Is it worth filing an insurance claim if your premium will go up?

Question

I'm close to a family who was recently carjacked after getting home from a roadtrip and had many personal possessions in the car. Even though they have homeowner's insurance that will cover the replacement cost of all those items, they're still conflicted about whether or not they should file the claim or just take the loss. They have rather valuable items adding up to the tens of thousands.

Now of course, your premium usually goes up after insurance companies have to pay out a lot for a loss. I'm guessing in this case it'll happen as well. With a high deductible of several thousand dollars being subtracted out of the replacement cost, will it be worth it to file such a claim since you'll just have to pay a higher premium? This is the decision that they're struggling with.

Answer 1

Your thought process on this is correct.  You must balance the value of the amount you're likely to receive after the deductible is met.

Another point to consider is whether the policy has limits on certain types of items.  For example, if a laptop, camera, or jewelry were stolen, there are limits to the amount that will be paid out, regardless of the original purchase price or current value.  

Your premium may go up, but it will also depend on whether they've had a history of claims and in general been a good customer for that company.  With most companies, an increase basically lasts three years; if you go that long without another claim, you should regain premium customer status.