How Will Filing Claims Influence Auto Insurance Rates?

One of the things few people know is that how many insurance claims you filed in the past will impact car insurance rates. Bankrate presented statistics showing how filing more claims make drivers pay higher rates. It is the insurance provider that decides if you filed many claims or not. In some rarer situations, the policy will not be renewed. Such a scenario is much more common when filing several claims during very short time frames.

The Influence Of Fault

When it is you who was at fault for the car accident, the rates will 100% go up after filing the claim. But, if you were not the person at fault, it is highly possible that the car insurance company will not raise rates. As an example, when getting the car hit while it is lawfully parked or the car is stolen from the garage, it is not the fault of the owner. However, every single insurance company has different policies so it is very important to know yours.

Let’s say you decide to file an insurance claim and the accident was not your fault. The insurance provider is going to review different factors to determine if the insurance rate has to be increased.

Some of the factors are the number of claims made, how many natural disasters happened where you live, your credit score, and the traffic fines you received. Every single factor can increase rates even if you were not at fault for the latest incident. Fortunately, you will most likely be forgiven when the accident is minor and you do not have any tickets.

Insurance Rate Increases

According to experienced car accident attorneys, after filing the insurance claim, rate increases tend to be between 20 percent and 40 percent. It is possible that this increase remains valid for years. Typically, the increase will last up to 5 years, based on provider policies. When the provider does not want to renew the policy, there is a good possibility you will need to buy high-risk insurance. This does have higher premiums.

Reassessing rates depends on the practices of the insurance company. There are always specific rules that dictate what driving records are unacceptable. Usually, if you have more accidents, the company can decide to cancel the insurance policy. Serious violations can automatically trigger renewal refusal, as is the case with DUI charges.

It has to be added that different claim types will lead to different percentage increases for auto insurance. WalletHub highlights the following increases you can expect:

  • At-Fault Property Damage Over $2000 – An increase of 31%
  • At-Fault Property Damage Under $2000 – An increase of 26%
  • At-Fault Bodily Injury – An increase of 32%
  • Comprehensive Claim With Damage Under $2000 – An increase of 3%

Should I Still File A Claim?

Based on the potential increase of insurance rates, it is possible that the best choice for you is to not file an insurance claim. However, this does vary from case to case. In serious situations, filing the claim is much more advantageous than saving money on monthly auto insurance rates. To determine the best option for you, the best thing to do is to discuss the case with an experienced attorney.

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