Pros and Cons of Using Your Own Insurance Carrier For Your Car Damage After An Accident 

Dealing with car damage after an accident can be stressful. While using your insurance carrier to handle your property damage after a car accident might seem simple, it’s not always easy. In 2022, 4.54% of people with collision insurance filed claims, with the average claim cost reaching $6,551.

As cars become more advanced, repair costs continue to rise. This makes it crucial to consider the pros and cons of using your insurance carrier to handle your property damage after a car accident. Although using your insurance can expedite the process, it's important to weigh the good and bad sides before making a decision.

Key Takeaways

• Using your insurance can make claims faster. This helps fix your car sooner.

• Filing a claim might raise your premiums later. Think about future costs.

• Check your deductible; it decides what you pay before insurance helps.

• Look at the damage; small problems might not need a claim.

• Know your policy to see what is covered. This avoids surprises.

Pros of Using Your Insurance Carrier for Property Damage Claims

Faster Claims Process

Easier communication with your insurance company

Filing a claim with your own insurer is often simpler. You already know them, so talking to them is easier. They focus on helping their customers quickly. This means you get updates and instructions without much hassle. It’s less stressful than dealing with another driver’s insurance.

Fun fact: Quick responses are the second most important reason people give five-star reviews. Good communication from claims adjusters helps keep things moving smoothly.

Faster results than using another driver’s insurance

Using your own insurance can make things happen faster. Many companies now use smart tools to speed up claims. For example:

• Some insurers have cut claim times by 40% using technology.

• Others handle over half of claims automatically, saving weeks of waiting.

This helps you fix your car and get back to driving sooner.

Easy and Familiar

Working with a company you trust

Filing a claim with your own insurance feels less scary. You know how they work, and they know your history. This makes the process easier after an accident. You don’t have to learn new systems or talk to strangers.

Helpful online tools and support

Most insurance companies have easy-to-use online tools. These let you upload damage photos, check your claim, and schedule repairs on your phone. If you need help, customer service is just a call away.

About 80% of people say they’d change insurers if they didn’t get fast help. That’s why companies work hard to give quick and reliable support.

Coverage for Uninsured Drivers

Protection from drivers without enough insurance

Accidents with uninsured drivers can be tough. Your insurance can cover the costs if the other driver can’t. This means you won’t have to pay for damage yourself.

Avoiding long arguments with the other driver

Using your insurance also saves you from fighting with the at-fault driver. Your insurer takes care of the costs while you avoid waiting for the other person to admit fault. This lets you move on faster and worry less.

Cons of Using Your Insurance Carrier to Handle Property Damage

Potential Premium Increases

Risk of higher premiums after filing a claim

Filing a claim with your insurance company after an accident might seem like the easiest option, but it can come with a hidden cost. Once you file a claim, your insurer may see you as a higher risk. This could lead to an increase in your premiums, even if the accident wasn’t your fault. You might think, “It’s just one claim,” but insurers often look at patterns. A single claim today could affect what you pay tomorrow.

Impact on your insurance record

Your insurance record is like a report card for your driving history. Every claim you file gets added to this record. If you file multiple claims, it could make it harder to get affordable rates in the future. Some insurers might even hesitate to renew your policy. It’s worth thinking about how filing a claim now could impact your long-term relationship with your insurance company.

Deductible Payments

Out-of-pocket costs before coverage kicks in

When you use your own insurance to cover property damage, you’ll likely need to pay a deductible first. This is the amount you agree to pay out of pocket before your coverage starts. For example, if your deductible is $500 and the repair costs $1,500, you’ll pay the first $500, and your insurer will cover the rest. While this might not seem like much, it can feel like a burden if money is tight.

Financial burden depending on deductible amount

The size of your deductible matters. A higher deductible means lower monthly premiums, but it also means more out-of-pocket costs when you file a claim. If the damage from the accident is minor, you might end up paying most—or even all—of the repair costs yourself. This makes filing a claim less appealing in some cases.

