Will my insurance premium increase if I file a car insurance claim?

Being in a car accident is an upsetting experience, especially if there is a lot of damage to your vehicle, and even more so if you were injured. If this recently happened to you, you might be wondering, “Will premiums increase if you file an insurance claim?”

Keep reading to learn the answer to this question, as well as additional tips and information about how to correctly handle a car accident.

Premiums May Not Increase if You File an Insurance Claim

As the Insurance Information Institute notes, it is not guaranteed that your premiums will increase if you file an insurance claim.

Auto insurance companies have different rules about what is considered to be a bad driving record, and how many claims you are able to make before your premiums will automatically go up. Your insurance company will look at a number of factors before making this decision.

Reasons Why Your Premiums Will Increase if You File an Insurance Claim

Your auto insurance company will definitely look at your driving record, the types of car insurance you have, the reasons for the accident, and its own policies when deciding if your rates will increase when you file an insurance claim.

In general, if you are considered to be a risky driver, and being in car accidents that are your fault may put you in this category, your auto insurance company may consider raising your rates after you file a claim.

Also, when you file a claim that is more than a certain amount of money, and the accident is your fault, the insurance company may raise your premiums by a specific amount.

This can vary from company to company, so if you are concerned that your rates will increase significantly, you can contact your insurance agent, if you have one, with your questions.

Read more:

• Why do Car Insurance premiums increase?
• Will Car Insurance rates increase after an accident?

It Is Best To Report the Accident, Even If Your Premiums Increase If You File an Insurance Claim

If you are worried that your premiums will increase if you file an insurance claim, you might understandably wonder if you should skip reporting the accident. While this may seem reasonable, especially if the damage is minor, it may backfire on you in a significant way.

Other people who were involved in the car accident may sue you months after it happens, and not reporting the incident will make it more difficult for your auto insurance company to get the evidence it needs to assist you.

The company may also cancel your policy if it learns you were in an accident and you didn’t notify your agent. This is why knowing when and how to file a car insurance claim is so important.

Premiums May Increase if You File an Insurance Claim for a No-Fault Accident

This may seem unfair, but the amount you pay for car insurance coverage may increase if you file an insurance claim for an accident that was not your fault. While your insurance company should work with the at-fault person’s insurance company, your own company’s rules may determine that you are a risky driver.

Final Thoughts on Premiums Increasing if You File an Insurance Claim

One of the reasons you have auto insurance is to help cover your expenses if you are in a car accident. Even so, it is common to wonder if your premiums will increase if you file an insurance claim.

The short answer is “Not always.” Your insurance company will look at a number of facts before deciding if your rates will go up.