Half of insured Americans have avoided filing a claim they could have made, often because they’re worried about higher premiums.
Avoiding a claim doesn’t always save money, with 34% of claim avoiders paying at least $1,000 out of pocket.
Before paying out-of-pocket, consumers should consider their deductible, claims history, coverage and ability to afford the repair.
Filing an insurance claim can feel like a gamble. You may get help paying for damage, but you might also worry that your premiums will go up or that filing a claim could affect your coverage down the road.
That concern appears to be influencing how Americans handle accidents and other costly problems. LendingTree found that half of Americans with home or auto insurance have avoided filing a claim they could have made, with nearly one in four saying a potential rate increase was a major reason. And for some consumers, avoiding a claim may end up costing more than they expected.
ConsumerAffairs spoke with LendingTree insurance expert and licensed insurance agent Rob Bhatt who explained what consumers should consider before deciding whether to file a claim.
Sure — here’s a brief, consumer-friendly section you can drop into the article:
Methodology and key findings
LendingTree commissioned QuestionPro to survey 2,000 U.S. consumers online from Aug. 5-9, 2026. The survey used a nonprobability-based sample, with quotas designed to help reflect the overall U.S. population. Researchers also reviewed responses for quality control.
The survey found that half of Americans with auto or home insurance have avoided filing or pursuing a claim they could have made. The biggest reasons were concerns about higher premiums (24%), costs that were below or just above the deductible (23%), and damage that seemed too minor to report (22%).
Younger consumers were particularly likely to avoid claims, with 84% of Gen Z respondents saying they had done so, compared with 63% of millennials, 40% of Gen Xers, and 27% of baby boomers.
Avoiding a claim didn't always save consumers money, either. More than a third (34%) of claim avoiders paid at least $1,000 out of pocket, including 15% who paid $2,500 or more. Meanwhile, 37% said they regretted not filing, and only 16% said avoiding the claim had no noticeable negative consequences.
Why aren’t consumers filing claims?
Bhatt explained that the biggest factor contributing to consumers – especially younger consumers – not filing insurance claims is uncertainty about the financial consequences.
“In our survey, 24% of claim avoiders said they were concerned that filing would raise their premiums,” Bhatt said. “Others said the cost was below or only slightly above their deductible, or that the damage did not seem serious enough to report.
“That concern is especially clear among younger consumers. Eighty-four percent of Gen Z policyholders said they had avoided filing or pursuing a claim they could have made. Our survey does not identify one specific reason for that gap, but it is clear that many younger consumers are weighing an immediate repair bill against the possibility of higher insurance costs later.”
Should you file a claim?
If you’re struggling to decide how to know when it’s time to file a claim, Bhatt shared a a list of some of the top factors to consider:
The repair estimate and how much the insurer would pay after the deductible
Whether the damage is covered and whether it could worsen if left unrepaired
Their recent claims history and whether they have claims forgiveness
The type of claim, particularly for auto insurance, where an accident that was not your fault may have less impact on rates than an at-fault accident
Their financial ability to pay out of pocket without taking on costly debt or postponing other essentials
“Home and auto claims work differently,” Bhatt explained. “Most property damage and liability claims can raise home insurance rates, and multiple home claims in a short period can make it more difficult to keep coverage. With auto insurance, the impact often depends more on the type of loss and who was at fault.
“Before opening a claim, consumers can ask their insurer or agent whether the damage is covered, confirm their deductible, and ask how a claim could affect their rate. They should be clear that they are inquiring, or seeking information. This protects a policyholder from opening a claim while they are still deciding whether to use insurance or pay on their own.”
Paying out of pocket vs. using your insurance
Many consumers choose to pay out-of-pocket because they’re worried about how filing a claim will impact their premium long-term. However, Bhatt says there are other factors to consider.
“It really depends on the policyholder’s deductible, claims history, insurer, and ability to absorb the expense,” Bhatt said. “A good first step is to get a repair estimate and compare it with the deductible.
“For example, if you have a $3,500 deductible and $5,000 in damage, insurance is only going to cover $1,500. In a situation like this, paying out of pocket may make sense if you can comfortably afford it.”
However, Bhatt said if the cost would force you to take on debt, delay necessary repairs or drain your emergency savings, filing a claim may be the better financial decision.
“The key is to look beyond the immediate bill,” he said. “Our survey found that 34% of claim avoiders paid at least $1,000 out of pocket, and 37% later regretted the decision. Delaying a repair can also allow the damage to get worse, which may create a much larger expense later.”
Don’t ignore home repairs
While insurance premium costs are increasing, Bhatt recommends that this shouldn’t delay home repairs – especially necessary ones.
“Do not ignore necessary repairs simply because filing a claim feels risky,” he said. “Most people are trying to manage rising costs these days, but unresolved damage can lead to bigger problems, more stress, and higher expenses over time.”
Bhatt also encourages policyholders to review their coverage and deductible before a loss happens. “A higher deductible can lower your premium, but it’s only worth raising your deductible if you have enough in savings to cover it if you need to,” he said. “It is also worth comparing quotes periodically, especially after a significant rate increase, because pricing and eligibility can vary widely by insurer.
“Policyholders should also maintain a home inventory, document damage with photos, and get repair estimates promptly. These steps make it easier to assess a loss and file a claim after a disaster or theft.”