How Previous Claims Affect Your Car Insurance Rates and Needs

In many aspects of life, it’s important to learn from your mistakes, and in terms of car insurance, learning from previous claims is no different. Insurance claims come in all varieties, from damages you don’t have control over to those you cause and/or could have prevented. You can’t control a rock flying up from a passing vehicle and hitting your windshield for example, but you can choose where to park your car or whether to get behind the wheel after consuming alcoholic beverages. Just one at-fault accident should be enough to teach you not to make the mistake again and to focus on safety behind the wheel at all times.

When it comes to previous claims affecting your insurance, there are two main factors to consider. The first is how previous claims affect your car insurance premium, and the second is having an uncovered claim because you hadn’t purchased the endorsement that would have covered the damage.

Will a Small Claim Impact My Car Insurance Premium?

You may not realize that filing frequent minor physical damage claims can cause your car premium to increase. You may think to yourself, “Well, they’re minor. It doesn’t cost the insurance company much after my deductible.” For instance, suppose you back into a tree in your driveway, causing minor damage to your car but no injuries to those involved. Why not let your insurance company pay for the repair?

It’s important to understand that every claim you submit is recorded in your loss history and every insurance company examines your loss history and the frequency and severity of your claims when determining your premium. The cost to repair minor damage to your vehicle may not be worth having the claim on your loss history. If the damage is minor, you should think twice before submitting a claim to your insurance company, especially if the cost of repairs will not be much higher than your deductible.

How Does One At-Fault Claim Affect Auto Insurance Rates?

If you are deemed negligent and at fault for an accident that damaged someone’s property or injured someone, your auto insurance premium will increase. In fact, you might receive a surcharge as high as 20 to 40 percent on your car insurance renewal. If this is your first accident, your insurance company may make an exception, as some companies offer “accident forgiveness” for your first collision.

How a DUI or DWI Conviction May Affect Your Car Insurance

Not surprisingly, a DUI (driving under the influence) or DWI (driving while intoxicated) will significantly affect your car insurance premium and may even result in your coverage being cancelled. As far as an insurance company is concerned, these violations may never be removed from your driving record, and your state Bureau of Motor Vehicles may require special filings for you to retain a valid driver’s license.

Multiple Previous Claims Can Make You Uninsurable

If you’ve filed numerous claims, had at-fault accidents that injured people, and have a DUI or DWI conviction, you are not a good risk in the eyes of an insurance company. As a result, the accumulation of claims in your loss history may eventually render you uninsurable.

What You Can Learn from Uncovered Claims

You’ve likely experienced a rock hitting your windshield, but did you have the coverage to pay for the windshield’s replacement? This common scenario represents a lesson you may learn from a previous uncovered claim, as glass coverage may not be included under your auto insurance policy. However, you can purchase windshield damage coverage for your car as part of your physical damage coverage. In fact, some states actually mandate full glass coverage. There are numerous endorsements that can be added to your car insurance policy to protect you from uncovered losses, and your independent insurance agent can help you better understand which endorsements would best meet your needs.

Your Independent Insurance Agent Can Help

As your independent insurance agent, we are here to assist you when you have a claim. At Hunkins & Eaton, we are here to help you make the best coverage decisions and get any claims settled as quickly as possible for you. For additional information, or to get a free quote for dependable car insurance coverage in Littleton, N.H. or the surrounding communities, please call us at 603-444-3975 or visit www.hunkins-eaton.com.

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