There is something inherently thrilling about cars and speed, especially if road conditions are good and the motor is purring like a powerful cat. But a driver should beware of speeding; aside from the increased risk of becoming involved in an accident, there's the prospect of getting caught above the speed limit. And if you get caught speeding enough times, you will see how tickets affect your auto insurance rates. We're talking about a rise of possibly hundreds of dollars in your premium.

Almost everyone probably believes that having auto insurance is a blessing, and in most cases they would be right. Insurance is meant to protect you financially from paying out large amounts of money as a result of an accident. If you are up to date with your premium payments and if you meet the insurer's requirements, you may be saved from paying for the high cost of medical treatment, car repairs, and other such expenses. However, there are some situations where it would be prudent to think twice before filing your claim.

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Many individuals cut down on insurance premiums by paying a larger deductible; that is, the amount that he/she pays on the claim before the insurance kicks in to pay the rest of it. The general rule is that the higher the deductible, the lower your insurance premium will be. If the damages caused by the accident are lower than your deductible, you might be wise to decide not to declare that accident to your insurer and pay for the damage out of your own pocket.

Why is this? Isn't it standard operating procedure to call the insurer when you're involved in an accident? It used to be so. But these days, even minor claims go on your record and the more claims you make, the greater the likelihood that your insurance premiums will be increased at the time of renewal. Not only that, problems may arise if you file one or two small claims and find later that you need to file a larger claim.

If you already have a spotty driving record, you had again better think twice before filing your claim. This is because your insurer already has ammunition against you in the contents of that record, and you would just be giving them more reason to increase your premiums or cancel your policy altogether. Although some companies make allowances for long-time customers by overlooking their first at-fault accident, others can react quite severely to those who file even small claims.

If, however, you hit or were hit by another occupied vehicle, or if you caused major damage to property, or if injuries resulted because of the accident, your best bet would be to inform your insurer immediately before the other party does. It's important to give your insurance company your version of the events that transpired so that the claims settlement process can be accomplished as quickly as possible.

But if you only dented your fender slightly when you backed up against a pole or grazed the side of an unoccupied car and the resulting damage is less than your deductible, think twice before filing your claim. It might seem frustrating to have to pay for repairing your car out of your own funds, but remember that it can save you a substantial amount of money in premiums in the long-term.

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