Insurance is a great way to protect yourself from unexpected losses. But knowing when to file a claim and when not to, well, that can protect you from unintended consequences. It’s prudent to have life, health, auto and home insurance and it’s also wise to keep the cost of your premiums low. Rob will tell you the secret for doing that on this MoneyWise. 
<ul><li>Insurance isn’t specifically mentioned in the Bible. But God’s Word does tell us that we should be prudent and wise. Proverbs 8:12 says, “I, wisdom, dwell with prudence, and I find knowledge and discretion.” And Ecclesiastes 7:12 tells us, “For the protection of wisdom is like the protection of money, and the advantage of knowledge is that wisdom preserves the life of him who has it.” Having insurance is wise, but knowing when to file a claim and when not to requires wisdom as well. Sometimes the payout just isn’t worth the cost down the road to you, personally, and to consumers as a whole.</li><li>So when should you file a claim? There’s a good rule of thumb for home and auto insurance: only file a claim if the damage comes to $500 or more on top of your deductible. So if you have a $1,000 deductible, file a claim only if the repair bill comes to more than $1,500. Try to think of home and auto more like catastrophic health insurance. Use it only for the big things, not to nickel and dime the insurance company whenever you dent a fender or lose a shingle in a wind storm. You’re better off paying for those things out of pocket. Filing multiple claims with an insurance company is a sure way to get your premiums raised, or worse. You could find that when your policy is up, the company declines your renewal. And if you think that you’ll just go to another insurance company you’re probably in for an unpleasant surprise. They talk to each other.</li><li>You’ve probably never heard of it, but the insurance industry has a secret weapon that it uses to weed out frequent filers. It’s a shared database called the Comprehensive Loss Underwriting Exchange or CLUE. If ever there was an appropriate acronym!</li><li>You don’t want to file a claim unless you’re facing significant out of pocket losses. But there’s a way you can avoid even the temptation of filing. The next time your policy is up for renewal, raise your deductible to the highest amount the insurance company allows.</li><li>Next, you want to make sure you have an emergency fund, plus another $500 or $1,000. With that accomplished, you’re now insuring yourself against minor losses.</li><li>Finally, keep that amount—your deductible plus at least $500—in your emergency savings. Do all that and you’ll save yourself a lot of money and grief down the road. This will not only avoid the temptation to file, but the high deductible will also help lower your premiums which will save you a lot of money over time.</li></ul>On this program we also answer your questions:
<ul><li>How can we know which needy causes are legitimate?</li><li>I want to give a significant amount of money to my church. What’s the best way to do that?</li><li>Do you recommend Bitcoin?</li></ul>Remember, you can call in to ask your questions most days at (800) 525-7000 or email them to <a href="mailto:questions@moneywise.org">Questions@MoneyWise.org</a>. Also, visit our website at <a href="http://moneywise.org/">MoneyWise.org</a> where you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources like the free MoneyWise app. Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion! Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab on our website or in our app.

FaithFi

Faith & Finance is a daily radio ministry hosted by Rob West. The program offers a practical, biblical and good-natured approach to managing your time, talents and resources.

Faith & Finance with Rob West

Insurance is a great way to protect yourself.  But knowing when to file a claim can protect you from unintended consequences. It’s prudent to have life, health, auto and home insurance and it’s also wise to keep the cost of your premiums low.

When To File an Insurance Claim

FaithFi | Oct 8, 2021

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