How Do Comprehensive Claims Affect Your Car Insurance

There are two types of car insurance deductibles: comprehensive and collision. Comprehensive insurance offers protection against damage caused to your vehicle by vandalism, hit-and-run, hitting an animal, or acts of nature such as hail or wind damage.

The collision portion of car insurance covers damage caused to your vehicle due to a collision with another car while on the road.

When filing a comprehensive claim, any damage that occurs must be defined as not-at-fault if you strike another object. For instance, if a dog runs out in front of you and you swerve to miss it, but hit a guardrail or telephone pole instead, your comprehensive insurance will cover the damage to both your car and the pole or guardrail.

All comprehensive claims are subject to a deductible. This deductible is the amount you select when you purchase the car insurance policy. Typically, comprehensive deductions range between $500 and $1500 per incident.

While most people opt for the $500 deductible, this is not always the best option. Generally, when you select a lower deductible, your car insurance premiums cost more. You can save up to 20 percent off your car insurance rates by electing to choose a higher deductible.

Comprehensive claims do not affect your insurance premiums, but collision claims do. However, if you frequently file comprehensive claims, it will impact your car insurance premiums. The thing is every insurance company has their own set of limits. Some will allow you to file only one comprehensive claim before they increase your rates. Others will allow you four or more before they increase your rates.

It’s best to find out upfront what the comprehensive limits of your insurance carrier are. While you may not have much control over a dog running out in front of you, or someone stealing or vandalizing your car, if too many of these occurrences arise, your insurance carrier may flat out cancel your policy.

Car insurance companies track every claim that is filed. They use this information to identify trends, which assists them in determining their rates. These trends might show an increase in vandalism in your area. Or, there may be an indication of strange weather patterns which has led to a significant increase in hail or wind damage to vehicles in your zip code.

Each time you file a comprehensive claim, the information is stored into a C.L.U.E. report. The Comprehensive Loss Underwriting Exchange report includes a five year history of losses associated with an individual and his/her personal property.

Some insurance companies review the CLUE report prior to accepting you as a policyholder. Several will turn you away if you have filed three or more comprehensive claims within a 36-month period.

One of the biggest mistakes you can make is to file a false comprehensive claim. Not only will filing a false claim get you banned from purchasing car insurance, chances are you will do a little jail time as well. Filing a false claim is considered insurance fraud and considered a felony offense.