Will Filing a Claim Increase My Auto Insurance Premium?
Auto insurance is a necessity for any driver, but one of the main concerns policy holders often have is whether filing a claim can cause increased rates. Often, drivers will choose to come to an agreement after a crash or pay for minor damage themselves without involving their insurance agents, for fear of policy premiums rising.
Whether or not your rates are likely to increase due to making a claim depends on multiple factors. Read on to find out more.
The Fault of the Accident
Whether or not you are at fault in an accident can often have a big impact on whether your insurance company feels it is necessary to increase your rates. The logic behind this is that if the accident was not your fault, you’re less likely to require frequent pay-outs from further accidents in the future.
The Extent of the Damage
The more costly the damage of your accident, the more your insurance will have to pay out, and the more likely it will be necessary to increase your insurance premium. However, if a big accident does occur, the ability to make a claim is a safety net like no other.
Driving Safety and Record
Insurance companies value safe, reliable drivers, and will often take into account whether your driving history is suggestive of this trait.
If you’ve had multiple speeding tickets and been involved in numerous accidents, the chance your rate will increase after an accident may be higher. However, if you’re a long-term customer with no history of incidents, it’s less likely your insurance company will deem this necessary.
Some insurance policies come with accident forgiveness for smaller claims. Ask your insurance agent if they have a plan that offers accident forgiveness on small claims.
So what does this mean for you?
Claims for an accident do not necessarily mean your insurance rates will increase, and the benefits of paying for the cost of damage independently often outweigh this concern.
Having an in-depth understanding of your policy and a trusted insurance agent you can call on are hugely important. Make sure you know your policy and talk to an agent before you need to file a claim so that you can make the best financial decision should an accident occur. If you would like more information on whether or not your particular situation will cause your insurance premium to increase, call Insure on the Spot today! Chicagolands most affordable auto insurance and SR22 insurance in Illinois