Keep in mind that your insurance premiums are based on several factors, such as where you live, your insurance history, if you have had any claims, and demographic information. Home & auto rates also have a number of specific factors based on things like your driving record and vehicle for car insurance, and your home’s construction, recent updates, etc. for home insurance. If you have a history of multiple claims or if you’re considered high-risk you may see a more significant increase in your insurance premiums.
It’s important to talk to your insurance company or broker to understand how a claim could affect your rates and to explore your options for minimizing the impact on your premiums. And remember, accidents happen, and that’s what insurance is for – to help protect you in those unexpected moments. If you are deemed “at-fault” for a claim, your insurance premiums will be effected; however, “not-at-fault” claims such as a broken windshield on your auto policy do not affect your premium.
Not every accident results in an increase in your premium – but every claim reported can help save you a headache in the long run.
See our blog on What Happens when you Report a Claim for more information on the claims process.