Does Filing an Auto Insurance Claim Mean Higher Premiums?

Hit a bump in the road with your car? While accidents happen, navigating the aftermath, especially when insurance is involved, can feel like a winding road. One question that often pops up: "Will my auto insurance premiums increase after filing a claim?"

Driving Record: The Foundation of Your Rates
Your driving record serves as the foundation for your insurance premium. Think of it as a risk assessment – the safer your driving history, the more stable your rates. Claims and moving violations, unfortunately, paint a different picture, potentially prompting your insurer to re-evaluate your risk profile.

Claims and Premium Adjustments: What to Expect
When you file a claim that's primarily your fault and exceeds a certain amount, your insurer might re-evaluate your rates. Similar to a GPS recalculating after a wrong turn, they'll adjust your premium based on the updated risk assessment. But remember, these adjustments usually stay on your record for around three years.

Beyond Claims: What Raises Red Flags
While claims deserve attention, a single incident often isn't the deal-breaker. Insurance companies consider the overall picture. A history of reckless driving or frequent accidents could send up red flags, potentially leading to policy non-renewal in extreme cases. Drunk driving offenses are particularly frowned upon and can result in swift cancellation from most insurers.

Should You Report an Accident? The Importance of Honesty
Holding back on reporting an accident, even a minor one, can be tempting if you fear higher premiums. But remember, not reporting can lead to bigger problems down the road. If someone involved decides to sue you later, your lack of reporting can make it difficult for your insurer to defend you. Worse, it could even jeopardize your coverage altogether.

The Bottom Line: Knowledge is Power
While bumps in the road and the ensuing claims can sometimes lead to bumps in your premium, understanding the process empowers you to navigate the situation confidently. Remember, open communication with your insurance company is key. At UHCU Insurance Services, we believe in transparent and supportive relationships. If you have questions or concerns about your auto insurance, don't hesitate to reach out – we're here to help you smooth out the ride.

Ready to find the right policy for you and your car? Give UHCU Insurance Services a call at 512.435.4555 or get a quote online.

UHCU Insurance Services, LLC is a Credit Union Service Organization. Business conducted with UHCU Insurance Services, LLC is separate and distinct from any business conducted with United Heritage Credit Union, its parent Credit Union. Insurance products offered by UHCU Insurance Services, LLC are not (i) deposits of United Heritage Credit Union, its parent Credit Union or its partner Alloy Insurance Partners, therefore are not protected by the NCUA and are not exclusive to Credit Union members and (ii) an obligation of or guaranteed by UHCU Insurance Services, LLC, its parent Credit Union or its partner and may be subject to risk. UHCU Insurance Services offers coverage for Texas residents only. Any insurance required as a condition of an extension of credit by United Heritage Credit Union need not be purchased from UHCU Insurance Services, LLC and may be purchased from an agent or insurance company of the member’s choice.