Insurance rate hike is a big concern for people looking to file an auto insurance claim. Many drivers are so worried about their rates that they don’t even file an insurance claim with their insurance companies. As we’ll see below, there are a number of factors that insurance companies take into consideration when deciding on a rate increase. Before you decide not file a claim, continue reading to learn more about these factors and how they affect your insurance rates following a claim.
Cost of Claim
The biggest factor that affects insurance rate hikes is the cost of your claim. A small damage on the windshield of your car is treated differently as opposed to a major at-fault accident. The most costly the claim, the higher the chance that your insurance rates may go up. You should also think about insurance deductibles and you can read all about it in our earlier article by clicking this link: Understanding Your Auto Insurance Coverage and Deductibles .
When you purchased the insurance policy, your insurance agent hopefully went into the details of your coverage. Auto insurance coverage packages vary a lot and the details may be worth revisiting at the time you’re thinking of filing a claim. Call your agent and have them go through your insurance policy in light of the claim you’re about to submit.
Your Driving History
Driving history is another major factor that is used to weigh in on your insurance rate hike. You may have seen from the recent auto insurance companies’ ads that they’re keen to reward safe drivers. Insurance companies want to incentivize safe driving as this keeps the costs down for everyone. Your level of risk as a driver (shown by your driving history) tells a lot and is one of the main factors insurance companies use in deciding to raise your insurance rate. When you present a claim, your driving history will play a factor in determining if your auto insurance rate will go up.
At-Fault Or Not
Another factor that is considered by insurance companies is the party responsible for the causing the accident. Being at fault makes you more likely to have a rate hike on your insurance. Oklahoma is an at-fault state, which means that if it’s determined that you are at fault in an accident you’ll have financial responsibility to take the burden in such case. Some states have a no-fault policy when it comes to accidents and in such cases your insurance company may still have to pay a portion of the total cost of the overall claim.
Should You File That Claim?
While there are no hard and fast rules about which claims may hike your insurance policy, it’s important to take the factors above into consideration. What one company will forgive, another may not easily overlook. At the end of day, recognize that you don’t have to stick with one insurance company. If you feel like you’re not getting the best value for your hard-earned money, you may as well shop around and see what options are out there. All in all, we should all aspire to be safe drivers, as that is the most sure way to get the best rates and keep them low across insurance companies.
Navigating this maze of insurance claims is a very difficult one if you don’t understand what you need to ask. Here at Davis Paint & Collision Auto Center we work with your insurance and help you with paperwork. It’s peace of mind for you and allows us to fix your car in the best way possible. Don’t go through it alone. Call one of our locations today: Oklahoma City location (405) 733-9797 or Midwest City location (405) 732-0762.