Generally speaking people think the purpose of car insurance is to reimburse you if your car gets damaged. If your car sustains $1,500 worth of damage from a hail storm you expect to be paid that amount minus your comprehensive deductible.   However,  what if the damage is a door ding in a parking lot or a cracked windshield where the damage barely exceeds your deductible?  In that case should you file a claim to have the damage repaired?

Using this example:  Your windshield gets cracked by a rock driving down the highway. The cost to replace your windshield is $325 and your deductible is $250.  If you file a claim with your insurance company, you will be required to pay the first $250 of the repair bill and the insurance company will pay the remaining $75.

When your insurance renewal comes in you notice your premiums for all your vehicles has taken a jump from the last policy term.  That’s because on your new policy renewal, you probably a claims free discount, which could be up to 10% of the policy total. If you insure several vehicles with full coverage and have a teenage driver or two, that discount could amount to several hundred dollars every year.