Will My Insurance go up if I File a Claim? Have you got car insurance or any other type of insurance and you are looking to file a claim? But have you ever been concerned that filing a claim will result in your insurance company raising your premium rates? You are not alone. There are so many other people that are asking this question. In this article, I’m going to be answering the question of whether my car insurance will go up if I file a claim.
After purchasing your insurance, it is your right to file a claim because it is the only way to enjoy the benefits of your insurance policy. If you do not find a clear yes, you can simply enjoy all the benefits of not filing a claim, but there might come a time when you will really need to file one. People mostly ask this question if they have filed a claim in the past, so they are scared to fight another. But in this article, I will answer that question for you.
Will My Insurance go up if I file a Claim?
Going straight to the answer without beating around the bush, the answer is very short and it is yes, your insurance rate will go up after filing a claim. You should also keep in mind that whether you file a claim or not, your insurance rate is bound to go up. But it is definitely going to go up quickly if you keep on filing claims, especially if you have had more than one claim within a five-year period.
Will my car insurance increase after an accident?
Getting into an accident will not be what will increase your premium; it is when you file a claim to fix the damage that is what will increase your insurance premium rate. Again, the answer is a very big yes. It is definitely going to get your insurance rate increased irrespective of who caused the accident. That being said, a non-fault accident wouldn’t affect your premium as much as an at-fault accident.
What is a Non-fault Car Insurance Claim?
In a car accident case, there are two types of claims that you can make. One of them is a non-fault claim, which means you are not the cause of the accident. If you are not the cause of the accident, that means the other driver is the one at fault, which means you are not at fault as it is called a non-fault claim.
If you file a non-fault claim, it is the party that is involved that is responsible for making payments. Your insurance company will recoup the cost of repairs from the other party’s insurance company if they have one. If that is done, your claim will be regarded as non-fault and might not have a significant effect on your insurance.
What is an at-fault Insurance Claim?
An at-fault insurance claim is when you are the driver that is at fault, thereby causing the accident, and you are filing a claim to fix the damages with your insurance company. The claim will be recorded as an at-fault claim in your insurance history by your insurance company. The only problem is that it might not stop there. It might in turn cause your insurance company to increase your insurance rates.
Am I still covered if I hit an unsecured driver?
Like it or not, the majority of the drivers you are going to be meeting on the road are unsecured, which means they do not have any insurance policy. This means that if you are involved in an accident with an unsecured driver, it is still your insurance company that will pay for the damages. This will definitely lead to your insurance rates going up.
Will my no-claim discount be affected after making a claim?
A no-claim discount is simply a no-claim discount, which means that you have a discount in your insurance rate if you do not file a claim. However, if you have had an accident, your premium rate will go up, but at times, your no-claim discount is likely to remain the same. No claim discount is applied after your premium has been calculated, which results in an overall increase.
How much does your Insurance go up after your first claim?
Now that we have established the fact that your insurance premium rates are likely to go up whether you have had an accident or not, let’s look at how much it might go up by. In a study carried out in the UK in 2018, at-fault drivers can expect an increase of £136 after an accident, while non-fault drivers should expect £102. This is the average increase that is expected anytime you have an accident, whether you are at fault or not.
Frequently Asked Questions
How much does insurance go up after one claim?
Your insurance rate is definitely going to go up after filing a claim, irrespective of whether you are at fault or not. But the amount of increase varies from one insurance company to another, but the overall estimate or average is about 20% to 50%.
Should I claim on my car insurance or not?
It is totally dependent on the amount or extent of damage that occurred as a result of the accident. If the damage is very small, you should definitely not claim insurance for it.
How will a claim affect my insurance?
Making a claim that your insurance company is definitely going to pay settlement spending money would indirectly lead to your insurance going up. So, if you can repair the damage yourself, you should not contest the claim and instead repair it.
How long do you have to tell insurance about an accident?
The time frame in which you must let your insurance company know if you have been involved in an accident varies from one company to another. In some companies, you have at least 24 hours before letting them know that you have been involved in an accident.