Sunday, 28 August 2016

Can Filing a Claim Affect Your Rate?

Owning insurance is a beautiful thing but it is one we do not hope to ever use. As reassuring as it may seem to have a company stand by you through a damage or loss, it just isn’t something we are ready to undertake. In case of damage or a loss, the first things you will be expected to do is to report to your insurer and possibly file a claim.

The strange thing about this is that filing a claim could affect your premium rate in the future. For example, you had to repair some damages in your home and your insurer came through for you. Your insurer would somehow increase your premium depending on the type of claim or your location.

The reason for this is because insurance companies would consider you a risk once you file a claim. If the claim you filed was for a damage or loss which is common, the chances for further repairs is quite high. The company understands you may need further repairs and would inadvertently increase the premium. This in no way discourages you from filing a claim. You just have to evaluate your choices to see if it would be in your best interest to file that particular claim.

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