Home » Why You Shouldn’t File Small Claims on Your Insurance
June 30, 2023

Why You Shouldn’t File Small Claims on Your Insurance

Car insurance is designed to protect you financially in the event of an accident. If you file a claim with your insurance company, they will pay for the damages to your car, as well as any medical expenses you may incur. However, there are some cases where filing a small claims case against your insurance company is not a good idea.

Here are a few reasons why you shouldn’t file small claims on your car insurance:

  • It’s not worth your time. The process of filing small claims can be time-consuming and stressful. You’ll need to gather evidence, prepare your case, and attend a hearing. If you lose, you’ll have to pay the insurance company’s court costs.
  • You may not win. Insurance companies have a lot of experience defending against small claims cases. They have lawyers who know the law and the system. If you’re not prepared, you’re more likely to lose your case.
  • Even if you win, you may not get paid. Even if you win your case, the insurance company may not pay you. They may appeal the decision, or they may simply ignore it. If you have to collect the judgment, you’ll have to go through the hassle of garnishing their wages or seizing their property.
  • It could raise your rates. Filing a claim with your insurance company can raise your rates, even if you win your case. This is because the insurance company will see you as a higher risk driver.

If you’re considering filing small claims on your car insurance, it’s important to weigh the pros and cons carefully. In most cases, it’s better to work without your insurance company to resolve the issue.If the amount to fix the issue is something you can take on and place for example on a credit card and make payments, it will in the long run save you money on increased insurance premiums for years to come as well as insurance companies dropping you and not wantng to insure you. ( this happens Daily).

Here are some tips for resolving a car insurance dispute without filing small claims:

  • Be prepared. Gather all of the evidence you have, including police reports, medical records, and receipts.
  • Be clear and concise. Explain your case in a clear and concise way. Don’t get bogged down in legal jargon.
  • Be persistent. Don’t give up if you don’t get a favorable response the first time. Keep calling and writing to the insurance company until you get the resolution you deserve.

If you’re still having trouble resolving your car insurance dispute, you may want to consider filing a complaint with the state insurance regulator. You can also contact an attorney who specializes in insurance law.

Here are some additional considerations:

  • If you have a comprehensive or collision coverage, you may be able to file a claim with your insurance company and not have to file small claims. However, be aware that filing a claim can still raise your rates.
  • If you’re not at fault in the accident, you may be able to file a claim with the at-fault driver’s insurance company. However, this can be a lengthy process, and you may not be able to recover all of your damages.
  • If you’re considering filing small claims, it’s a good idea to speak with an attorney first. They can help you assess your case and determine if filing small claims is the best option for you.

I hope this blog has been helpful. If you have any questions, please feel free to leave a comment below.

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