Small Insurance Claim | You are often better off covering the cost of a small insurance claim yourself. Filing an insurance claim can lead to a 15% to 20% jump in your premium. In case of small claim it is not worth it.
There are a number of factors that influence the costs of your insurance policy, one of them is the total value and frequency of your claims.
Insurance companies— every one you’ve ever used—report all claims, even those they formally denied, to a so called Insurance Link. The InsuranceLink database has been created to prevent insurance fraud, e.g. inflating your insurance claim.
The report contains the following information on each claim:
- Policy number
- Your name
- Date of birth
- Property address
- Type of claim
- Description of claim
- Date of loss
- Decision (approved, declined etc)
- Settlement Amount paid
If you wish to establish what information, if any, is held about you on Insurance link, you can do so by following the procedures outlined on their website. If there are any inaccuracies, you can also apply via the website to have them corrected.
Before you file a small insurance claim, check whether it is worth it
- Never submit a claim that is smaller than the excess—mostly because it won’t be covered.
- Consider that each claim, no matter how small, will stay on your insurance record for many years.
- Your insurance premiums may go up by 10 – 40% as you may lose a no claims bonus. Even a small claim of €1000 can lead to other insurers not quoting for your new business.
- Think about the last time you made a claim. If you’re a consistent claimant, you’re going to get slammed on premiums. It isn’t unusual for a home owner to make up to two claims in a 10-year period, but more than one or two in a three-year time span and the alarm bells go off and you will be classified as high risk.
Our advice is to keep your no claims bonus and don’t make a claim, unless the resultant damage and payout is going to justify the increase in premiums. Keep it for when you need it.
If you suffered a loss and need a FREE professional advice on whether you should file an insurance claim, call us. Our experienced Loss Assessor will help you make an informed decision and possibly help you keep your premiums low.