Filing too many claims to your insurancecompany—regardless of how small—could result in your insurance droppingyou, and you may experience that negativerepercussion with other insurance companiesfor as long as 5 years. A recent articlein reveals that insurance companiesshare claims information with eachother through a database called the ComprehensiveLoss Underwriting Exchange,and they can access your claim history for5 years. Claims cost insurers a bundle inadministrative expenses, so even if yourclaim is small, it does not mean they won'tdrop you for it.
Companies are especially wary ofwater-related claims because they couldlead to more damage in the future—andindicate poor maintenance. recommends that if damages total just afew hundred dollars more than yourdeductible, that it may be less expensiveand cause less grief in the long run for youto just pay for them yourself. Also, if youraise your deductible to at least $1000,your premiums can be reduced up to 25%,while simultaneously discouraging youfrom filing small claims.