2. How does my claim history affect my auto insurance? 

There are a number of factors that could affect how much your auto insurance rate could change after a claim. There are a couple of ways a car insurance claim could affect your insurance:

• Increased auto insurance rate at renewal. If you have an at-fault claim, your car insurance cost is likely to go up. The good news is, if you’re deemed not-at-fault, your rate is unlikely to increase. Don’t worry, we’ll get into more detail on this a bit later!
• Insurers could reduce or cancel your coverage. This depends on how many claims you already have, and what they’re for. Things like at-fault accidents or criminal charges could lead your insurer to cancel your insurance coverage.

Did you know? When you lend out your vehicle, you’re also lending out your insurance. If someone else is driving your car and gets into an accident and then you have to file a claim, it could affect your record and your rate – even if you had nothing to do with the incident.

3. Is it better to not file an auto insurance claim?

It’s always best to contact your insurer as soon as possible when an incident happens. They’ll be able to advise you of the best path forward. But, here are a few considerations when deciding if you should file a claim – or not.

When you don’t have to file an insurance claim: 

• The damage is minor like a scratch or dent
• The damage is only slightly more than your car insurance deductible

When you have to file an insurance claim: 

• You cause major damage to your car or someone else’s car
• Someone gets injured because of the car accident
• You suspect criminal activity and/or insurance fraud from the person you got into the accident with

4. Why does your insurance increase after filing a claim?

Home insurance 

You may be wondering why your insurance premium might go up after a claim. Your insurance company takes into consideration if a claim is likely to become a repeat occurrence. If you file too many claims or certain types claims, it’s most likely to have a negative impact on your rate.
Keep in mind, your premium can be impacted by other things regardless of your claims history. Your rate could also increase due to living in a high-risk area where weather events, like windstorms or hail, frequently occur.

Auto insurance 

If you submit a car insurance claim, it isn’t always the case that your premium will increase because of the claim. However, it’s important to note that your premium will increase at renewal due to factors such as inflation, repair costs, regulatory changes, etc.
For example, if you make a claim that falls under your comprehensive coverage, this typically won’t increase your premium. After all, you can’t control things like hail, hurricanes, or a tree branch falling on your car!

That said, certain other types of claims will impact your premium – like collision claims where an accident is your fault. But again, it really depends on the type of claim you submit. This is why it’s a good idea to review collision types and how it could impact your car insurance.

5. Should I get an estimate before filing a claim?

It doesn’t hurt to know how much a repair could cost. But your insurance company can help with this! They can recommend vendors that will provide you with an accurate estimate which will help you decide if you want to pay out of pocket or make a claim. If you decide to submit a claim, working with the recommended vendors may mean you’re covered by a repair guarantee.

Sometimes it makes more sense to pay for the repairs yourself. But you still must notify your insurer because they’ll need to be aware that the risk (your home or car) was damaged. If you take the insurance route, these steps will help guide you on how to file an insurance claim.

Tip! Review your coverage with your insurer so you know what’s covered and what’s not covered.

6. How can I save money on my home and auto insurance – even with a claims history? 

We get it, life can be expensive. So, it’s nice to save where you can. There are some easy ways you can save on your home and auto insurance – even if you have a claims history.

If you have first-claim forgiveness, you might be able to avoid a rate increase but only if you have this coverage on your policy prior to your first claim. Most insurance providers offer this as an additional coverage. This is why it’s always a good idea to review your home insurance policy every so often. Knowing what coverage you have (and don’t have) will help prepare you in case the unexpected happens!

Another easy way to save is by bundling your home and auto insurance. Most providers offer good discounts if you buy both your home and auto insurance with them! You can also check to see if your insurer offers a group or alumni discount. You can save even more through your employer or alma matter.

7. How long does a claim affect your home or auto insurance premium? 

Five years is typically how long a home insurance claim can affect your premium. For auto, it's generally six to ten years. But, double check with your insurance company to confirm.

In a perfect world, you won’t have to deal with any home or car damages – but that’s not realistic. Sometimes things happen, and that’s why you have home and auto insurance. It’s there to ensure you’re protected in the event of a loss when it’s beyond your ability to cover it financially. And your insurer is there to help you every step of the way!