How do collision claims affect insurance

Examples of collision claims include:. Below are the average rates for a six-month policy from different insurers:. In most cases, filing a claim will cause your auto insurance premiums to rise by an average of 3 percent to 32 percent for three to five years, says WalletHub.

The extent of the rate increase depends on the following factors:. The most important factors influencing your car insurance premiums following an accident are the type and amount of claim you made. Your premiums won't jump as much if you aren't the at-fault party, or if the accident is beyond your control, but you'll likely still see a rise in your insurance costs.

Find out below how different types of claims bump up your auto insurance rates:. Although it may seem unfair, insurance companies have the right to increase your auto insurance rates after you make a claim, even if you aren't at fault in the accident. They determine your premiums based on risk, and statistical data shows that drivers who have recently made a claim are more likely to file another in the future.

Some car insurance providers charge more than others when it comes to premiums for drivers with previous non-at-fault accidents. Progressive charges the most, increasing rates by an average of over 16 percent, while State Farm doesn't raise prices for not-at-fault drivers. If you have multiple comprehensive claims, Insurance Panda recommends that you take these steps to lower your auto insurance premiums:.

It's important to be cautious when you're driving. Whether they're comprehensive or not, the more claims you file, the more likely an insurance company will raise your premiums or cancel your policy. If you really need to use your comprehensive coverage , you should do the following before you file a claim:. While you don't want to be underinsured and risk putting yourself in a dire financial situation in the event of an accident, you should also avoid buying more coverage than necessary.

Even if the police decide not to lay blame on any party, in terms of driving charges, your insurer may still determine that you were partially or fully at fault. If you want to know more, you can read all about no-fault insurance. The crash will be recorded on your insurance record and can have an impact on how much you pay each year.

You may feel safe seeing your car insurance not rise a month after the claim, but pay careful attention at renewal time. If you notice an increase in your premium, look to compare auto insurance quotes from other providers.

In fact, some insurers offer an endorsement or insurance policy add-on for a first claims forgiveness. After one collision, you may suffer from a little PTSD and be even more careful.

Use this as a way to limit the potential for an accident. Unsurprisingly, your insurance will be more expensive. In fact, sometimes it is cost prohibitive. You may need to give you up your car. There are ways to save by bundling with your home insurance , installing safety devices, and simply driving less. Your insurance is attached to that car. So, if your friend has an at-fault crash in your car, their crash goes on your insurance record and your premium could increase because of that.

Be very careful with whom you choose to lend your car. Another significant cost is if they have no insurance of their own, and the cost of the claim against you is more than your own coverage. This is one way you can try to offset premium increases for an at-fault crash. This is an additional coverage you can buy to protect yourself against rates increases. Some types of accidents are worse than others—for example, a drunk driving incident is likely to trigger a nonrenewal from virtually every insurance company.

If you're reluctant to file an auto insurance claim because you fear that your premium will go up or your policy will be canceled, understand that you will be taking a risk by not reporting an incident, even if the damage seems minor. If anyone else involved in the accident sues you weeks or months later, not having reported the incident will make it harder for your insurer to gather evidence to represent you.

Worse, your failure to promptly report the accident might put your insurance coverage in jeopardy: if your insurer isn't informed in a timely manner, the company may refuse to honor your policy altogether.