Filing an Insurance Claim vs. Paying out of Pocket


Vehicle Damage Picture

After an accident, it can be difficult to clear your head and make the right decisions. Dealing with car insurance companies can be daunting, but paying for repairs out of pocket can get expensive quickly. If you are debating on filing a claim with your insurance, then consider the following situations that may pertain to your particular circumstances.

What Happens When You File A Claim

Filing a claim with your insurance means that you are asking them to pay for damages to your car. If you have a deductible, then you have to pay the amount of that deductible up front before your insurance will pay the rest of the costs for repairs. After the deductible is paid, insurance will cut a check for you or the repair center for the damages. Remember, if you are at fault for the wreck, you may see some changes to your insurance rates. Some companies are more lenient that others, and it will also depend on the type of coverage that you have.

When to File A Claim

If the price to repair your vehicle is more than your deductible, then it is appropriate to file a claim to save you some money. Any costs for the repairs beyond the deductible are paid in full by your insurance. The second reasons to file a claim, and possibly the most important, would be if you were at fault and caused physical damage to another driver’s car or to the driver themselves. Insurance can help you with any legal negotiations with the other driver and their insurance company.

When Not to File A Claim

Don’t try to file a claim when your deductible is higher than the cost of repairs. Your insurance may even turn you away if you try. You also do not want to file a claim if you can afford the repairs. This is because regardless if you are at fault or not, your insurance rates may rise. Again, this is going to depend on the type of insurance you have and the company you have it through.

There can be a lot of details that convolute the decision between filing a claim vs. paying out of pocket. Whatever you decide works best for you, you can count on a free estimate for auto repair services from Class Auto Center. We are you local Certified Collision Center in Long Beach, CA and offer collision repair services in Los Angeles County, CA. Contact us now to set up an appointment, or if your are in the L.A County or Orange County area, come down and visit our facility today!


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