To turn in a claim or NOT

I had an interesting conversation with a client yesterday. It concerned the issue of claim history and how claims, even if nothing is paid in the end, can affect what you pay for auto and home insurance. EXAMPLE: Client calls and says they have hail damage. These type of claims can be extensive and costly. We report the claim to the insurance company. After securing an estimate and an adjuster visits the homeowner, it is determined the damage is under the deductible or the client decides to pay the damages out of their pocket. Therefore, nothing paid by the company. PROBLEM: Since it is a "reported" claim, that claim is on a permanent data bank that ALL companies access. They charge for "report but not paid claims." With today's sophisticated technology, claim history is available to all insurance companies with a few key strokes.

RECOMMENDATION: Buy higher deductibles (the higherst you feel you can absorb) and only turn in claims when you are sure you want to make a claim to the insurance company.

Ron Binning
Binning & Dickens Insurance