Small Insurance Claim | There are times that you are often better off covering the cost of a small insurance claim yourself. Filing an insurance claim can lead to a 20% to 40% jump in your premium, and in the case of a small claim, it may not be 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 Insurance Link. The InsuranceLink database has been created to store the details of 1st party insurance claims and helps insurers fight insurance fraud, e.g. cuts down on duplicating claims, previous claim history non-disclosure etc
The report contains the following information on each claim:
- Policy number
- Your name
- Date of birth
- Property address
- Type of claim
- Description of claim
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—simply, their is no loss.
- Consider that each claim, no matter how small, will stay on your insurance record for many years.
- Your insurance premiums may go up by 20- 40% as you may lose a no claims bonus. Even a small claim can lead to other insurers not quoting for your renewal, or preclude you from changing to a new insurer.
- 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 a high moral 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 help you keep your premiums low.