CAN AN INSURANCE CLAIM RAISE YOUR RATES?
If the repair costs for your car are more than your collision deductible, you’ll have to weigh whether the insurance payout is worth the risk of a rate increase later. Whether your insurance rates will go up after a claim depends on your previous claims history, your insurance company rules and even your state, which may regulate the circumstances under which insurers can add a surcharge to your rate. Surcharges — industry lingo for premium hikes — typically last three to five years, and may gradually decrease over that period.
Whether your insurance rates will go up after a claim depends on your previous claims history, your insurance company rules and even your state.
The only way to find out how much your insurance company will raise rates is to ask for its surcharge schedule or talk to your agent. Bear in mind, though, that your insurance company will make note of the inquiry.
“Auto insurers keep close track of their interactions with customers, so the inquiry will be logged into their system,” says Michael Barry, a spokesman for the industry group Insurance Information Institute. “It is unlikely, however, that an auto insurer would raise a policyholder’s rate because of a single inquiry which did not result in the filing of a claim.”
Whether or not your rates go up after filing a car insurance claim, it’s always a good idea to compare car insurance quotes at policy renewal time to make sure you’re getting the best price.