How Does Filing a Claim Affect My Insurance?

Just because you’ve had an accident, doesn’t automatically mean that your insurance rates are going to increase. That’s rule number one. Rule number two is that rule number one can be broken. For the most part, auto insurance companies want for you to continue doing business with them, and as such, filing a claim may not always affect your insurance, but there are some things which will make your insurance premiums go up. First, however, let’s go over the things that generally won’t cause your insurance premium to go up.

There’s a popular misconception that says that as soon as you have any kind of car accident, your insurance is going to immediately jack up your rates, whether you were at fault in the accident or not. In reality, however, insurance companies routinely look at every angle of a car accident and your driving record in order to determine your insurability and risk. For instance, a first-time, minor fender bender for a driver with an otherwise clean driving record will in almost all cases result in no increase in insurance premiums. Accident forgiveness is the name that insurance companies have given to these mishaps, and in some cases, a first-time accident could even be forgiven without the loss of a good driver discount, even if you are found at fault in the accident. While filing a claim, car insurance quotes should be disclosed to the owner of the respective model. Many discounts are offered to the owner to meet with the requirements within a limit. Some records are kept to offer the benefits to the owner of the car model. The handling of the car accident should be excellent. 

A popular type of insurance product which some people believe might cause their insurance premiums to increase is their windshield glass coverage. While some insurance companies might stoop to such measures to increase insurance premiums, the overwhelming majority of insurance companies consider windshield glass replacement a commonplace occurrence, and generally will think nothing of paying the claim.

On the other hand, there are cases in which your insurance rates are going to increase due to an accident, regardless of whether you’ve been a good driver or not. Cases such as these generally take into account what caused the accident. Were you driving recklessly, or under the influence? Was someone seriously injured or killed? The severity of the accident will determine whether you can receive accident forgiveness or not. The other factors which will be taken into account when determining whether your insurance rates will increase or not is just how many claims you have had in the past, as well as how much was paid out on those claims. If you’ve had two accidents per year since your 16th birthday, then you’re going to have to expect that your insurance rates are going to increase because the insurance company is taking on greater risk by insuring you.

A good driving record means everything when it comes to determining the cost of your insurance premiums, but that doesn’t mean that you’re out of luck if you do have an accident. After all, it’s called an “accident” for a reason, isn’t it?

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