Your Insurance Claim Checklist
If you’ve recently had an accident or loss, you may be asking yourself whether you should submit the claim, and how it might affect your policy. The answer depends on your situation. Whether or not to submit a claim depends on your loss amount, deductible, claims history, and local laws. If you’re unsure, contact us. We’ll explain how your policy works so you can make an informed decision.
Submitting a Claim
Insurance exists to cover losses—you pay premiums, and your insurer pays covered claims. But claims can affect your rates or even your eligibility for renewal. Why? Insurance pricing is based on risk. Statistics show that people who have one claim are more likely to have another, so claims history plays a major role in your cost and coverage options.
The Size of Your Loss
Your personal claims history and circumstances can also trigger those rules and practices differently than, say, your neighbour’s. Whether or not to submit your claim really only comes into play with small losses that come close to your deductible:
Large losses (e.g., $20,000 car damage, $50,000 home damage) are usually worth submitting.
Small losses near your deductible may cost more in the long run if they lead to higher premiums. Sometimes, it’s better to pay out-of-pocket.
Deciding on Your Deductible
Your deductible is what you pay before insurance kicks in.
If damages are less than your deductible, don’t file a claim.
If damages are slightly above your deductible, weigh the payout against possible rate increases. Example: with a $1,000 deductible and $1,200 damage, you’d only get $200 back—but it could raise your rates for years.
Property Damage vs. Injury
Many incidents involve only property damage. For example, maybe the wind blows some shingles off of your roof. Or perhaps you back into a pole in a parking lot. When your loss involves property damage only, it sometimes makes sense to take care of it yourself and avoid the impact that comes with submitting the claim.
When someone’s injured, however, it’s never a good idea to keep that to yourself. No matter how minor the injury may be, the injured party can come back and sue you at a later date. If this happens, and you didn’t report the claim when it occurred, your insurance company can legally refuse to defend you in the lawsuit and deny any payment. Always keep in mind that your policy requires you to report your claims promptly so the company can control the claim.
Local Laws & Company Policy
Each kind of insurance is subject to provincial laws and regulations, and every insurer has their own internal rules and practices. Local insurance laws protect the consumer, and define the circumstances under which a policy can be cancelled or non-renewed. Personal auto insurance is generally well-protected under the law. Other lines like business insurance may have fewer protections, giving insurers more freedom to non-renew.
