Is it better to not go through car insurance?

Asked by: Dr. Ernestina Sanford IV  |  Last update: September 27, 2025
Score: 4.8/5 (46 votes)

Always file a claim if there are injuries. “While there are occasional situations where a claim isn't needed, sometimes going through your insurance is unavoidable, such as when someone is injured or when fault is unclear. If the damage is only to your vehicle, however, it's up to you.”

Is it better to go through car insurance or pay out of pocket?

Insurance companies track how many claims you file. If you have a history of claims, your premiums typically go up even more. By paying cash, you avoid adding another claim to your record. But if you seldom file claims and you believe this repair cost justifies using insurance, then it might be worth it.

When should I not go through insurance?

If the repair cost is lower than your insurance policy's deductible, it's probably not worth filing a claim. For instance, say your deductible is $1,000, but the cost of damage is $800. In that case, filing a claim wouldn't make much sense as your out-of-pocket cost is higher than the amount your insurer will cover.

Should I go through their car insurance or mine?

Even if the damage is minor, it is important to contact your own insurance provider as soon as possible (no matter who you think is at fault) to ensure that you can get your claim started and completed quickly.

At what point is car insurance not worth it?

If your vehicle is paid off, there are only a few instances that justify dropping collision coverage: Your vehicle's value is less than a few thousand dollars: If your car holds minimal value, collision coverage may not be worth carrying. This is especially true when a large car insurance deductible is involved.

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Should I go through car insurance or not?

Always file a claim if there are injuries.

“While there are occasional situations where a claim isn't needed, sometimes going through your insurance is unavoidable, such as when someone is injured or when fault is unclear. If the damage is only to your vehicle, however, it's up to you.”

When should I stop having full coverage on my car?

This is common for people driving older vehicles with high mileage. You can also consider dropping full coverage if your comprehensive and collision premiums equal 10% or more of your car's actual cash value. Most drivers need the financial protection that comes from carrying comprehensive and collision coverage.

Do you really need insurance for a car?

Having car insurance is required by law in most states. If you are at fault in a car accident, the auto liability coverage required on your car insurance policy helps pay for covered losses, such as the other party's medical bills and damage to their vehicle or other property that results from the accident.

What happens if no one is at fault in an accident?

But what will happen if no one is at fault for your car accident? You can always file a no-fault car insurance claim. The insurance provider will compensate the policyholder and its passengers for the cost of minor injuries and loss of income regardless of who caused the accident.

Does your insurance go up if someone hits you?

If you are involved in an accident and file a claim, even if it was not your fault, your insurance company may see you as a higher risk to insure and increase your rates. Consider speaking with a licensed insurance agent to see how much insurance could increase after an accident where you're not at fault.

When should I stop car insurance?

Reasons to cancel your auto insurance

You no longer drive. You're switching insurance companies. You're covered under someone else's policy. You're moving out of the country.

What happens if you don't tell your insurance about an accident?

There is no California law per se about notifying your insurance company after a collision, but your auto insurance policy is a contract. When you signed it, you agreed to the stipulations in the contract, which will almost certainly include the requirement to notify the insurance company promptly after an accident.

Is it better to have insurance or not?

Health insurance provides important financial protection in case you have a serious accident or sickness. People without health coverage are exposed to these costs.

Is it better to have a $500 deductible or $1000?

Remember that filing small claims may affect how much you have to pay for insurance later. Switching from a $500 deductible to a $1,000 deductible can save as much as 20 percent on the cost of your insurance premium payments.

When not to claim car insurance?

While filing a claim can lead to your insurance provider covering the costs of repairs or replacement, there are some situations where you may not need to file a claim: You're involved in a minor accident and don't care to repair the damage. The cost of repairs is less than your deductible.

Can I pay out of pocket instead of using insurance?

You may choose not to use insurance if the service you need isn't covered, or it's less expensive if you pay out of pocket. In most cases, providers and facilities must give you an estimate when you schedule care at least 3 business days in advance, or if you ask for one.

Should I file a claim if I'm not at fault?

Always File a Claim, Regardless of Who Was At-Fault

One of the primary questions we receive from clients who have been in an accident is whether they should report the accident to their own auto insurance carrier, particularly when the accident was not their fault. And the answer to that question is: always.

When someone hits you, do you call their insurance?

If the at-fault driver is uninsured or leaves the scene, your own insurance will pay if you have the right coverage. Always call your own insurance company, even if you think the other driver is at fault.

Should I file an insurance claim for bumper damage?

It may not make sense to file a claim if the bumper damage is minor and the repair cost is lower than your auto insurance deductible. If you have a low deductible, it may be worthwhile to file a claim, even for minor repairs.

Why is it bad not to have car insurance?

Putting aside a situation where you get into an accident and have to pay out of pocket for repairs and medical bills (yours or others involved), driving uninsured also carries steep fines and a loss of your license. You also may be surprised by how affordable car insurance can be.

What state does not require car insurance?

New Hampshire and Virginia are the only states that do not require auto insurance. However, if you choose not to purchase car insurance in these states, you would still be held liable for any property damage or bodily injury caused by their vehicle. Do you live in an at-fault or not-at-fault state?

At what car value should you drop full coverage?

Full coverage auto insurance is typically required until you finish an auto loan or lease term. It's wise to drop full coverage when the cost of insurance is equal to or more than the cost to replace your car if it's totaled in a car accident or if you can afford to pay for damages out-of-pocket.

Is it good to keep full coverage on a paid off car?

Risk Tolerance: Full coverage can provide peace of mind by protecting your car from various risks, including accidents, theft, and weather damage. If you prefer the extra security, keeping full coverage might be worth it, even after the car is paid off.

At what age should your car insurance go down?

Experienced drivers are less likely to have accident claims, which means they cost less to insure. At Progressive, the average premium per driver tends to decrease significantly from 19-34 and then stabilize or decrease slightly from 34-75. At age 75, the average premium begins trending upward.

When should you drop collision insurance?

You can drop collision insurance if the collision deductible combined with the total cost of the coverage is higher than the current market value of your car. You should also drop it if your car's value is equal to or less than the deductible, since the coverage won't pay out if you file a claim.