Avoid Filing Small Claims — It Raises Your Rates

The Problem

You file every claim because 'that's what insurance is for.' Your rates keep going up.

The Hack

Only file claims for significant losses you can't cover from savings. A $500 windshield claim that raises your rate $300/year for 3 years costs you $900 — you'd save $400 by paying out of pocket.

Why It Works

Insurance companies use claims history to set rates. Even not-at-fault claims can raise premiums. Each claim stays on your record for 3-5 years, compounding the rate increase.

Pro Tips

• Rule of thumb: if the claim is less than 2x your deductible, don't file
• One claim can raise rates 20-40%
• Two claims in 3 years can make you uninsurable by preferred companies
• This is why higher deductibles make sense — you self-insure the small stuff