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Will Your Insurance Go Up If You File a Claim?

woman debating with insurance on raising premiums after an accident

The answer is: probably not. Many factors determine whether your insurance premiums will increase after filing a claim. Let’s break it down so you can better understand what to expect.

When Your Insurance Likely Won’t Increase

If you weren’t at fault for the accident, your insurance probably won’t increase. Insurance companies generally do not penalize drivers for accidents caused by someone else. Here are situations where you likely won’t see a rate increase:

  1. You were rear-ended by another driver.
  2. The at-fault driver admitted fault or was clearly negligent.
  3. Your insurer successfully recovered costs from the other party’s insurer.\

Insurance companies often refer to these situations as “not-at-fault claims.”

When Your Insurance Might Increase

Even if you weren’t at fault, your rates might still go up. Insurance companies calculate premiums based on risk. Here are some situations where a rate increase is possible:

  • You’ve filed multiple claims recently.
  • Your insurance company has strict policies on claims frequency.
  • The claim involves expensive property damage.

Your driving history and the type of insurance you have also play a role.

Factors That Influence Premium Increases

Insurance companies look at several factors when deciding whether to raise your rates:

  1. Claim History: A history of frequent claims can label you as high-risk.
  2. Fault: At-fault accidents are more likely to increase your premium.
  3. Claim Amount: Large payouts increase the likelihood of a rate hike.
  4. Policy Details: Some policies offer accident forgiveness for first-time claims.

How to Avoid a Rate Increase

While rate increases aren’t always avoidable, you can take steps to minimize the risk:

  • Avoid making multiple claims when possible
  • Choose a policy with accident forgiveness.
  • Pay small damages out of pocket if possible.
  • Maintain a clean driving record.
  • Shop around for competitive rates if your premium increases.

Is It Legal for Insurers to Raise Your Rates?

There are no laws preventing insurers from raising rates after a claim. However, state regulations require insurers to explain rate changes clearly. If you suspect your increase is unfair, contact your state’s insurance department for guidance.

Why Filing a Claim Still Makes Sense

Even if your rates might go up, pursuing a claim is typically the best financial decision. Insurance exists to protect you financially after an accident. Paying for expensive repairs or medical bills out of pocket can be a bigger burden than a potential rate increase. Also, a claim can be worth meaningful compensation that could easily cover a rate increase.

What To Do After an Accident to Avoid Premium Increases

After an accident, follow these steps to protect yourself and your insurance standing:

  1. Document the scene with photos and videos.
  2. Exchange information with the other driver.
  3. Contact your insurer to report the accident.
  4. Save all receipts and repair estimates.

The Short Answer

Filing an insurance claim doesn’t always mean your rates will increase. If you weren’t at fault, chances are you won’t see a premium increase. Even if your rates do rise, it’s usually worth filing a claim to protect your finances and determine the value of your claim for compensation. Always weigh the pros and cons before making a decision, and choose an insurance policy that fits your needs.

How to File an Accident Claim

The accident injury attorneys at Sobo & Sobo are here to help. Call or contact them online for a free consultation to discover the value of your case. You can reach them 24/7 at 855-468-7626, or schedule an appointment here.