After making an insurance claim on their auto insurance policy, people will quite often try to switch their insurance on their car over to another company in the hopes that they will get a better deal and avoid having their premium raised. What they soon find out however is that even though there may not have been a police report filed, the record of their insurance claim is shared with all other insurance companies, effectively blocking them from getting that sweet deal.
It sounds like a good idea, doesn't it? Say maybe you hit a curb in a parking lot, doing damage to your vehicle that goes over your deductible. No one was hurt, you didn't hit another car, but now your vehicle is damaged. You file an insurance claim, get it fixed, pay your deductible and you're good to go. Next thing you know, your premium goes up. That's understandable. Your insurance company now sees you as a bigger risk and therefore seeks to protect itself financially.
So you get the bright idea of switching companies. There was no police report, no moving violations, no public record, right? Wrong. Insurance companies have a program in place for such occurrences. This is the same program that allows them to all communicate and cooperate with each other. It's pretty much vital to the auto insurance “system. "
So what are you supposed to do? In reality, there's not much you can do. Your claims record will follow you everywhere. The best thing you can do is avoid filing any insurance claims for a few years. If you have a minor claim that doesn't involve any other vehicles or people, consider paying for it out of pocket if you can. It's more money up front, but may save you more money in the long run.
Of course, driving more safely is always your best bet. Most people are a bit “gun shy" after accidents and start to drive more carefully, so that will work in your favor. Listen to that nagging voice in your head that tells you to be more careful.
If you were involved in an accident with another vehicle and there is a police report, then you know that all the insurance companies will definitely know about it, should they take a look-like when you go to buy insurance from them. You may be able to save a few bucks by changing insurance companies even then, but regardless of who you go with, the best thing you can do is ask them if they have any options for lowering your premium. Some offer a discount if you attend driver's safety school. Another option is if you have a vehicle that is fully paid for, you can just get liability coverage, which only covers any damage you do to other people and property, not your own. This is risky, but often cuts your premium in half.
In the end, there really is no way to pull the wool over the insurance companies’ eyes. The best thing you can do is drive safely and avoid claiming any minor dents or dings that don't involve other vehicles.
Kian Chew is a car insurance expert and owner of Car Insurance Hot Zone. Car Insurance Hot Zone helps those who wish to lower their car insurance cost for life by using a few basic rules and some strategies which few people know. You can instantly view the secrets by visiting http://www.CarInsuranceHotZone.com