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Ches Crosbie Barristers

Is It Better To Pay For Minor Vehicle Damage Or Make An Insurance Claim?

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If you've ever been in a car accident, you probably know that dealing with the insurance company over your vehicle damage can be hectic. How do you minimize the madness? Know your options. 

Basil Crosbie, President of the Insurance Brokers Association of Newfoundland and Labrador, went on CBC’s Crosstalk to discuss insurance claims and respond to the questions and statements of disgruntled callers. He made some really interesting points:

  • It may be in your best interest to pay for a minor car accident damage out of pocket. If you get into a car accident and it doesn't cost a whole lot to repair your vehicle, it might make more financial sense to pay for the car damages yourself. This way you avoid having your insurance pay for the damages and then hit you with significantly higher insurance rates in the future.
  • If you decide to pay for small damages out of pocket, legislation in Newfoundland and Labrador says you can tell your insurance company of this situation and your insurance rates MUST NOT go up. It is illegal to raise the cost of your insurance for an accident you paid for without the insurance company.
  • If you do find yourself paying for a small accident rather than having your insurance company pay for it and then raise your rates, you should still tell your insurance company about the accident. It is important to have a record of the accident in case of immediate personal injury or personal injury from the accident that only becomes apparent down the road.
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