Will My Auto Rate Increase After Filing a Claim? | Travelers Insurance (2024)

FAQs

Will My Auto Rate Increase After Filing a Claim? | Travelers Insurance? ›

As a general rule, the short answer is that filing a claim with an insurance company after an accident will not raise your rates as long as the accident was not your fault. This holds true when you file a claim with the insurance company of the at-fault driver, as well as your own.

Home and auto insurance companies can raise your premium for filing most types of claims. Auto companies can raise your premium if you've had accidents or gotten traffic tickets. Home and auto companies can't charge you more for: Claims you file that the company didn't pay.

Under California law, an insurer cannot increase your premiums when you aren't at fault.

Choosing a higher comprehensive deductible generally means your premiums will be lower, which can save money upfront. However, you may have to pay more out of pocket toward a covered claim. Likewise, choosing a lower comprehensive deductible means the amount you pay for coverage will increase.

Some factors that affect auto insurance rates are specific to your policy (e.g., driving violations, claims, young drivers on your policy, type and age of vehicles you drive, etc.), while other factors—inflation, parts and labor shortages, and an overall increase in accidents—are affecting the majority of the industry.

In general, it's better to report an accident to your insurance company than not to, especially if another party is involved. But there are some instances where not filing a claim makes more sense.

If your vehicle was the only one to sustain damage — meaning that no other parties were involved — it's a good idea to get an estimate before making a claim.

That said, you'll usually be looking at an increase of 20%-50%. Unless it's protected, you should also expect to lose any no-claims discount you've built up. Even if it's protected you could still see your premiums rise – this is because a no-claims discount is a reduction from a baseline car insurance premium.

Every insurance company sets its own benchmark for triggering a cancellation, but it is more likely that you'll face cancellation or non-renewal if you've made three or more claims within a three-year period.

Too many insurance claims

If you file claims often your insurer may view you as a greater risk, which may lead them to non-renewing your policy. Insurers may not drop a customer after their first one or two incidents.

Will a comprehensive claim raise my rate? ›

Yes, a comprehensive claim might increase your rate, depending on your insurer and state. Comprehensive claims include non-collision events like car theft, car vandalism, car fire, chipped/cracked windshield, hitting an animal, and acts of nature.

Accidents can happen at any moment, so if you don't have a lot of savings or expendable income, a lower deductible is usually a safer choice to avoid financial stress after an accident.

Credit history: Insurance providers view drivers with low credit scores as higher risks, so they often pay higher insurance premiums in most states. Gender: The average car insurance cost for men is generally higher in most states because men tend to get into more car accidents than women.

USAA, Nationwide, Travelers, Erie, Geico and Progressive are the cheapest car insurance companies nationwide, according to our analysis.

Your driving habits

If you've been in multiple accidents, your cost for car insurance is likely to be higher than someone with a clean driving record. If you're a new driver and have not had insurance before, chances are you'll pay more for car insurance.

Your particular driver profile, which includes factors like where you live, your age and your driving record, influences what you pay for car insurance. But rising car repair costs and an increase in disaster-related claims are significant reasons why car insurance rates are surging for many drivers.

That said, you'll usually be looking at an increase of 20%-50%. Unless it's protected, you should also expect to lose any no-claims discount you've built up.

If the number and cost of claims increase, you can expect insurance premiums to also increase. The cost of claims is comprised of the pay-outs for injury claims, medical inflation, legal costs and the costs of repair, e.g., parts and labour.

Policies with lower deductibles typically have higher premiums, meaning you'll pay more each month for your insurance coverage. However, if you have a higher deductible, you may be able to save money on your premiums but may be responsible for paying more out of pocket if you need to file a claim.