Suppose you are stopped at a traffic signal waiting for it to turn green and someone behind you is not paying attention and plows into the back of your car. If the damage is more than just a tiny scratch to your bumper, like most people, you will call your independent agent who will then report the accident to your insurance company.
Assuming you have an auto policy that provides collision coverage, you can file a claim with your car insurance company so you can get your car repaired as quickly as possible. Your insurance premium will not go up for a single accident that is not your fault. Your insurers in Laurel, Maryland can then turn around and seek reimbursement from the other driver’s auto insurance company. In addition, if you had a deductible and had to pay the first $500 of repair costs out of your pocket, your insurance company will probably get your money back and send you a check for those out-of-pocket expenses.
Now if you file one or two claims over a five year period, your premium will probably not go up. It is not so much the size of the claim that can cause your premium to go up, but rather the frequency of claims filed over a given period of time. The number of claims you file plays a much bigger role in the rate you will pay on your auto policy.
Deciding to file a claim for a little ding to your paint when you already filed two similar types of claims in the past year is probably not a good idea if you don’t want to risk an increase in your premium. While your coverage is there to be used, insurance companies take note of "accident prone" drivers, even if they are not at fault.
We get many questions about the effect of filing a claim will affect your auto insurance premium. As your independent agent, we have some knowledge of how filing claims with the insurance companies we represent can impact your rates. Give us a call and an independent agent will be happy to share his or her thoughts on when you should or should not file a claim.