You Don’t Have To Tell Your Insurer Everything

A friend recently got a bit of a shock when his auto insurance came up for renewal. He discovered that his new rate was $400 higher than his old rate. He couldn’t figure out what was wrong until he remembered: He filed a minor, one person accident on his insurance. The total claim was for $500; just a few dings from a run in with his fence. He still had to pay the $500 since his deductible was $1,000, so filing saved him nothing and has ended up costing him big time.

I asked him why he filed, knowing that he’d have to pay out of his own pocket anyway.

“I thought you had to tell your insurer everything,” he said. “I thought any sort of accident had to be reported


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5 Responses to You Don’t Have To Tell Your Insurer Everything

  1. You might have saved some of those readers a lot of money!

    Thanks, Jennifer!

  2. Scanner says:

    I would only disclose the obvious – you don’t file a claim and then later on want protection, it may not be there.

    Fair is fair – you want to leave your insurer out of it, cool. Just don’t expect them to come to the rescue when you rear-ended Aunt Millie and now that fender costs $3000 vs. $300 to buff it out.

  3. This is a good post! Like you said, .. insurance is to pay for what you CAN’T deal with on your own. That’s IT.

    If you are paying for it… there is no reason to tell them. That is just giving them and EXCUSE to charge you more money.

  4. hip says:

    It is important to note that you DO have to tell your insurance company everything when it comes to getting health insurance. If you hide or fail to disclose certain things on a health insurance application then that can mean big trouble down the road if they ever find out (and they usually do). Always be upfront and honest when filling out a health insurance application.

  5. Honour says:

    Likewise don’t call 800 line to ask how to solve a problem. Had the washer hose pop off the metal drain. Called to ask which rental carpet cleaner had the best ‘suction’ to remove water. 3 months later had an increase on renewal. Never had a claim, never filed a claim, never talked to a claim agent, never talked to my agent nadda!
    The lady on the 800 line didn’t know which of the brands had the more powerful machine. Called the fire dept. and they sent a machine over for me to use, no cost, no fee, no problem.

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