People bought different types of insurances like health, car, medical etc to protect their assets including their and their family lives or protect themselves from money crises at the time of need.
But does really file a claim if an accident happens or they need money to bear hospital expenses?
The answer would be yes, and they should be because they purchased the insurance and paying the money to insurance company for that time. But sadly many people fear to file claim, especially in minor damage and cost because filing a claim can be a major cause on increase on your insurance rate.
Yes, it is true, when a person file a claim on damage of property in case of home insurance or accident cost in auto insurance your premium rate effects and your insurance premium increased. This increase could be forever or for a temporary time of period, until the insurance company recovers the amount. But normally it could be last for up top three years in case of auto insurance.
If you are not a good driver and filing the claim time to time or in other type of insurance, then your company may refuse to renew your insurance policy. It depends and varies company to company. Some companies just simply increase the insurance rate if you are a bad driver and your driving record is markedly worse while some companies decided not to renew your insurance policy.
Some people also try to hide the damages and did not report to their insurance companies about the damages, specially the minors once in fear that filling claim would increase insurance premium. For a short term it may be looks a good decision to hide it but if the company find out through any other different source then they may refuse to pay the claim, especially in case of car accident where third party report to your insurance company about an accident.
The insurance premium does not just increased if you file a claim but other things also count for example in case of health insurance your health, medical condition, how often you visit to hospital, if you are a smoker or not etc.
So, make sure when you are signing a insurance policy you read the complete section of term and condition and how does your premium will be effect in case if you file a claim.