One of the most common questions I get is whether a client should file a claim for a minor accident, especially if they are worried their rates will go up.

The reality is that any time there is a claim on your policy where you are at fault, there is a possibility that it will impact your rates. However, insurance exists to be used, so the decision really comes down to math.

When people call me for advice, I tell them to look at their deductible versus the cost of repairs. If you get into a minor collision and the damage is $1,500, but your deductible is $1,000, the insurance company is only contributing $500. In that scenario, it might be worth writing a check yourself rather than risking a rate increase.

However, if the damage is significant, like several thousand dollars, then it is absolutely worth making a claim.

There is a very specific “rule of thumb” regarding claims that everyone should know. We generally say that three claims within a three-year period puts you at risk of being non-renewed by the insurance company. That counts for anyone on your policy, whether it is you, your spouse, or your teenager.

I have had conversations with clients who already had two claims, and we had to make the hard decision to eat the cost of a third minor accident just to keep their policy active.

My best advice is to call our office before you call the claims department. We can look at the damage, look at your history, and help you weigh if it is worth filing the official claim.

Sometimes, saving your policy history is worth more than a small payout.