Why would my rate increase if I submit a claim?
Why do rates increase if you're paying for insurance coverage? I've heard that your insurance rate can increase if you submit a claim.
“Car insurance rates are often based on risk.
When you pay a premium to a car insurance company, you are transferring your risk to them. This means that they can rate policies based on how many claims you have submitted or they have paid out.
While insurance isn’t solely rated on this, it can still have an impact. The type of claim can also determine whether your rate will increase. Some insurance companies exclude not at fault claims while others rate any type.
If you’re concerned about your rate increases, you can reach out to your carrier. They’ll be able to provide you with more insight on how your policy is rated.
If your rate does increase after submitting a claim, you can also opt to compare rates with other carriers using an online comparison tool like Jerry“
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Browse by topics
What others are asking
What does personal injury protection cover in Pennsylvania?
Why is personal injury protection required in Pennsylvania? I'm confused about what personal injury protection does.
Jul 06, 2021
What is a good price for car insurance in Vermont?
How can I lower my rate? I pay $200 a month for full coverage on a 2018 GMC Sierra. Am I paying too much?
Jul 06, 2021