Should you file an insurance claim for minor damage?

Insurance is for big problems, not little ones. Insurance experts recommend against filing a home or auto insurance claim for anything under $1,000. If you do the math, you realize it’s simply not worth it considering the cost of the deductible (from $200 to $500) and the resulting hike in your premium. 

Other factors come into play as well for auto claims, such as the age of your vehicle and the type of insurance policy (do you have comprehensive or just civil liability insurance?). The older your car, the more likely the claim will be expensive—and turn out to be a “bad investment.”

Consequences of a home insurance claim

Filing a claim for damage to your house, condo, or apartment will definitely increase your home insurance premium for several years. Plus you’ll no longer be eligible for the “no-claims discount” offered by some insurers.

Considering changing insurance providers? A history full of claims might lead potential insurers to charge you more or even refuse to insure you. Here are some tips to save.

Looking for a contractor you can trust to repair damage to your home? You’re sure to find one in our list of CAA-Quebec Approved Suppliers. They’re selected based on stringent criteria and they offer benefits to our members.

Consequences of a car insurance claim

The consequences of a car insurance claim will depend on how bad the damage is, your driving record, and your liability. The more you claim, the more likely your car insurance premium will go up next time you renew.

The way your insurer sees it, a driver with a string of accidents over a short period of time probably isn’t just having a run of bad luck. The driver might be redirected to specialized insurers. To avoid such a situation, some insurers offer additional coverage called “accident forgiveness” or “claim forgiveness.” Check if your insurer offers it and whether you’re eligible.

Remember that whether or not you’re at fault in your accident or file an insurance claim, you can always choose where to have your car repaired. CAA-Quebec Approved Auto Repair Services include body shops, windshield specialists, and more. Plus members get discounts and other perks.  

Do you need to report an accident even if you don’t file an insurance claim?

Absolutely. Everyone with insurance has a record in the FCSA, Quebec’s centralized auto claims database. Every time you file a claim, it’s stored there for six years. If your record is squeaky clean, you pay less. If you’ve made a lot of claims in recent years, your premium will probably be higher. 

Of course, reading this you may be tempted to not report an accident if you’re planning to pay for it yourself. But even if only the other person reports it, the accident will still be added to your record in the FCSA. Then the record will only reflect the other driver’s version of events, which will be used to determine the liability for both of you. When you report your accident yourself, you ensure you’ll find your version of the facts in your record. So it’s always better to do so, even if you don’t file a claim with your insurer.