which claims increase car insurance the most?

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Asked March 22, 2016

1 Answer


Insurance claims all have their own impact on an insurance policy, and it is quite difficult for people to stomach the idea of filing a claim if they believe that their insurance premiums will rise. You have to take a long and hard look at the claims you plan to file with your insurance company to determine whether they are worth it or not. This answer gives you a very clear understanding of which claims are worth it, which claims are indifferent and which claims will raise your prices too much.

Every Claim Matters

Your insurance company is watching every claim you file, and they are sure to change your rates based on claims you make. Claims could change your premium by just a few cents, or the claims could cause the insurance carrier to accelerate the price of your insurance to unseen levels. You should not assume that an insurance claim will not impact your price because you do not believe that you are at fault. An insurance company is trying to make as much money as possible, and they use their own formulas to determine how much your premium will rise.

How Much Is Your Car Worth To You?

The vehicle you are filing a claim for has a value that is easy to ascertain. You may check a blue book site that gives you the price of your car on the market today, and you must ensure that your claim is not higher than the value of the car. Claims that exceed the value of a vehicle will surely cause your premium to rise, and claims that come close to the value of a vehicle will be quite costly.

How Much Does The Repair Cost?

You may go to a service center where the insurance company will ensure that they get the cheapest repair possible, or you may go to a shop that will allow you to get a cheaper repair based on their assessment. Getting the most expensive repair possible will force your insurance company to pay out more money, and you will start paying more for your insurance based on these pricey claims.

You are often much better off when you go to an insurance service center that will regulate your repairs to ensure that you are not overpaying. The insurance company does not want to increase your payments, but they will change your prices based on the repairs you receive. A repair that might cost $200 at one shop could cost $2000 at a another shop. A car that is safe to drive does not require an exorbitant repair, and your insurance will take kindly to a repair that is not too expensive.

How Many Claims Have You Filed?

Filing claims often with your insurance company is cutting into their profit on your account. You are paying into your insurance company's coffers to ensure that they can pay massive claims when they are necessary, but you cannot nickel and dime your insurance company while expecting your premiums to remain the same. Your premiums must rise in order for your insurance to keep paying every claim, and you must decide if every claim is truly worth the money. There are quite a few people who will avoid claims that are simply not worth the trouble.

Were You At Fault?

Being at fault in an accident will increase your insurance premiums automatically, and your insurance company likely has grace period for every accident or ticket you have ever gotten. Accidents that resulted in claims will stay on your insurance record for a period of a few years, and you must ask the insurance company how long their grace period is. You will pay higher premiums until those accidents have fallen off your record, but you will continue that period of higher prices every time you are in an accident that is deemed your fault.

A Preponderance Of Accidents

Some drivers have incredibly bad luck, and they are in accidents far more often than they are comfortable with. These drivers are constantly filing claims for accidents that happened due to no fault of their own, but the insurance company must keep paying these claims. The insurance company has no choice but to raise your premiums if you happen to have bad luck. They cannot afford to keep paying your claims if you are filing regularly, and your prices will rise until these accidents fall off your record as before.

Decide If It Is Worth It To You

Every wise driver makes a value judgment on their car when an accident occurs. You must choose not to file a claim if the car is simply not worth the increase to your insurance, or you must choose a cheap repair that does not put out your insurance company. Your wisdom during this process helps you save money, and you will avoid the uncomfortable event when your premium goes up after every renewal period. You might find yourself in a position here your premiums have gotten so high you do not want to pay them, and now you are forced to search for new insurance which might not be any cheaper.

Ask An Insurance Agent For Help

Insurance agents have a wealth of knowledge that they may dispense at any time. Ask an insurance agent what they believe your best course of action is for your current policy. Agents know about how much your premiums will rise, and agents will help you choose the right course of action for your car/policy. You may choose to repair the vehicle based on your agent's advice, or you may move on from the vehicle if it is simply not worth your time and trouble.

Every insurance company has the right to change your policy prices at any time, but prices typically rise after accidents. Determine the sort of claim you are about to file, and ask your insurance agent for assistance before potentially raising your insurance rates unnecessarily.

Answered March 25, 2016 by JoshB

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