When It Makes Sense — and When It Might Backfire
Something unexpected happens. A fender bender. A roof leak. A broken window.
It’s not catastrophic, but it’s enough to make you pause and ask:
“Should I file a claim… or just handle it myself?”
It’s a good question — and one that deserves a smarter answer than just “it depends.”
Let’s walk through what really matters when making this decision, so you’re not caught off guard later.
What’s the Purpose of Insurance?
At its core, insurance is designed to protect you from significant, unexpected financial loss — not necessarily every small inconvenience.
That’s why understanding when to file a claim (and when not to) is just as important as having coverage in the first place.
Filing a Claim: When It’s Usually a Good Idea
The damage is significant
If the repair cost is well above your deductible — especially if it’s thousands of dollars — insurance is doing what it’s meant to do.
Someone was injured
Even if the physical damage is minimal, injuries complicate things fast. Always file a claim when people are hurt.
There’s potential liability
If someone else’s property was damaged or someone could claim you were at fault, you’ll want your insurer involved early.
You’re unsure who’s at fault
Filing a claim starts the formal process of determining responsibility — and protects you from assuming more risk than you should.
When You Might Not Want to File a Claim
The cost is near or below your deductible
If your deductible is $1,000 and the repair will cost $1,200, you’re only getting $200 of value — but still risking a rate increase.
It’s a small, first-time issue you can handle easily
For example: a minor windshield chip, scuffed bumper, or replacing a lost phone that’s not very expensive. These kinds of claims can sometimes raise your premiums more than they help.
You’ve filed claims recently
Insurance companies watch frequency. Too many claims — even small ones — can label you as “high risk,” leading to higher premiums or even non-renewal.
Important Misunderstandings to Clear Up
“It’s always worth filing if I pay for coverage.”
Not always. Insurance is there to protect against significant loss — not necessarily to break even on small costs.
“My rates can’t go up if I’m not at fault.”
While fault does matter, any claim can impact your premium. Sometimes even weather-related ones.
“If I don’t file now, I can always do it later.”
Most policies have a deadline for reporting — waiting too long could mean your claim is denied.
Smart Steps Before You File
- Get an estimate
Know the actual cost of repairs before deciding — don’t guess. - Check your deductible
If it’s close, weigh the pros and cons of filing. - Call your agent — not the 1-800 number
A good agent can walk you through the scenario without officially filing a claim. You’ll get clarity without committing. - Consider your history
If you’ve filed multiple claims in the past few years, it may be wise to hold off — even for medium-sized losses.
Bottom Line
Filing a claim isn’t always a simple “yes” or “no” — it’s a strategic decision that depends on cost, risk, and long-term consequences.
Insurance is a safety net, but using it wisely can keep that net strong (and affordable) when you truly need it most.
