Would you claim or repair?

You have been in a small, single car accident. The repairs appear to be under $1,000. In my jurisdictions you are not required to report the accident. Do you make a claim under your insurance or do you pay for repairs out of pocket?

A recent survey in the United Kingdom shows that over 80% of self-employed drivers will pay for minor repairs out of pocket. This is a result of a survey of 1,500 drivers of commercial vehicles with a major insurance company.

When asked the drivers reported that 81% had paid for a minor repair in the past year rather than process a claim. This was done to maintain a no-claims discount on insurance.

It was found that 31% of the drivers would leave minor scrapes and bumps unrepaired if it protected their no-claims discount. The drivers stated that they did not want to pay any excess amounts (betterment), preservation of no-claims discount and to avoid paperwork.

The insurance answer is that you should always report a claim if there is another vehicle or person involved to protect their possible injury. If it is a single-car accident then you should check with your broker or agent as to the procedure if you wish to repair your vehicle without the financial assistance of your insurance. It is important that your vehicle is in a safe, roadworthy condition so necessary repairs have to be done.

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