What happens to my insurance rate after filing a claim?

What Happens to My Insurance Rate After Filing a Claim?

Filing an insurance claim can be a daunting decision, especially if you're unsure about the potential impact on your future premiums. Understanding how claims affect your insurance rate is crucial for making informed decisions about when and how to file. In this article, we’ll break down what happens to your insurance rate after filing a claim, exploring different scenarios and providing actionable advice.

How Claims Affect Insurance Rates

When you file an insurance claim, particularly for an auto incident, it often leads to a rate increase. However, the extent of the increase depends on several factors, including the nature of the claim, your driving history, and state regulations.

At-Fault vs. Not-At-Fault Claims

• At-Fault Accidents: If you're found responsible for an accident, your insurance rate could increase significantly. In 2025, the average rate increase for at-fault accidents ranges from 44% to 58%. However, this can vary widely depending on your location and insurer. For example, drivers in New Jersey may face post-claim increases of up to 80%, while those in Rhode Island might see only a 15% rise.

• Not-At-Fault Accidents: Generally, these do not lead to a rate hike, but there are exceptions. Some states, like Oklahoma, prohibit rate increases for not-at-fault claims. Nevertheless, a hit-and-run claim might still result in increased premiums even if you were not at fault.

Comprehensive Claims

Comprehensive claims, covering incidents like theft, vandalism, or natural disasters, typically have a smaller impact on premiums. You might see an increase of 0% to 10%, depending on the severity and frequency of claims.

Real-World Examples

To illustrate how claims can affect insurance rates, consider the following scenarios:

• California Driver: After filing a claim for a minor at-fault accident, their premium💡 Definition:The amount you pay (monthly, quarterly, or annually) to maintain active insurance coverage. increases by 45% for the next three years. This significant rise highlights the impact of at-fault claims in states with higher insurance costs.

• Oklahoma Driver: After filing a not-at-fault claim, their rate remains unchanged due to state laws protecting drivers from such increases.

• Hit-and-Run Incident: A driver files a claim after their parked car is hit. Despite not being at fault, the driver sees a premium increase💡 Definition:An increase in insurance premiums after filing a claim or other risk factors change. because a claim was filed.

Common Mistakes and Considerations

When considering whether to file a claim, keep these points in mind:

• Delayed Increases: Rate hikes typically occur at policy renewal, which means you may not see an immediate impact after filing a claim.

• Shopping Around: After a rate increase, consider comparing quotes from different insurers. Some companies might offer better rates, even after a claim.

• Accident Forgiveness: Some insurers provide accident forgiveness, protecting your rates from increasing after a first-time at-fault accident. Check if this is an option with your provider.

• No-Fault States: In states with no-fault insurance laws, rates may increase regardless of fault due to the way claims are processed.

Bottom Line

Filing an insurance claim can lead to a rate increase, especially in the case of at-fault accidents. The severity of the increase depends on factors like claim type, location, and insurer practices. Before filing a claim, weigh the potential rate hike against the cost of the claim itself. Be proactive by understanding state regulations and comparing insurer policies to minimize financial impact.

By staying informed and considering your options💡 Definition:Options are contracts that grant the right to buy or sell an asset at a set price, offering potential profit with limited risk. carefully, you can navigate the complexities of insurance claims with confidence and make decisions that align with your financial goals.