To File or Not to File a Claim?

When should I file a claim and when should I not?  It is a common question we get in our agency and every time it is asks we always say, "it depends on each situation".  Let's first tackle this question with how claims can affect your insurance. 

It varies by insurance company but most companies look at a 6 year window for home insurance claims and a 3 to 5 year window for auto insurance claims.   What this means is that if you file a home claim it can have an affect on your premium for up to 6 years and if you file a claim on your auto insurance it can affect your premium for 3 to 5 years.  If you have more than one claim in this window of time it can really have an impact on your premium and may even cause some insurance companies to look at canceling your coverage.  With this in mind, it is best to consult with your insurance agent to see what prior claims you have on your record before deciding whether or not to file a claim.  If you already have a  claim inside one of those windows of time then it may be worth contemplating whether to file a claim or not.

Let me break for one second to mention that liability claims are a must file.  These would be auto accidents that involve a third party bodily injury or a homeowner claim that involves injury to another person.  These need to be handled by the insurance company and their legal firms.  Also, if you have a large claim such as a totaled vehicle or large size house damage, these too are claims you would want to file without hesitation.  The claims that we are talking about that may or may not be worth filing are things such as backing your car into a light post, backing into an unoccupied car or driving off the road and causing damage to the front bumper when you hit a ditch.  On the homeowner side, it would be small claims such as ice dams that cause a $1000 or $2000 worth of damage or a roof claim that the repair is only a $1000 or so.  These are the types of claims it is worth contemplating prior to filing.  When you factor in deductibles and the affect on your premium for a few years, those smaller claims may be best to pay out of pocket.

Mobile Phone Rule Changes: How CMV Drivers Communicate on the Road

Here is recent information about cell phone use in CMV published by RiskControl360:

All drivers of Commercial Motor Vehicles (CMV) should know by now about the new rule restricting their use of hand-held mobile telephones and devices. This rule was adopted by the Federal Motor Carrier Safety Administration (FMCSA) and the Pipeline and Hazardous Materials Safety Administration and went into effect on January 3, 2012.


The purpose of the rule is to help reduce distracted driving and prevent roadway accidents, injuries and fatalities. According to the FMCSA, the odds of a driver being involved in a safety-critical event, such as an unintentional lane deviation, crash or near-crash, are 6 times greater when dialing a mobile phone while driving than when not doing so. Similarly, CMV drivers are 23 times more likely to be involved in a safety-critical event while texting and driving versus when not texting and driving.

Therefore, the rule restricts CMV drivers from reaching for or holding a mobile telephone while operating their vehicle, or pushing more than one button to operate the device. What this means is that the device must either be mounted or otherwise securely within reach at the control panel. In short, CMV drivers who use a mobile phone while driving can only operate a hands-free phone located in close proximity and cannot unsafely reach for a device, hold a mobile phone, or press multiple buttons.

So what are drivers still permitted to do?

-Locate the mobile phone so it is operable by the driver while restrained by properly adjusted safety belts.

-Utilize an earpiece or the speaker phone function.

-Use voice-activated or one-button touch features to initiate, answer, or terminate a call.


Drivers found not in compliance with these rules can face civil penalties of $2,750 and disqualification for multiple offenses. In addition, employers are prohibited from requiring or allowing their drivers to text or use a hand-held mobile phone while driving and may be subject to civil penalties up to $11,000.

CMV drivers wishing to comply with the new rules and improve roadway safety can follow FMCSA’s simple slogan: No Call, No Text, No Ticket!

For more information, please contact RiskControl360’s Group Safety Coordinator, Lisa Shaver at (877) 360-3608 ext. 2367.

Improved Workplace Awareness Helps Traffic Fatalities Trend Downward

Employers and employees need to address the issues associated with automobile accidents as part of their daily management routine. A heightened awareness of automobile safety in the workplace has resulted in greatly improved fatality results. In 2010, 32,788 people lost their lives in vehicle accidents - down nearly 10,000 in the last decade. Fourteen percent of workplace fatalities result from automobile accidents. That is also down from 22 percent just 10 years ago. While this trend is moving in the right direction, the automobile exposure to a business offers one of the most serious liability exposures that can be faced.


Performance Management consultants recommend compliance with the 4-A’s of driving:

Anticipate what could possibly go wrong and focus on driving to avoid mishaps
Adjust to changing circumstances such as traffic congestion or changing weather
Assume nothing - don’t automatically assume that traffic will stay moving or a car won’t change lanes into your path
Allow no distractions - drivers must avoid anything that takes their focus off of driving

Not only can the strict adherence to an automobile safety program help relieve a business from a serious claim, maintaining drivers with good records reflect positively on the business’ auto insurance premiums.

Performance Management predicts that if employers would institute just two actions, implement standards of practice for driving and educate employees about good driving principles and management’s expectations, accidents would be reduced by more than 50 percent.