How Claim History Can Affect Auto Insurance Rates

Always keep in driving record and the amount of auto insurance claims you file, will be taken into consideration when the rate for your car insurance policy is decided on. If you are deemed to be a more risky driver due to the amount of claims you’ve filed in the past, you may be looking at higher auto insurance premiums. There is a good chance if you are involved in an accident and file a claim when you are at fault, your auto insurance company may look to reevaluate your policy premium.

Evaluating risk with auto accidents and car insurance premiums

Auto insurance company to auto insurance company, policies and guidelines will differ. You always want to check with who your policy is actually through to know the exact details. 

Typically when you are involved in an accident where you are at fault and make a claim against the policy above an amount due to an accident, the insurer may increase you auto insurance premium by an amount stated within your policy paperwork. These figures are obviously going to vary from auto insurance company to auto insurance company, but for the most part you can expect some sort of increase. 

Car insurance companies view your driving record in their own unique way. If you continue to show a poor driving history without a glimpse of a brighter future they may decide not to renew your auto insurance. 

Some accidents are viewed worse than others. Collisions involving drunk driving or severe carelessness are viewed in a different light than traffic tickets. 

It is always best practice to file a report after an accident

If you’re thinking of possibly not filing a claim because you fear a hike in auto insurance premiums, think again. It is an even bigger risk to not report a claim. Even if it seems as if the damage is minor, it’s always best to file a report. 

You open yourself up to lawsuits from the other driver. Now you have nothing on record proving your side of the story. You also put the auto insurance company in danger by not filing a prompt report of an accident. 

Although, not all claims will trigger an increase in car insurance premiums. There are multiple factors that are taken into consideration when determining the outcome. Including your auto insurance company, how the accident took place, who was at fault, and what’s stated within your policy. 

Accidents that are at fault and determined not at fault 

Depending on the amount the auto insurance company has to shell out may affect the amount your rate goes up. Often times a very expensive accident may create more cost on your end as well. When the other driver is at fault the outcome may vary. 

There are car insurance companies out there that may not increase your rate if you are not at fault. Please keep in mind there are what’s called no fault states. In a no fault state there is a good chance you might see an increase in auto insurance rates after an accident. 

Filing an auto insurance claim

Filing a claim versus taking on the burden of the costs to fix the damage is usually the best route and most cost effective. With insurance premiums, they are reevaluated so the accident will be dropped from your record at some point. With a long history of good driving, your auto insurance company will reward you with a better rate again. 

When you’re breaking down what happened in the accident you want to be as clear as possible in telling your side of the story. Be honest and descriptive in explaining what happened. The insurance company will do their own investigation so you want everything to line up. 

Some of the information you will want to have ready for the auto insurance company may be;

• Date and time of the accident
• Details about your policy
• Names, phone numbers and addresses of all parties involved
• License plate and drivers license numbers of the drivers involved