After being involved in an accident, many people are quick to worry about how much their car insurance will go up. It’s important to understand that your car insurance premium will likely increase after filing a claim. The amount of the increase will depend on a number of factors and can vary widely depending on your insurance company and state laws.
In this article, we’ll discuss some of the main reasons why car insurance rates go up after a claim is filed, and provide tips to help you save money on your premiums. Read on to learn more about the realities of filing a claim and how you can save money when it comes time to renew your policy.
Types of Car Insurance Claims
There are two types of car insurance claims: first-party and third-party. First-party claims are made by the policyholder, while third-party claims are made by someone else.
First-party claims are typically covered by your comprehensive or collision coverage, and can include damages to your car from an accident, theft, fire, or weather. Third-party claims are usually covered by your liability insurance, and can include damages to another person’s property or injuries to them that were caused by you.
Most insurance companies will give you a grace period for making a claim on your policy, but after that, your rates will likely go up. The amount they increase will depend on the severity of the claim and your driving history.
How Much Does Car Insurance Increase After a Claim?
Car insurance rates can go up by as much as 20% after a claim, depending on the severity of the claim and your insurer. If you have a clean driving record, you may be able to shop around for a new policy with a lower rate.
Factors That Affect How Much Your Car Insurance Rate Increases After a Claim
There are several factors that affect how much your car insurance rate will increase after a claim. One of the most important factors is the severity of the claim. If you have a minor accident with only minor damage, your rates may not go up at all, or may only increase slightly.
However, if you have a major accident with extensive damage, your rates will likely increase significantly. Other factors that affect how much your car insurance rate increases after a claim include: whether you were at fault for the accident; the type of claim (e.g., collision vs. comprehensive); your claims history; your insurer’s policies; and your state’s laws.
Tips to Help You Save on Car Insurance After a Claim
If you’ve ever filed a car insurance claim, you know that your rates can go up as a result. But there are things you can do to minimize the impact on your wallet. Here are a few tips to help you save on car insurance after a claim:
-Shop around for a new policy: Don’t just accept the first rate increase from your current insurer. Get quotes from other companies and see if you can find a better deal.
-Consider raising your deductible: This may seem counterintuitive, but by increasing your deductible you can actually lower your overall premium.
-Bundle your policies: If you have multiple insurance policies (e.g., auto and home), consider bundling them together with one company. This can often lead to discounts of 10% or more.
-Ask about discounts: Many insurers offer discounts for things like having a clean driving record or installing anti-theft devices in your vehicle. Be sure to ask about any available discounts so you can take advantage of them.
Conclusion
Car insurance rates can go up after a claim, but it is important to understand the details of your policy and the specifics of your claim first. It is also wise to shop around and compare car insurance quotes from different providers so you can find an affordable option that still meets all of your needs. By doing this research in advance, you will be more likely to save money on car insurance, even after filing a claim.
