People choose to purchase automobile insurance to ensure financial protection in the unfortunate event of theft, auto collision, or other incidents that may cause damage. However, they often do not have complete knowledge of making a claim which is why we frequently get people asking us whether they should file a claim for their car damage and if it will have any adverse impact on their policy. The answer depends on the situation, and the result is different for each claim. This is because of the following:
- Specific provincial laws and regulations influence each type of insurance.
- Every insurance company is different, and their rules, rates, and practices vary.
- Your claim history and driving records will have a significant impact.
Our experienced auto insurance brokers have put together this guide to filing an insurance claim to help you understand the details.
Reporting Any Loss to Your Insurance Company
If you have suffered a loss, whether because of theft or collision, it helps to report it to your car insurance company as soon as possible. The auto insurance brokers will explain your policy’s coverage and handle your claim. In addition to this, it helps to keep in mind the following factors when filing a car insurance claim:
- The Size of Your Loss
If the amount of your loss is not substantial, you may want to reconsider submitting the claim. This is because if the damage is not substantial, the cost of making a claim may exceed the money you will receive from your insurance company.
- Your Deductible
A deductible is an amount you pay towards your loss, excluding the balance amount that the insurance company will pay. Depending on your situation and the type of loss, your claim may also cause an increase in your rates. It helps to talk to your car insurance broker about these details so you can make an informed decision.
Impact of a Claim on Your Auto Insurance Policy
- When You are at Fault
Your insurance rates may be affected when you are fully or partially responsible for an accident, or if you lend your car to others and they cause a collision. If you have optional coverage for collisions and are wholly at fault for the damage to your car, a standard deductible of $500 applies in Ontario, unless otherwise stated in your policy.
- When it is Not Your Fault
If the collision is not your fault, your insurance premium should not be affected, and you may not have to pay a deductible unless you have opted to reduce your premium amount by including a deductible.
We Can Help You Get Reliable Car Insurance Quotes
At Orr and Associates, we are committed to providing accurate insurance quotes to our customers. We have qualified auto insurance brokers to explain the terms of each type of policy, understand your needs, and help you choose the right coverage. Whether you want to get a new insurance policy for your car or make a claim in the event of an accident, our experts can help you.