Does Auto Insurance Rate Increase After Filing a Claim?

Changes in auto insurance premium after filing a claim

Does Auto Insurance Rate Increase After Filing a Claim?

If you’re involved in an accident, you might be wondering if filing a claim with your auto insurance company will cause your premiums to increase. The unfortunate truth is that filing a claim could potentially lead to higher premiums. However, several factors can influence how much your premium will go up. Let us discuss how filing a claim can impact your insurance rates and what you can do to minimize your premiums.

Why Do My Auto Insurance Premiums Rise Post-Accident?

If you file a claim, your insurer may consider you risky, thinking that you are more likely to get into an accident in the future and, as a result, may charge you more. However, how much your premiums will increase depends on several factors, such as the severity of the accident and the type of coverage you have. If you have comprehensive coverage, then your premiums may not increase as much as if you have only liability coverage. If you were involved in a major accident, then your premiums may increase more than if you were involved in a minor accident.

Do I Need Accident Forgiveness Coverage?

Accident forgiveness is an optional auto insurance policy add-on that allows drivers to avoid a premium increase after an at-fault accident. Accident forgiveness works by forgiving the first at-fault accident for the insured driver. This means that the insurer will not increase the insured driver’s premium after the first at-fault accident. It’s important to note that accident forgiveness does not cover all types of accidents. For example, if the accident was caused by reckless driving or driving under the influence, your insurer may increase your premiums.

Factors That Influence Auto Insurance Premiums After a Claim

When it comes to determining how much your premium will increase after a claim, several factors will come into play, including:

  • The cost of the claim – Your premiums may increase if your claim is expensive.
  • Your driving history – Multiple accidents and violations may result in higher premiums.
  • Who is at fault – Your premiums will increase if you are found to be at fault.

However, some insurers may offer discounts or other incentives to customers who have not filed claims over a certain period or completed a driver’s education course. Ask whether you are eligible for such discounts to offset any potential premium increase.

Insure Your Car with KSD Insurance

If you are looking for an all-inclusive auto insurance policy that covers you and your vehicle at all times against every risk, contact Kevin or Merci here at Kevin S. Dougherty Insurance. We will help you find the right policy according to your specific needs.

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