Does filing an auto claim raise your premium no matter what?

by mega » Sat Jan 26, 2008 01:24 pm
Posts: 118
Joined: 23 Jan 2008

Hi all,

I have a question that has always nagged me since I have been old enough to have insurance. Does your premium get raised ( or cancelled) when you file a claim no matter the reason?

I have had insurance for many years and have yet to ever file a claim. The one time I should have I did not because it was my 17 year old who had the accident and I was afraid of what the premium might go to so and since the damage was not major to either vehicle I paid out of pocket to keep from filing a claim.

Now over the years I have heard both. Yes it does and No it doesn't. I have heard that depends on the type of accident or the extent of damage ect. I have heard many stories of insurance getting canceled after just one filing. Of course I am sure there is always more to the story than your ever told so though I would try to open a thread here where some might relate actual experiences with filing auto claims.

Thanks

Total Comments: 3

Posted: Sun Jan 27, 2008 11:02 am Post Subject:

Does your premium get raised ( or cancelled) when you file a claim no matter the reason?

No, the reason and number of claims filed have a major effect on premium....all accidents are ''coded'' with a cause of loss and then further coded (based on the cause of loss or an adjuster can manually change them in some instances/company) as ''chargeable'' or ''non-chargeable'' Typcially comprehensive losses are non-chargeable, unless there is a pattern (say) of vandalism, theft etc.

Then on further most companies have a dollar amount for chargeable think the vehicle insurance company I work for is either 500 or 750.00 meaning on a 'chargeable' accident if less than (let's say) 500 is paid it still wouldn't be chargeable.

The one time I should have I did not because it was my 17 year old who had the accident and I was afraid of what the premium might go to so and since the damage was not major to either vehicle I paid out of pocket to keep from filing a claim

Since it was your 17 year olds fault this was probably a very good idea! :wink:

Posted: Sun Jan 27, 2008 01:04 pm Post Subject: Thanks for the reply Lori

I hope to hear some other stories too just to sort of get an idea of how the average policy holder thinks. I too thought that was the best thing in my case. Of course that was about 17 years ago but I am sure that would most likely be the same course I'd take now if it was to happen that way again.

Posted: Mon Jan 28, 2008 04:24 am Post Subject:

My friend, all the stories that you have heard about the insurers are partially true. They, at times, do behave in an erratic manner. They apply their own intelligence over the incidents. There are companies, who may not increase your premium after the first claim, whereas, there are some who will. Therefore, it entirely depends on their internal policies.

However, there is very little to add to what Lori has said, but the insurance company may take away the discounts from the policy, that you were enjoying, depending upon the nature of the claim. If this being your first claim in years, you may get lucky this time. :)

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