So you were involved in an accident with your bike! Being in a motorcycle accident can be stressful, and your first instinct might be to file an insurance claim. However, in some cases, filing a claim can do more harm than good—especially for minor incidents. Here’s why you should carefully consider whether to involve your insurance company.
1. Increased Premiums
Once you file a claim, your insurance provider may classify you as a higher-risk rider. Even if the accident wasn’t your fault, a claim can lead to a significant increase in your premiums when it’s time to renew your policy. This can be different in each company, they have their own guidelines. Some many not even consider insuring you with an accident, or with an accident below a certain age, etc.
2. Loss of Discounts
Many insurance companies offer accident-free or claims-free discounts. Filing a claim—even for a minor repair—could mean losing those discounts, which may cost you more in the long run than simply paying for the damage out of pocket. Accident Free discounts for motorcycles are rare, but there are out there. So if you’re lucky to have them, you need to be very careful with the type of claims you’re going to file.
3. Deductibles vs. Repair Costs
Most policies have a deductible that you must pay before insurance kicks in for at-fault accidents. Some companies even charge a deductible for fire, theft, vandalism and hit-and-run. So understand your policy before filing a claim. If your deductible is $1,000 and the repair costs are only slightly higher, filing a claim may not be financially beneficial. Instead, covering the repair yourself can keep your insurance record clean. Read the rules of your province in order to understand when you have to report an accident and when it’s optional. Typically for auto, if there is no bodily injury and damages are under $2000, you don’t have to report the claim.
4. Risk of Policy Cancellation
If you have multiple claims within a short period, your insurer may refuse to renew your policy or even cancel it altogether. Motorcycle insurance can be difficult to obtain after a cancellation, and finding coverage elsewhere may come with higher costs and limited options. It’s not always accidents, it could be a combination of an accident and convictions. Insurance companies have a pointing system and if you’re above the threshold, they will refuse to insure you or renew your policy.
5. Liability Considerations
If you were at fault, a claim could put a liability mark on your record, affecting future insurance quotes. Even if the accident wasn’t your fault, there’s always a chance the insurance company will partially assign fault to you, which could impact your record. Regardless of what you think or what the police officer says, at the end of the day, it’s the insurance company’s claim department that will assign fault! You can always dispute it, but you may not win.
When Should You File a Claim?
While avoiding small claims is often beneficial, there are situations where filing is necessary:
- If there are injuries involved (yours or someone else’s)
- If the damage is severe and expensive to repair
If the damage is minor and you can afford the repairs, keeping the incident off your insurance record may save you money in the long run. Before filing a claim, consider your deductible, potential rate increases, and long-term costs.Sometimes, handling it yourself is the smarter move. If you trust your insurance broker, contact them and run it by them for advice.
