If you file a car insurance or home insurance claim in Ohio and then decide that you no longer want the insurance company involved, you may close your claim. Some things to keep in mind …
- This has been my general experience for over 20 years and applies to all companies we represent. Can there be a situation where you are NOT allowed? Of course. It's insurance – with the exception of definitions, there are always "it depends" situations. My suggestion? If you are curious, just ask your agent for the answer. Better to know than to guess.
- There are likely time limits to close your claim. Ask your insurance company or agent if you are unsure.
The following are the two main reasons why you should close your insurance claim.
Reason # 1
You Should Close Your Insurance Claim – Your Damages Are Less Than Your Deductible
Many times when you have an accident or suffer damage to your property, your first instinct is to file that claim. Then you get the estimate to repair the car or house, or anything that is damaged and discover that the damage is less than your deductible. Your deductible always applies first, so if it is less, you basically have no damages and the insurance company closes it.
Helpful Hint: Unless the situation is a true emergency (think a house fire or a serious accident with damage), and you have no good idea about the damage in dollars, it is best to get these estimates for repair BEFORE you submits the claim. Then you can make an informed decision. You may find that the damage is less than the deductible, so no requirement. Or you may find that it is only a few dollars over the deductible and that you are better off paying out of pocket. We have had many cases where the insured has a $ 1,000 deductible and the damage is $ 1,500. The insured often decides to pay out of pocket instead of handing in the damages. Save the insurance for the true catastrophe, when the difference can be tens of thousands of dollars as opposed to $ 500.
Reason # 2 to close your insurance claim – The wrong party has taken responsibility and is now working with you to repair your damage
In car accidents in Ohio, there is sometimes a delay between when an accident occurs and when the wrong insurance company takes responsibility. You may not be able to wait due to a vehicle that cannot be driven, so you decide to open a claim under your policy to get back on the road faster. Assuming you have the right coverage for your insurance (usually collision and / or rent compensation), your insurance company will work to settle your claim.
While this is happening, the fault company will contact you and be prepared to take care of the damage. You can certainly close the claim with your company if you choose and let the other company pay at that time. Or you can have your business terminated, and then they will replace the other party to recover the money paid. The ultimate choice is up to you.
Morality of the Story – Do Not Submit a Claim If You Are Not Completely Sure never happened. 9 times out of 10 it is simply not true. Insurance companies report claims to a central database called CLUE (Comprehensive Loss Underwriting Exchange). When you apply for new insurance, a CLUE report is run by the new insurance company and all reported claims will be displayed. In the case of one that is open and then closed, it will appear and show $ 0 payout. These statements may affect your ability to obtain a new policy or one without additional fees.
This is exactly what we had done. A potential customer was looking for a homeowner. She mentioned that she had submitted two claims within three years, but no one had any payment. The fact that both appeared as claims filed made her unjustified.
So it's really important not to just file a claim every time there's a small question. Because the insurance companies will make decisions about acceptability based on this history. Get advice and guidance from your insurance agent, do your homework and then decide if your situation really justifies reversing your claim. hesitate to get the claim started. But for minor issues, it is best to get these estimates BEFORE filing the claim.
Not only do we help people during the insurance review and purchase process, we also help with the insurance claim. We would love to talk to you too! Call us at (937) 592-4871 or fill out the form below.