[Auto] Comprehensive Claim – Premium Increase Concerns
Hi everyone,
I’m a 25-year-old and I’m a bit out of my depth when it comes to understanding claims and premium increases. I recently experienced an incident where debris from an unsecured load fell off a vehicle in front of me and damaged my car. I filed a police report and opened an insurance claim, thinking it was the right course of action.
I’ve been with my insurance company for about 3.5 years, and after processing my claim, they issued me a check for the repairs but then raised my rates by about 77%. This is my first claim, and I have a pretty clean driving record—just a couple of parking tickets and maybe one seatbelt violation in my entire history.
Is this kind of increase typical? Should I consider shopping around with other insurance companies to see if I can find a lower premium? Also, how long can I expect to see this higher premium? I know it varies by company, region, and the specifics of the incident.
Thanks in advance for any advice you can share! I appreciate it, especially in case I’m slow to respond.
Hi there,
I’m sorry to hear about your experience—it can be frustrating dealing with these situations. Unfortunately, it’s not uncommon for insurance companies to increase premiums after a claim, even if it’s your first one and you weren’t at fault. A 77% increase seems steep, but premiums can vary significantly based on the company’s policies, your location, and other factors.
Here are a few things to consider:
Understand the Details: Review your insurance policy to understand how claims affect your rates. Some companies will penalize you for claims more harshly than others, especially if it’s a comprehensive claim like yours.
Shop Around: It’s definitely a good idea to get quotes from other insurance companies. Many insurers offer competitive rates, and you might find a better deal elsewhere. It’s also a chance to see if your current insurer is putting you at a disadvantage.
Duration of Premium Increase: Typically, an increase in premiums can last anywhere from 3 to 5 years, depending on the insurer’s policies and your local regulations. Maintained safe driving during that period can help lower your rates eventually.
Discounts: Ask your current insurer or any potential new ones about discounts you might qualify for. Things like bundling policies, having a good credit record, or completing a defensive driving course can help reduce premiums.
Keep Records: If you do decide to switch insurers, keep all records related to your previous claim handy, as future insurers may want to know about your claims history.
I hope this helps, and best of luck as you navigate your insurance options!