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You may be reluctant to
file a claim because you fear that your premium will go up or your
insurance will be canceled. Practices vary from company to company. In
general, an insurer will increase your premium by specific percentages
for each chargeable claim made against your policy above a specific
dollar amount. A chargeable claim is one the insurer considers primarily
your fault. The percentages and ceilings vary from company to company.
These increases generally stay on your premium for three years following
the claim.
Your company may also decide not to renew your policy if your driving
record gets markedly worse or you have several accidents. Different
insurers have different rules about what constitutes an unacceptably bad
driving record. But some accidents, such as those caused by drunk
driving, will probably trigger a nonrenewal from virtually every
insurance company.
If you have an accident but don‘t report it to your insurer, you are
taking a risk, even if the damage seems minor. If the other driver sues
you weeks or months later, your failure to report the accident might
cause your insurer to refuse to honor the policy. And even if they do
honor the policy, the delay will certainly make it harder for the
insurer to gather evidence to represent you.
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