For minor damage, is it better to claim on your auto insurance or pay for the repairs yourself?

There is no hard and fast rule about when to make a claim on your insurance for minor car damage and when not to. It can all depend on the circumstances surrounding the incident, how much your insurance is, and how much your deductible is.

You need to make a quick assessment of the damage and have an auto-mobile professional estimate the potential cost and compare it against your deductible. If your deductible is a high amount it may be more economical to pay for the damage yourself. You may still have to report the damage, but you do not have to file a claim. However, any report of an incident concerning your car may have an effect on your premium come renewal period.

You are obligated per your contract to report any accident or damage to your car. Not informing your insurance provider may have adverse effects. Your insurance policy can either be cancelled or non-renewed. Your insurance company would also want to record any incident or damage so it cannot be potentially included in any future claim. Reporting the incident is also one way of letting your insurance company know about it in case you decide to file a claim anyway for one reason or another.

Aside from reporting the incident to your insurance company, it is also advisable to file a police report no matter how minor the damage is.