A smashed vase: is it worth the claim? credit
Insurance exists to provide us with a safety net. When things go wrong, and money is involved, insurance companies are there to bail you out. If you’ve had a car crash and your vehicle is in pieces, your insurance company will cover the damages. If you’ve broken your laptop or phone, then home contents insurance should cover its repair or replacement. It seems very straightforward, but if only it were that simple!
As you’ll soon learn with insurance, nothing is ever simple or straightforward. The world of insurance is complicated and tricky to navigate. It’s built that way on purpose. Remember, they’re looking to make as much money as possible, and they don’t want to pay out! With so many caveats and fine details, is it actually worth making an insurance claim? The hassle and money involved can often outweigh the benefits. More importantly, your premiums will shoot up. Let’s take a look in more detail.
Was it your fault?
Firstly, was that accident your fault? If someone else were to blame for the incident, then you should absolutely make an insurance claim. The money comes out of their insurers, and you’ve got nothing to lose. This relates particularly to car accidents where the damage was caused by someone else. If your car has received a lot of damage, it’s up to the guilty party to pay up.
Have you been injured?
The next thing to ask yourself is whether you’ve suffered an injury. Again, if the accident is the result of someone else’s negligence or recklessness, you should claim. Making a claim on someone else’s insurance is often worth the hassle, especially if you’ve got large medical expenses. If you need assistance, speak to injury lawyers too. They’ll help you exact the money you deserve from the insurance companies.
Will it push up your premiums?
In many cases, you can’t claim on someone else’s insurance, and the only choice is to turn to your own. Perhaps you’ve scraped the car on a concrete post, dented the bodywork or smashed the wing mirror. Maybe you’ve poured water on your laptop or broken an expensive vase. The big question here is whether it will push up your overall premium by claiming. When you go to your insurance company for a replacement or repair, you’ll lose your no-claims bonus. Assess whether that additional price is worth the money saved.
What is your excess?
The insurance excess is the figure you’ll pay before the insurance kicks in. For example, let’s say your car insurance excess is £250. If you smash the wing-mirror and the repair cost is £300, you’ll still pay the first £250. Is it really worth claiming on the extra £50? Bare in mind that your premium will go up as a result.
Do your sums
When it comes to claiming insurance, every scenario is different. Calculate the costs on an individual basis and decide whether it’s worth the money and hassle.
Sometimes, it’s easier just to pay up yourself and move on. But remember, if you’ve been injured or it’s not your fault, always make the claim.
