What rule of thumb does the episode give for deciding whether to file an insurance claim?

Question #

What rule of thumb does the episode give for deciding whether to file an insurance claim?

Answer #

The episode recommends not filing a claim unless the loss is roughly three times the deductible, because smaller claims may cost as much or more in future premium increases than paying the loss directly.

Source #

Episode 493 Ñ Episode 493(2).docx