Limited Control Over Repairs

Insurers may require specific repair shops

When you file a claim, your insurer might direct you to specific repair shops. These shops are often part of the insurer’s network, which helps them control costs. While this can be convenient, it limits your options. If you have a preferred mechanic or body shop, you might not get to use them.

Restrictions on parts or repair methods

Insurance companies often have rules about the parts and methods used for repairs. They might insist on using aftermarket parts instead of original ones to save money. While these parts can work just fine, they might not meet your expectations. If you’re particular about how your car gets fixed, this could be frustrating.

Tip: Before filing a claim, ask your insurer about repair options and restrictions. Knowing what to expect can help you decide if it’s worth it.

Things to Think About Before Filing a Property Damage Claim

How Bad is the Damage?

Small damage might not need a claim

Not all damage needs an insurance claim. If it’s just a small dent or scratch, you might pay for repairs yourself. This can stop your premiums from going up. It also keeps your insurance record clean, which helps keep your rates low.

Big damage may need insurance help

Serious damage, like a broken windshield or smashed bumper, can be costly. In these cases, using your insurance can help cover the expense. For example, wind and hail damage make up 39.4% of claims, with an average payout of $12,913. If repairs are expensive, filing a claim makes sense.

Who is at Fault?

Fault affects your choice

Who caused the accident matters. If the other driver is clearly at fault, you might use their insurance. But if fault is unclear or shared, filing with your own insurance might be better. This ensures your damage gets fixed without waiting for arguments to end.

File with your insurer if fault is unclear

If it’s not clear who is at fault, take photos and videos of the damage. Write down everything that was harmed. This helps your insurer understand what happened and speeds up the process. Filing with your own insurance can save time and reduce stress.

What Does Your Policy Say?

Check coverage and deductible

Before filing, look at your policy’s coverage and deductible. Know what’s covered and how much you’ll pay out of pocket. For example, if your deductible is $1,000 and repairs cost $1,200, you’ll only get $200 from insurance. This helps you decide if filing is worth it.

Future premiums might go up

Filing a claim now can affect your future rates. Insurers often raise premiums if you file multiple claims. Reading your policy helps you decide if using your insurance is the best choice.

Tip: Always take clear pictures of the damage and check your policy deadlines. Good records and filing on time make the process easier.

Deciding to use your insurance company for car damage isn’t simple. It can be fast and easy, but it might raise your premiums or cost you money upfront. Consider how bad the damage is, who caused the accident, and what your policy includes before choosing.

📊 Did you know? Auto insurance claim losses have grown over time, hitting $259 billion in 2023.

Take clear pictures of the damage and ask experts for advice if needed. This helps make the claims process easier and ensures you pick the best option for your needs.

If you have been injured in a car accident and need an attorney, call our Fort Myers, Cape Coral, Estero, Bonita Springs, and Naples Auto Accident Lawyers at Pittman Law Firm, P.L. today for a free consultation. 

FAQ

What happens if I don’t file a claim after a car accident?

If you skip filing a claim, you’ll handle all repair costs yourself. This keeps your insurance record clean but could be expensive. Always weigh the damage cost against potential premium increases before deciding.

Can I choose my own repair shop?

Yes, but your insurer might prefer specific shops. If you want to use your mechanic, check your policy first. Some insurers limit coverage for non-approved repair shops.

Will my premiums always increase after filing a claim?

Not always. If the car accident wasn’t your fault, your premiums might stay the same. However, filing multiple claims or being at fault could lead to higher rates. Review your policy for details.

How long does the claims process take?

It depends on the insurer and the damage. Filing with your own insurance usually speeds things up. Some claims are resolved in days, while others might take weeks. Using online tools can help you track progress.

Should I file a claim for minor damage?

For small dents or scratches, paying out of pocket might be smarter. Filing a claim could raise your premiums, even for minor issues. Save claims for significant damage to make the most of your coverage.

The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute an attorney-client relationship.