If the loss is below the deductible or there is no coverage for the loss, the event should never be recorded or reported.
The policy premium is predicated, in part, on probable loss, including the deductible.
The policyholder pays the premium for “self-insuring” for the first $250 to $1000 (or more)of loss (the deductible)and for anything not covered by the policy.
The policyholder should not be punished for something the insurance company is not on the hook for.
However, an insured loss above the deductible, which the policyholder opts to pay themselves, should be reportable.
Involved in this now. I backed into the house, did about $1,400 damage on my car. Decided to pay it out of my own pocket when I found out my insurance would go up by about $1,200 over the next five years. But the “zero payout claim” has already been recorded and my rates will be going up any how. So now the insurance company gets to shell out $900 to my $500. Yeah, that worked out great for everyone, didn’t it?
If the loss is below the deductible or there is no coverage for the loss, the event should never be recorded or reported.
The policy premium is predicated, in part, on probable loss, including the deductible.
The policyholder pays the premium for “self-insuring” for the first $250 to $1000 (or more)of loss (the deductible)and for anything not covered by the policy.
The policyholder should not be punished for something the insurance company is not on the hook for.
However, an insured loss above the deductible, which the policyholder opts to pay themselves, should be reportable.
Involved in this now. I backed into the house, did about $1,400 damage on my car. Decided to pay it out of my own pocket when I found out my insurance would go up by about $1,200 over the next five years. But the “zero payout claim” has already been recorded and my rates will be going up any how. So now the insurance company gets to shell out $900 to my $500. Yeah, that worked out great for everyone, didn’t it?