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Positively you paid for the auto insurance to recover your losses in case of an accident. Nevertheless, should you make a claim for each small crash since your package lets it? Many individuals could judge that they have shelled out for insurance and for that reason surely they would claim for any damages come to their vehicle. Again there is not anything wrong with that so long as you get ready for a hike in your rate next year rather than possible reduction if you remained without a claim.

Each year insurance companies have to deal with significant number of small claims. You could question that if they are trivial what the issue is. Insurers need to evaluate and process these claims. The administration expense of these claims often higher than the claim itself. Simply, those trivial claims cost the insurance companies practically double as high.

Once more you can point out that why would you worry what it cost to insurance companies. You should mind since it directly impacts the insurance prices all over and yours especially. A claim is a proof of your driving capabilities. Though it may be trivial, it points that you are not a careful driver and you will see its effect when your renewal quote comes. You should not be stunned if your auto insurance cost shoot up more than what you got out of your small claim.

The logic behind insurance is that the pool of cash collected from insured individuals should be used for people who have suffered damages that they can not meet by themselves. A few consumers would not consider few hundred dollar damages as catastrophic and would not bother to request for assist to pay for such loss.

Understandably everybody will have their own opinion, however this piece should at least clarify why their rate keeps rising although they only had a small claim.

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