Think twice before filing auto insurance claims often!


The most important affect of filing for auto insurance claims often is that your premium amount keeps going up the more times you file for claims. So Why does this actually happen?

If you are going to be filing for reimbursements very regularly, it means that you have been involved in a lot of accidents. And also, since the claims have been filed on your behalf, it means that you are at fault in all these accidents.

Auto insurance claims are a little complex to understand. We shall now discuss how it decided as to who is liable to pay compensation in case of an accident. It is important that we understand this before we go into the disadvantages of repeatedly filing for auto insurance.

If you have a first party or fully comprehensive auto insurance policy, you are eligible to claim compensation under any situation. Even if you are not the party at fault, you can claim for reimbursement. You can even claim for reimbursement in cases where you bang your car against a tree or pole or any other inanimate object that has no insurance. But the fact remains that if you claim for insurance, your premium is going to go up.

But if you have third party insurance, then you cannot claim for reimbursement in case you are not the party at fault. You can file for an auto insurance claim only when you are the party at fault. Here, you need to show proof of fault. This could be by asking witnesses to second your claim or show some other electronic record of evidence like a camera tape or a voice recording tape.

So why would someone claim reimbursement under first party insurance if it is going to rise up their premium?

In case the other party does not have insurance coverage or if the other party is underinsured and you have met with a serious accident, then there is no other way but to file for damages under your insurance policy. But you have to first decide as to whether it is going to be better this way of whether you should take it to court.

Your auto insurance agent will usually be able to guide you as to which option is better. it is also possible that you will need your insurance policy to cover your claims while you fight your case in court, Because not all accidents are open and shut cases. There are a lot of people with time on their side who really will not mind spending every living moment in court! In such cases you will need your auto insurance to kick in so that you can pay for immediate emergency care, serious auto damages and litigation charges.

But the fact remains that no matter where you stay in the United States of America, your auto insurance premium will go up when you file a claim. This is obviously because the insurance company will feel that you are more prone to be involved in accidents. In such situations you can try convincing them that you are making amends by registering yourself in a defensive driving course. This way you will not only learn how to avoid accidents, you can also bolster your case saying you are serious about learning how to drive safe.