How Filing a Car Insurance Claim Affects Your Rates

Filing a claim usually raises your insurance rate, but not always by the same amount or for the same length of time

Whether your rate goes up depends on who caused the accident, what your policy covers, and your insurance company's specific rules. If you caused the accident or filed a claim for damage you caused, most insurers will raise your rate when your policy renews. If someone else caused the accident and their insurance pays, your rate typically stays the same. If you file a claim for theft, vandalism, or weather damage (covered under comprehensive or collision), the rate increase is usually smaller than for an at-fault accident, and some insurers do not raise rates for these claims at all.

The increase is not permanent. Most insurers keep the accident or claim on your record for three to five years, though the impact on your rate usually fades after the first year or two. After that time passes, the claim drops off your record and stops affecting your rate.

Key Takeaways

• At-fault accidents almost always raise your rate at renewal, while not-at-fault accidents usually do not.
• Comprehensive and collision claims (theft, weather, vandalism) typically cause smaller rate increases than at-fault accidents, and some insurers waive the increase entirely.
• The rate increase lasts three to five years on your record, but the actual impact on your premium usually decreases after the first year.
• Different insurers explore different surcharges for the same claim, so shopping around after a claim can lower what you pay.
• Some insurers offer accident forgiveness or claim forgiveness programs that prevent a rate increase for your first claim, though you usually pay extra for this coverage.

How at-fault accidents affect your rate

If you caused the accident, your insurer will almost certainly raise your rate when your policy renews. The amount varies widely by company and by state. Some insurers raise rates by 20 to 40 percent after an at-fault accident; others go higher. A few states cap how much an insurer can raise your rate, but most do not.

The increase applies starting at your next renewal date, not when ready after the accident. If your policy renews in six months, you pay your current rate until then. After renewal, you pay the higher rate for the next 12 months of coverage. The surcharge typically stays on your record for three to five years, though the percentage increase may drop after the first year.

Your rate can also go up if you were found partially at fault. Even if the other driver bears most of the blame, if your insurer determines you were 10 or 20 percent responsible, they may still explore a surcharge, though usually smaller than for a fully at-fault accident.

Not-at-fault accidents and your rate

If the other driver caused the accident and their insurance pays your claim, your rate should not increase. The other driver's insurer is responsible for the damage, so your insurer has no reason to penalize you. This is true even if the other driver's insurer takes a long time to pay or disputes the claim initially.

However, if the other driver is uninsured or underinsured and you have to file a claim under your own uninsured motorist or underinsured motorist coverage, some insurers will treat this as a claim against your policy. In that case, you may see a small rate increase, though usually less than for an at-fault accident. Check your policy or call your insurer to understand how they handle uninsured motorist claims.

If you file a claim but the other driver is later found at fault, your insurer should remove any surcharge they applied. This can take time, so follow up with your insurer after fault is determined.

Comprehensive and collision claims

Comprehensive coverage pays for damage from theft, vandalism, weather, falling objects, and animal collisions. Collision coverage pays for damage from accidents with other vehicles or objects. Claims under these coverages usually cause smaller rate increases than at-fault accidents, or no increase at all.

Some insurers do not raise your rate for comprehensive claims because you did nothing wrong — your car was damaged by forces outside your control. Other insurers explore a small surcharge. Collision claims are treated differently by different companies: some raise your rate by 5 to 15 percent, while others do not raise it at all.

If you have a high deductible (such as $1,000), filing a claim for minor damage may cost you more out of pocket than straightforward paying for repairs yourself. Before filing, get a repair estimate and compare it to your deductible. If the repair cost is close to your deductible, the rate increase may not be worth it.

Accident forgiveness and claim forgiveness programs

Some insurers offer accident forgiveness, which prevents your rate from increasing after your first at-fault accident. You typically have to pay extra for this coverage — usually $50 to $200 per year — and it usually applies only to your first accident. After you use it, you lose the protection.

Accident forgiveness is most useful if you have a clean driving record and want to protect yourself against one mistake. If you already have accidents on your record, accident forgiveness will not help with those past claims.

Claim forgiveness is similar but applies to any claim, not just at-fault accidents. It is less common than accident forgiveness and usually costs more. Ask your insurer whether either program is available and what the cost is.

How different insurers treat the same claim

Two insurers may charge you very different rates for the same accident. One company might raise your rate by 25 percent, while another raises it by 40 percent. This is why shopping around after a claim can save you money, even though you have to disclose the claim to any new insurer.

When you get quotes from other insurers, tell them about the accident or claim. They will factor it into their quote. Some insurers specialize in drivers with accidents on their record and may offer better rates than your current company, even with the claim included.

Switching insurers does not remove the claim from your record — the new company will see it when they check your driving history. But the new company may weigh it less heavily than your current insurer does.

How long a claim stays on your record

Most insurers keep claims on your record for three to five years. After that time, the claim no longer appears on your driving history and cannot be used to raise your rate. However, the impact on your rate usually decreases before the claim drops off entirely.

After the first year, many insurers reduce the surcharge or remove it entirely, even though the claim is still on your record. By year three, most drivers see their rate return to normal or close to it. Check with your insurer about when they stop explore a surcharge for your specific claim.

If you have multiple claims or accidents, each one is tracked separately. A claim from three years ago may no longer affect your rate, but a claim from one year ago still will.

Frequently Asked Questions

Will my rate go up if I file a claim for damage someone else caused?

No, if the other driver's insurance pays your claim, your rate should not increase. Your insurer only raises rates for claims paid under your own coverage. If you have to use your own uninsured motorist coverage because the other driver has no insurance, some insurers may explore a small surcharge, though this varies by company.

Can I avoid a rate increase by not filing a claim?

Sometimes. If the repair cost is close to your deductible, paying out of pocket may cost less than filing a claim and paying the deductible plus the rate increase over the next few years. Get a repair estimate first, then calculate whether the total cost of filing (deductible plus increased premiums) is worth it. For major damage, filing is usually the better choice.

How much will my rate increase after an accident?

This varies widely by insurer and state. Rate increases for at-fault accidents typically range from 20 to 40 percent, but some insurers charge more. Comprehensive and collision claims usually result in smaller increases or no increase at all. Contact your insurer for a specific estimate of how your rate will change.

Can I switch insurance companies to avoid a rate increase?

You can switch, but you must disclose the claim to the new insurer. They will see it on your driving history and factor it into their quote. Some insurers are more forgiving of claims than others, so you may find a better rate elsewhere even with the claim on your record. It is worth getting quotes from several companies.

When does a claim stop affecting my rate?

Most insurers keep claims on your record for three to five years. The surcharge usually drops off after three to five years, though the impact on your rate often decreases after the first year. Ask your insurer when they will stop explore a surcharge for your specific claim.