Filing a claim for a car insurance settlement can lead to an increase in your premium. The exact increase will vary depending on the insurance company and the severity of the accident. Insurance companies consider several factors when determining premiums, and making a claim is just one of them.
Factors affecting car insurance premiums after a claim
These factors affects car insurance rates after a claim:
- Who was at fault: If you were at fault in the accident, your insurance premium is more likely to increase. On the other hand, if the accident was not your fault, your premium may remain unaffected.
- Claim frequency: If you have a history of frequent claims, it may lead to higher premiums, as it suggests a higher risk profile to the insurance company.
- Severity of the claim: If the settlement claim was for a substantial amount, there’s a higher chance of an increase in your premium.
Before making a claim, assess the damage and compare it to your deductible. If the repairs are close to or below your deductible amount, it might be better to handle the cost out of pocket to avoid potential premium increases.
If you find that your current insurance provider raises your premium significantly, consider shopping around to get a better rate.