Getting into a car accident can cause a range of emotions. It can be an annoyance if it’s a fender bender, and if it’s something more serious, it can be nerve-wracking and scary. But after the initial impact, the troubles don’t stop there. Then you have to worry, “Will my insurance go up if I file a claim?” While you can’t predict exactly how your coverage may or may not change following a claim, it’s important to know the possibilities.
Does insurance go up after a claim?
If you get into a car accident and are considering filing a claim, you want to know the answer to an important question: Does insurance go up after a claim?
The overarching rule when it comes to the impact of claims on car insurance coverage is that every policyholder’s situation is unique.
That means depending on your circumstances, your premium may or may not change. Here are a few contributing factors insurers consider when deciding the impact an accident may have on your rate:
- The terms of your policy
- Whether you were at fault for the accident
- How many claims you’ve filed in the past
- Insurance regulations in your state
It’s important to know what type of coverage you have and what is covered or not. Be sure to review your policy and get familiar with the terms and conditions, so you’re not surprised in the event of a post-accident premium hike.
Honesty is the best policy with your insurer
If you’re wondering “Does insurance go up after a claim?” it depends on the situation. But it’s important to note that your coverage and any potential pricing adjustments also could rely on the accuracy of facts that you, as the insured, present to your insurer when you purchase your policy.
It’s critical to keep your insurer regularly updated about any changes — like additional drivers, or vehicle updates — to avoid any potential coverage issues or delays in claims processing.
What impacts your car insurance premium
Wondering will my insurance go up if I file a claim is a normal question after an accident. To understand what might happen, it’s key to know what impacts your car insurance premium.
Your driving track record is really what insurers consider the biggest predictor of your future driving behavior, so the more claims you rack up, the more likely your premium is to rise — especially if you’ve been at fault for accidents in the past.
If you’re filing a current claim for an accident that wasn’t your fault, your insurer will consider that information, but there are no guarantees regarding your future rate.
However, if you were at fault, you should know that certain behaviors are generally considered a lot more serious — and therefore more reprehensible — than others. Reckless or impaired driving, for example, may result in a major price increase (or even a cancellation of coverage, depending on the terms of your policy).
Whether you’re rear-ended in a minor fender bender or involved in a major pileup as the result of your own actions, it’s essential to report the accident to your insurer. This will help provide your carrier with all the information they need to properly investigate the issue and do everything possible to protect you if the other driver involved files their own claim.
Should you file a claim or not?
Does your insurance go up after a claim or not? It certainly can, depending on the situation, which can make you question whether to file a claim or not. There are some important things to consider.
First, how much is your deductible? If the cost to repair the vehicle is less than your car insurance deductible, it may not make sense to file a claim.
Secondly, review your driving history and claims history. If this is your first-ever claim and you’re not at fault, it may not impact your rate. But if you have a history of frequent claims and are found at fault, you may be considered a risk and your rates may increase.
You can talk to your insurance company about their policies around filing a claim and certain events. Just be aware that if you talk to your insurance agent insurer about an incident and don’t file a claim, they may need to report that.
In general, it’s best to file a claim in the event of a total loss. If the damage is negligible or lower than your car insurance deductible, it may not be worth it.
Though you may or may not decide to file a claim, depending on your state and the rules, if there is damage over a certain amount or injury or death it needs to be reported to the local Department of Motor Vehicles (DMV) or similar authority. If you do file a claim, you’ll also want to file a police report as well.
Consider the financials of your deductible and premiums
Your deductible amount can affect your car insurance premium and inform whether you file a claim or not. If you have a low deductible, you may have higher insurance rates. If you have a small $500 deductible, but the damage is less than that, it doesn’t make sense to file a claim.
One way to save money with car insurance is to opt for a higher deductible which can lower car insurance premiums. You can have your deductible amount as part of your emergency fund and easily pay that in the event of an incident and get the rest covered by your insurance.
The bottom line
Any type of accident can be a jarring event. But the added pressure and stress, worrying will my insurance go up if I file a claim can make it even worse. It’s possible that your rates may go up, so consider all the factors above before filing a claim. The fewer claims you file, the less risky you may appear to the insurer. If you’re looking for new insurance coverage if you want to save money, and you drive less, then pay per mile insurance is right for you.. If you’re still paying for miles you aren’t driving, rethink your auto insurance coverage and get a quote with Metromile today.