How do loss claims affect insurance rates?

Question

How do you know when you should file a loss claim on your homeowners policy versus just eating it? Are there any rules of thumb? A friend had his laptop stolen out of my car ($2,800). What will happen to my insurance premium if I file the claim on my homeowner's policy? Not sure what to do....

Answer 1

The best person to answer this question is your agent.

That said, claims histories do affect premiums but exactly how varies from insurer to insurer. Insurance is a competitive business so what one insurance company may consider a high risk, another may not. Do note that insurance exists to cover the risk of catastrophic loss - loss on an order of magnitude that an individual would not be able to handle on their own. (Such as if your house burned to the ground.) Small claims are extraordinarily expensive and time consuming to insurance companies. Such claims consume an adjuster's time, the insurance company's resources and a small payout. Small payout, yes, but these claims are many times more frequent than major claims. So many that insurance companies generally set up departments that handle only small claims.

This is why making a small claim could result in higher premium or a cancellation upon renewal. Insurance companies compete to get and retain better insureds, meaning the ones who do not make such small claims and who live in areas and circumstances that are less likely to result in claims. Having a portfolio of business that includes a higher percentage of such insureds makes an insurer more profitable, which in turn makes them more competitive in the market place (meaning able to offer lower prices).

In your particular case, consider your own history. Do you have a history of frequently making small claims? Are you in a high risk area? You did pay for insurance so you should use it when you need it. Just note that retaining costs is one of the best ways to get lower premium rates. Retention can be accomplished by not making a claim or taking a higher deductible.

Answer 2

PERSONNALY? If the claim is more than or equal to, the deductible, DOUBLED. So, if you had a claim of $500, and your deductible was $250, then I would file.
I dun't THINK the premiums would go up, if something were stolen. But, you can ask your insurance company.
Why get the insurnce if you don't file for a claim, if you have a claim?

Answer 3

a million. complete covers flying debris that's maximum probably what brought about the windshield injury. 2. The itemizing of claims filings is held via the state and the coverage companies basically record this and does not have the skill to 'unreport' it 3. maximum no longer likely, besides the undeniable fact that it ought to be properly worth a call on your insurer/agent to double-examine 4. Claims submitting historic previous is used via insurers with a view to tell how probably you're to report a declare. maximum are forgiving of in basic terms one declare (exceedingly if it became a small one), yet you nonetheless would word a upward push in top rate with the aid of it.

Answer 4

Pay now or pay later. Insurance is an illusion.

Answer 5

Ask your agent.