Most auto insurance companies offer discounts as rewards for drivers who did not file any claims for a specific period of time. Since filing no claim is a rewarded behavior does it follow that filing claims are punishable ones?
Purchasing auto insurance is aimed at protecting yourself and your car from any troubles a crash can bring. You will get this protection from your provider when the time comes for you to file a claim. It is the main purpose of having some coverage; to make use of it thus no one should be afraid of filing claims. This is what you have been paying for by the way.
Nonetheless we could not escape the fact that there are claims that can affect us negatively. People file claims for different reasons. Some are because of some major accidents while some come for assistance even to small things. Regardless of the nature of what made you file the claim keep in mind that everything will go on your driving record. Even little violations go straight to your record thus being careful is still the best thing to do. This reality posts more difficulty on your part given that your driving record can largely influence your insurance premium.
The kind of your claim can also influence your insurance rate further. Filing a claim can be triggered by different reasons or type of accidents thus the insurance company will have to determine whether it was about neglect, carelessness, plain accident or willed. It is also a big concern to know whose fault was it.
Let us take filing a Collision claim for example. If the accident that happened is really not your fault making you the victim of the collision your car insurance claim will still be secured moreover this will less likely to hurt your insurance rate. However if the collision was your fault expect that your claim will change the figures you are paying for your coverage. Normally an additional of 20 percent will be accorded however this may vary depending on the gravity of the damages the accident caused. If the damages were really too much or if you caused serious accidents frequently your insurance policy might be cancelled. A cancelled insurance policy is another thing you do not want to have for it will go straight to your records. In such cases you might find it hard to purchase another insurance coverage. Also you have to keep in mind that most insurance companies only allow one collision claim.
