Will my car insurance go up after a claim?

Why a claim can raise your car insurance rates

Insurers set prices from the losses they expect to pay. According to the NAIC, claim frequency is the single biggest influence on rating, and drivers with past accidents or violations are treated as higher risk. A claim tells the insurer something about your future risk, so it can show up in your price at renewal.

A claim can affect your premium in several ways:

• A surcharge. Many insurers add a percentage to your premium for a set period after an at-fault accident. The size and length come from the insurer's rating plan, which is filed with or approved by your state.
• A lost discount. The Texas Department of Insurance notes that you could lose a claim-free discount after a claim.
• A new tier. Some insurers move drivers with recent claims into a higher-priced rating tier.
• Nonrenewal. Several claims in a short time can lead an insurer to decline to renew, within the limits of state law.

Insurers also share claims data. The Texas Department of Insurance explains that most companies check the Comprehensive Loss Underwriting Exchange (CLUE) to see your claims history, including claims you made with other insurers, and that you can request a free copy of your report once a year. See how claims history and your driving record feed into your price, or try our premium factors tool.

At-fault vs not-at-fault claims

Fault is the biggest single driver of whether a claim raises your rates.

At-fault accidents are the most likely to trigger a surcharge. "At fault" is defined by each insurer's rating rules and state law. Massachusetts, for example, treats an accident as surchargeable only when the driver was more than 50% at fault and the insurer paid more than $1,000.

Not-at-fault accidents usually carry less weight, but they are not always ignored. The NAIC notes that a second not-at-fault accident within a policy period may still allow an insurer to raise your premium. Some states go further and bar the increase:

• California. Insurance Code section 491 says a rating plan may not raise your premium because of an accident in which you were not at fault, as determined by the accident report or the insurer. If the insurer disagrees with a report that found you not at fault, it can only reach a different conclusion after investigating.
• Florida. An insurer may not add a premium charge for liability, PIP, medical payments or collision coverage just because you were in an accident, unless its file supports a good-faith finding that you were substantially at fault.

Florida's not-at-fault situations

Florida insurers that surcharge must tell you that you can get the surcharge removed, or keep your policy, if you show that the driver was:

On request, Florida insurers and agents must also give you the proof of fault behind a surcharge.

Comprehensive, glass and weather claims

Comprehensive claims cover losses you do not cause by driving, such as theft, hail, fire, flooding, hitting an animal and broken glass. They usually count for less than at-fault crashes, but frequent claims can still matter.

• In Massachusetts, comprehensive claims add surcharge points only after 4 or more claims totaling $2,000 or more, and acts of God are excluded.
• In Texas, an insurer cannot refuse to renew your policy because of weather damage, hitting an animal or an accident that cannot reasonably be blamed on you, unless you have more than one of these claims in 12 months. After 3 flying gravel or object claims in 36 months, a Texas insurer can raise your deductible.

For more on glass claims, see our windshield and glass guide.

State rules that limit surcharges

These are examples, not a full list. Many states have their own rules on surcharges, notices and appeals, so check with your state insurance department.

How long does a claim affect your car insurance?

There is no national rule. Each insurer's rating plan sets how long a surcharge lasts, within any limits your state sets. A few state examples show the range:

• Massachusetts uses a 6-year experience period. Points fade as incidents age, and incidents in the oldest year carry no points but still stop you from earning an incident-free year.
• California looks back 3 years for principally at-fault injury accidents when deciding whether you qualify as a Good Driver.
• Florida measures accident-based nonrenewal over a 3-year period.

Claims also stay in industry databases such as CLUE for years, so a new insurer may see a claim you filed with a previous company. Ask your insurer or agent how long a specific claim will affect your price, and check your CLUE report for errors.

Should you pay out of pocket instead of filing a claim?

Sometimes paying for small damage yourself costs less than the extra premium a claim could bring. The answer depends on the repair cost, your deductible, your insurer's surcharge rules and whether anyone else could claim against you.

Example: a parking lot scrape costs $1,200 to fix and your collision deductible is $1,000. A claim would pay only $200. If an at-fault claim raised your premium by even a modest amount for several years, paying yourself would likely cost less.

Do not skip reporting when:

• Someone was hurt, or might say they were
• Another driver or property owner could claim against you
• Your state requires a police or DMV report
• The damage might be bigger than it looks

The Texas Department of Insurance suggests checking your deductible first, since a claim close to the deductible may not be worth filing. Our deductible chooser helps you see how your deductible changes the math.

How to keep rates down after a claim

• Check the fault decision. If you were not at fault, send the police report and other proof and ask for any surcharge to be removed.
• Shop around at renewal. Insurers weigh claims differently. See shopping at renewal.
• Review your deductible. A higher deductible lowers premiums and makes small claims less tempting. See choosing a deductible.
• Ask about discounts. A defensive driving course or other discounts can offset part of a surcharge.
• Ask about accident forgiveness. Some insurers offer it, often for drivers with a clean history, but terms vary.
• Review your coverage. Our coverage review guide helps you check that you are not paying for coverage you no longer need.