Accidents happen. Like when you’re driving down the road when all of a sudden, another car cuts in front of you and slams on its brakes. You act fast, but you’re only human. In the second it takes to hit your own brakes, it’s already too late.

In this fender bender, there’s a good chance you’re deemed the one at fault despite the other driver’s carelessness. 

Do you want to involve insurance with an at-fault accident? 

Sometimes, it may be necessary. But sometimes, it might not be worth the hassle. 

When Insurance is Necessary

Generally speaking, your insurer is in your corner when the cost of repairs and other expenses exceeds what you have on hand. They can help you with the big things you have no way of covering on your own, covering vehicle repairs, property damage, medical bills, and even legal fees that result from a collision. 

That said, it’s a good idea to involve your car insurance company any time you think it’s appropriate, regardless of price.

What to Consider Before Filing a Claim

Before you can make that decision, you’ll have to think about a couple of things first.

What is Your Monthly Premium?

Your monthly premium won’t stay the same once you file a claim — almost always, your premiums will increase.

This increase can be challenging depending on what you already pay for coverage. Anyone living in Michigan pays an average of $2,345 a year — that’s more than $500 more than the average driver in the U.S. 

Michigan has some of the highest insurance premiums in the country because of the state’s high crime rate and high fatal crash rate. Add in a claim that increases your premiums, and you could be paying a lot for insurance.

What is Your Deductible? 

Your deductible is the amount you pay upfront before your insurer covers the rest. If you don’t remember what you chose when you first signed up for insurance, you’ll find this in your contract.

When dealing with a minor fender bender, the final cost of repairs may be less than your deductible. In that case, it doesn’t make sense to involve insurance. 

There’s also a chance repairs could only just exceed your deductible by $100 or so. In this situation, you’ll have to crunch the numbers to decide if involving your insurance company for this small amount is worth raising your premiums. 

How Can You Afford Out-of-Pocket Repairs?

Whether you involve in insurance or not, out-of-pocket payments are a reality for many drivers. You might opt out of involving insurance to pay everything on your own, or you may have to pay a costly deductible. 

If you don’t have the savings set aside for these out-of-pocket expenses, getting a line of credit in Michigan can help you cover unexpected repairs. You can find a line of credit in Michigan online using your phone anywhere you get Internet, even while waiting in the repair shop. 

Personal credit lines in Michigan are convenient backups to emergency savings, allowing you to cover essential repairs right away.

The Takeaway

While personal credit lines in Michigan offer a convenient safety net in an emergency, they aren’t always the right option. Take the time to learn more about your insurance and what filing a claim will do to your premiums. This way, you can decide what works best for your unique collision.