Reporting vs. claiming damage – what’s the difference?

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3 min.
As we all know, car and home insurance protect your finances in the event of damages. But you should be aware that it’s sometimes better not to make a claim for minor damages. As the insured, you are under no obligation to claim compensation. However, you are obligated to always inform your insurer of any damages, i.e., report it. Here’s why:

Articles 2470 and 2471 of the Civil Code of Québec (CCQ) state that insured persons must report damages and the circumstances surrounding them to their insurer. Therefore, under these articles, you are legally required to report all damages, even minor ones!

Reporting: The importance of Quebec’s automobile claims database

Another good reason to comply with this obligation is the Fichier central des sinistres automobiles (FCSA), Quebec’s automobile claims database. This is a database managed by the Groupement des assureurs automobiles (GAA), an association of automobile insurers, which records all claims involving motor vehicles reported to an insurer in Quebec over the past six years. Insurers use the FCSA to assess the risk associated with a driver who is taking out or renewing an insurance policy.

Suppose you are involved in a fender bender in a parking lot and you decide to pay for the damages out of your own pocket, without reporting it, in the hope of maintaining your good record. However, the other person involved in the accident decides to report the damages. As a result, the damages are added to your FCSA file anyways, but the liability recorded for the accident may not reflect what actually happened.

💡Whether or not you intend to file a claim, report any accident to your insurer so that the correct percentage of liability for the incident is recorded with the FCSA.

Is submitting a claim always the best thing to do?

Not necessarily! Whether it’s a car insurance or home insurance claim, filing a claim for a small amount is generally not worthwhile. Sometimes it’s better to pay for minor repairs yourself. If you can keep your file claim-free, you’ll certainly benefit from preferred pricing!

iA Insurance: Your partner in the event of a claim

At iA Auto and Home Insurance, we believe that good service is based on clarity, trust and prevention. Our advisors are here to guide you, whether you choose to simply report the incident or proceed with a claim.

Why choose iAAH?

  • Personal support tailored to you
  • Easy online claim reporting tools
  • Coverage designed for your life
  • Fair pricing, based on your actual history

In summary: should you report or claim?

Action Mandatory Impact on your file Impact on your premium
Report Yes Ensures the FCSA is accurate No, in general
Claim No May result in higher premiums Yes, depending on the context
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