Why going through insurance can cost you dear with a car dent21/10/2015 20:30:09
The concept behind car insurance is to indemnify the insured or car owner as the case may be in event of damage to the insured vehicle or insured depending on the coverage of the car insurance. There is therefore the tendency to want to go through car insurance in case of a car dent. While this approach might not be totally wrong, there are some factors to consider before taking such a step considering the effect this action might have on the cost of your insurance when you are to renew the policy.
One of the factors that determine the cost of car insurance besides the cost of the vehicle is the tendency of the driver to get involved in an accident or better put, how regularly you claim . This simply means that the higher the frequency or tendency of the car to get damaged, the riskier it is for the insurance company to insure the vehicle which subsequently means that such an insured owner would have to pay more on car insurance compared to other drivers that do not get their car damaged too often. (Im sure we all knew this yes ??)
From the simple analogy above, the effect of going through your car insurance to fix a car dent can be easily deduced. This however is usually more applicable to small car dents due to the cost involved as they are usually more affordable compared to other major car damages that might require some huge cash to be fixed.
While the effect of going through insurance to fix a car dent might not immediately appear, the effect tends to be more pronounced when you try to renew your insurance. this is so as your driving history or profile already contains the report of a car dent or a couple of them and since the insurance company considers your driving history and accident profile in computing the cost of your insurance, you can be sure of getting an increase on your insurance cost.
In summary , unless its thousands, pay for the damage yourself, you will save in the long run.