You come out of your local store and back into a light pole and it does some light fender damage. The first thought that runs through your head is to file an auto insurance claim. Is this the best idea though? Many people do not sit and think things through and by not you could see increase auto insurance premiums. Let us look at when you should file an auto insurance claim and when you maybe best to pay out of your own pocket.

Conventional wisdom tells most that if the damage is less than your deductible it makes more sense to pay it out of your own pocket. The main problem with this is most people do not understand what things cost to get fixed. Even slight fender benders can really add up to get repaired. A good idea to be safe is have some estimates so you know where you stand. If these estimates are less than you’re deductible it is probably best to pay out of your own pocket. If you have a lot of accidents and file every accident that you have your premiums could increase.

If you are involved in an accident with another party it is always best to file a claim for a number of reasons. First even if no one is hurt later down the line they can make a claim against you. This is why you should always report an accident to your insurance company with someone else. You must protect your interests as you never know what the accident could bring later down the road. Injuries many times do not show up until days after an accident so always keep that in mind.

As you can see filing a claim will depend on many different factors that you must consider. Most of the time though filing a claim is in your best interest. It protects your interests and unless you have a string of accidents your premiums should only see little increases. Each claim is looked at separately so that severity of the claim will also have a bearing if you see premium increases.