"Petty" Insurance Claims
By: Daniel Woodruff
Updated: July 10, 2009
It's an economic sign of the times.
Insurance agents are noticing people filing insurance claims for little things. These are known as "petty" claims. While these claims can provide temporary relief, they can end up costing you more money. And they can affect everyone, even if you don't file a claim.
Blair Stump, an insurance professional, spoke with FOX Fort Wayne about these claims and the problems they pose.
Stump says claims for small things, like minor home damage or theft, can have long-term consequences. That's because if you own insurance, you've essentially pooled your risk with other policy-holders in that company. The more money the company pays out in claims, the higher the rates. Therefore, Stump says, "petty" claims can cause financial difficulties for insurance companies, driving up costs and affecting other policy-holders in the process.
For more, click on the video.
