Suppose I have an insurance policy (specifically: for house contents), and suffer a loss that is covered by the policy. If I make a claim, I get money now, but the insurance company will probably increase my annual payment later. So, if the loss is relatively small, and I can easily pay it myself, it may be better to avoid making a claim, in order to avoid the increased costs. But in order to decide, I have to know how much higher the annual payment would be. I did not find this information anywhere in the policy.

Is there a rule of thumb for estimating the increase in payments due to a claim?

EDIT: I have just noticed that the insurance company have added to my policy, for free, a cover for replacing the keys to my house, in case of loss or theft. Of course, the price of replacing the keys is quite small, and I do not really need this coverage, but it is a standard part of their policy and it is free. This emphasizes the question, whether should I make such a claim?

  • Great question, I have always wondered this too.
    – Craig W
    Commented Oct 16, 2021 at 20:09
  • 1
    As a general rule, I'd advise getting/using insurance to protect against claims that would otherwise cause significant financial hardship. That's why I usually set my deductibles to a level where I am not paying to insure against small claims, nor am I tempted to make them.
    – JohnFx
    Commented Oct 18, 2021 at 18:55
  • @JohnFx home-contents insurance may insure against significant hardship, for example if all contents are burnt in a fire. But once I buy the insurance, I am also insured against smaller losses, for example if only a small part of the property is burnt. Hence the question of whether to make a claim in this case. Commented Oct 18, 2021 at 22:37


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