I was advised by my independent agent not to make minor claims (windshield chip, roadside assistance) as that they are considered claims and would result in rate increases. Dropped roadside from my policy and purchased AAA.
Was wondering if this it true? Does this also affect homeowners insurance too? I was considering adding equipment breakdown, but don't want to get penalized if I ever used it. Thanks
Posted by dmbgreen
4 Comments
This is a super simple question with a super complex answer since every company does things differently and every state is different in what can be considered for premium increases, etc.
But I think speaking in general, most people on this forum will tell you to try and avoid making small claims. Personally, I would never keep my tow coverage with my insurance company. I would probably not make a glass claim unless my windshield was super crazy expensive or something.
Yes, this is true. Insurance is best saved for large losses that you can’t pay out of pocket. It’s not a replacement for a savings account to be used for maintenance. If you file multiple claims for small incidents, your premium will reflect you as a high risk, or the company will decide to no longer do business with you. This is especially true for Homeowner’s.
Thanks, the equipment breakdown is cheap at $50 so if I got a power surge that toasted several things it might pay. Would be better than a home warranty which looks to be pretty much a scam.
Just like other claims, don’t make small equipment breakdown claims. Your microwave craps out, buy a new one. Your hvac goes, call the insurance company.