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Will My Auto Rate Increase After Filing a Claim?


crashed car

Will My Rates Increase


The answer is most likely, Yes. Unless you have purchased Accident Forgiveness (not available for everyone), then the answer will most likely be , yes, your rates will increase.


If you file a claim and the carrier makes a payment, it is very likely that your rate will increase at renewal. Sometimes you may not be surcharged for claims that paid out $0. However, if your carrier did pay out, you are likely to pay a higher auto insurance premium for the next 3 to 5 years.


Why Are My Rates So High


Here are a few factors carriers consider when calculating auto insurance premiums:


Your Driving Record


If you’ve been involved in fender benders over the last few years, it’s likely that your premium will be higher than someone who hasn’t had any accidents. We also look how long you’ve been driving and whether you’ve had any traffic violations.


It may be time to consider becoming a more responsible driver and take advantage of telematic devices that will help keep you on track and offer a hefty discount.


Where You Live


Every state regulates insurance rates. Your rates could be higher or lower depending on the state you live in. Rates also vary based on your zip code. Are there more car thefts in your area? Is your area more congested, increasing the likelihood of an auto accident?


Your Vehicle


Newer cars have technologies that make them safer, but these new technologies are also more expensive to fix if you’re in an incident. This can impact your rates.


Other Drivers On Your Policy


Just added a young driver to your policy? Since they have less experience, they are costly to insure. As these drivers gain experience, your premium could start to go down again.



Hope this helps!


Disclaimer: The content contained in this blog is for informational purposes only. It should not be considered insurance advice since every client's needs and circumstances are different.. Bergen Insurance Group, LLC makes no representation as to accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All statements represent the sole opinion of the author and is provided on an as-is basis. For an actual description of all coverages, terms and conditions, refer to your insurance policy.”

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