important this is, let’s talk about the two main types of claims and the right moment to file one.

Collision Claims

Collision coverage pays for your vehicle’s damage if you hit an object or another car. Below are some examples of when you can file for an insurance collision claim.

• Your car slides on ice and hits a guard rail.

• You swerve to avoid a squirrel and hit a pole.

• Someone dents your car and drives off.

Comprehensive Claims

Comprehensive insurance pays for non-crash damage, such as weather and fire damage. It also reimburses you for car theft and damage from collisions with animals. Below are some examples of when to file an insurance comprehensive claim.

• You hit a deer and dent your fender.

• A rock cracks your windshield and you need a replacement.

• A hailstorm damages your car.

• A thief steals your car and it’s not recovered.

When Should I Make An Insurance Claim?

So we’ve already established that every time you make a claim, no matter the amount, it goes against your record. Because of this, it’s important to weigh out good situations to use it.

There are times when it’s best to eat the expense out of pocket, or you could be paying for it on the insurance side.

The Deductible Comparison

Every time you have to use insurance, you have a deductible that has to be paid to the insurance company first before a claim can be started. This could be $500, $1,000, $2,000, etc… 

When you’re on the fence about making a claim, it is important to ALWAYS get an estimate for the cost of the damage, recovery of an item, etc… to see how much the cost is versus what your deductible is.

If the cost to have your bumper repainted is $800 and your deductible is $1,000 it doesn’t make any sense does it?

However, if you need a new door and mirror that costs you $4,500 and your deductible is $1,000, this may be a good scenario to use your insurance.

Claim Frequency

What’s most important to take into account is your claim frequency. It’s okay to use your insurance for a new windshield, or your stolen car, or repairing damages. That’s what it’s there for! You do however need to be extremely conscious of how many claims you make.

Claims stay on your record for around 5-7 years. The more claims you have on your record, the more unfavorable you look to carriers, resulting in higher premiums.

As stated prior, if you have too many on your record, there’s a possibility that some carriers won’t even write you. If they do, you can bet it’s going to be costly.

It also worth mentioning that you do NOT have to file a claim directly after an incident occurs. You have 364 days to gather information, estimates, and facts before reaching out to file.

Sherry BermanSherry Berman
17:55 08 Dec 22
We just moved over to e3 with Chris Stone, 1 1/2 years ago. Our house flooded during snowmeggedon in Texas last February. The insurance companies were overwhelmed with phone calls from Texas. Our insurance company was not responding to us on a timely basis, and because of the supply chain shortage, we knew we needed to act quickly. Chris knew who to talk to at our insurance company, and was a total advocate for us and made sure that our needs were being taken care of. Our last insurance agent was the advocate for the insurance company, not us. Chris knows the business inside out. He guided us along the process of what to do. e3 represents many different insurance companies, which gives Chris the ability to guide you into the best policy that meets your needs. He explains the insurance lingo in layman terms, and makes sure that you and your family are protected. My husband and I totally trust Chris to give us the best policy with in our budget.
Andy BermanAndy Berman
21:56 07 Dec 22
e3 Insurance and Chris Stone are simply the best!! After experiencing a flood in our house and a total redo necessary, Chris made the experience completely seamless!! There simply is no one better!!
Alex ThipkhosithkunAlex Thipkhosithkun
19:32 03 Nov 22
I can't say enough good things about Chris at e3 Insurance. He really is an expert in his field and was really helpful and thoughtful through my home and car insurance purchasing experience. But it doesn't stop there. Recently, I was facing a relatively stressful plumbing situation with my newly purchased house and after talking to Chris and putting me in contact with the right people, they had someone come out THAT afternoon-- Amazing!
Austin SandozAustin Sandoz
14:45 06 Oct 22
Chris was a client of mine for a long time. When I reached out to get a quote I was blown away. I found out my brand-new 2022 Jeep was severely underinsured and I had little to no protection for my assets.After comparing my old policy side by side with my new policy he was able to quadruple my coverage and protect my assets for LESS than what I was paying before. When it's done right, it's done right.
Sheryl KlousiaSheryl Klousia
14:29 06 Mar 22
Chris has been extremely helpful in finding us great policies for house and car insurance. He reviews our policy yearly to ensure we are getting the best rate and best coverage… and recommends changing when needed. We are very satisfied with his service… he has saved us so much over the 3 years that we have been with him ! So glad we found him. Our kids all use his services also !

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