Will my insurance premium increase if I file an auto insurance claim? (2025)
Your insurance premium will increase by around 42% if you file an auto insurance claim for an at-fault accident. How filing a car insurance claim can impact your premiums and how long depends on factors such as the claim’s severity, your driving record, fault determination, and state insurance laws.
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Tracey L. Wells
Licensed Insurance Agent & Agency Owner
Tracey L. Wells is a licensed insurance agent and Farmers insurance agency owner with 23 years of experience. He is proud to be a local Farmers agent serving Grayson, Georgia and surrounding areas. With experience as both an underwriter and agent, he provides his customers with insight that others agents may not have. His agency offers all lines of insurance including home, life, auto, RV, busi...
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UPDATED: Jan 31, 2024
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UPDATED: Jan 31, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Claim severity, driving record, and fault affect insurance rate increases
- Usually, higher premiums after a claim last for three years
- Accident forgiveness programs prevent rate hikes for eligible policyholders
One of the most common questions drivers ask is, “Will premiums increase if you file an insurance claim?” The answer isn’t always simple, as the nature of the auto insurance claim and your driving history impacts your auto insurance rates.
In this article, we’ll discuss how filing an auto insurance claim can impact your premiums and explore ways to keep affordable auto insurance after filing a claim.
Factors Affecting Insurance Premiums After a Claim
Several factors can influence whether your insurance premium increases after filing a claim.
Severity and Cost of the Claim
The more severe the accident or damage, the higher the likelihood that your insurance rates will go up. If the claim amount is significant, insurers may view you as a higher risk and adjust your rates accordingly.
Driving Record
Insurers consider your driving history when determining whether to increase your rates after a claim. If you have a clean record driving record for auto insurance with few or no accidents, your rates might not increase significantly. However, if you have multiple claims or a history of at-fault accidents, expect to see more substantial rate hikes.
At-Fault Driver Determination
If you’re found at fault for an accident, it’s more likely that your insurance premiums will rise. Not-at-fault accidents can also lead to rate increases in some cases, but usually not as much as at-fault accidents.
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How Long Auto Insurance Rates May Be Affected
So, how long does it take for an accident to get off your record?
Typically, insurance companies look at the past three to five years of auto insurance rate factors when calculating rates. After this period, an accident may no longer affect your premiums. Insurance premium increases after an at-fault accident generally last for about three years. It’s essential to maintain a clean driving record during this time to minimize any further rate hikes.
Understanding if Comprehensive Claims Impact Rates
Comprehensive claims cover damage caused by events outside of collisions, such as theft, vandalism, or natural disasters. Filing a comprehensive claim may or may not cause your rates to increase, depending on the insurance company and the claim amount. Research affordable comprehensive auto insurance coverage to find the best auto insurance company for your situation.
Accident Forgiveness Programs
Some insurers offer accident forgiveness programs that prevent rate increases after an accident, even if you’re found at fault. Check your auto insurance policy for this feature or consult with your insurance provider to learn about optional coverage that includes accident forgiveness.
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Lowering Auto Insurance Rates After an Accident
If your car insurance rates have increased due to an accident, consider these and other tips to help lower your auto insurance rates:
- Take a driver’s education course: Many insurers offer auto insurance discounts or lower rates for drivers who complete approved safety courses.
- Shop around for new insurance: Compare quotes and different types of auto insurance coverage from several companies to find the best deal for you.
- Wait for the accident to no longer affect your rates: As long as you maintain a clean driving record during the three-to-five-year window, the accident will eventually stop impacting your premiums.
By exploring these options and being proactive in managing your driving habits, you can work toward reducing your car insurance rates and finding the best coverage that suits your needs.
Deciding Whether to File a Claim After a Minor Accident
To protect your insurance rates, it may be advantageous to file a claim only in the event of catastrophic loss.
For minor accidents with minimal damage, paying out of pocket might be more cost-effective than risking a rate hike by filing a claim.
Brandon Frady Licensed Insurance Agent
On the other hand, failure to report an accident can lead to difficulties in obtaining legal representation and jeopardize your insurance coverage if something more severe comes up. For example, if the damage was more extensive than it first appeared or if health issues arise as a result of an accident, it may be harder to get compensation if you waited to file the claim.
Understanding how auto insurance claims can impact your premiums is essential for making informed decisions about when and how to file claims. By being aware of the factors that influence rate increases and taking steps to minimize their impact, you can better manage your auto insurance costs.
More About Navigating Insurance Premium Increases
Filing an auto insurance claim can lead to premium increases, but understanding the factors affecting rates can help drivers make informed decisions. In many cases, the savings you gain by filing a claim far outweigh the cost of short-term premium increases.
Frequently Asked Questions
Do insurance premiums go up after a claim?
Generally, rates go up after filing a claim unless you weren’t at fault or have an accident forgiveness policy.
What is the best way to report an accident to my insurance company?
Contact your insurance agent or call the customer service number provided by your insurer as soon as possible after the accident. Be prepared to file a police report after the accident, document the scene, and provide details about the incident with your insurance provider.
Does having multiple policies with the same insurer help reduce rate increases after a claim?
Combining insurance policies with the same insurer can sometimes lead to discounts on your overall premiums. While it may not directly prevent rate increases after a claim, having bundled policies could result in lower overall costs.
Does a denied claim increase premiums?
No, a denied claim won’t affect your auto insurance rates. However, if you have a pattern of filing multiple claims, your insurer may increase rates.
Should I get an estimate before filing a claim?
Yes, you should get an estimate before filing an auto insurance claim. If it’s cheaper to pay for repairs out of pocket, you should do so to avoid a rate increase following a claim.
How long does a claim affect your premium?
Generally, you can expect a claim to affect your rates for around three years.
Will a third-party claim affect my insurance?
Filing a third-party claim against someone else’s insurance for damages they caused won’t impact your rates. However, if you’re found at fault for the incident and a claim gets filed against your policy, your rates could go up.
How much does a claim increase your premium?
The rate increase after an at-fault accident varies depending on your insurer and your driving history. On average, you can expect a premium increase of around 42%.
Does it hurt to file an insurance claim?
Usually, insurance claims lead to higher rates, so it’s best to avoid filing one unless absolutely necessary.
What’s the difference between an insurance premium and an insurance claim?
An insurance premium is the monthly amount you pay to maintain auto coverage. On the other hand, an insurance claim is a request for coverage reimbursement after an accident.
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Tracey L. Wells
Licensed Insurance Agent & Agency Owner
Tracey L. Wells is a licensed insurance agent and Farmers insurance agency owner with 23 years of experience. He is proud to be a local Farmers agent serving Grayson, Georgia and surrounding areas. With experience as both an underwriter and agent, he provides his customers with insight that others agents may not have. His agency offers all lines of insurance including home, life, auto, RV, busi...
Licensed Insurance Agent & Agency Owner
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.