Subject: Questions About Comprehensive Claim and Premium Increase
Hello everyone,
I’m a 25-year-old who is quite new to the world of insurance and I’m seeking some advice. Recently, I was in an incident where debris from an unsecured load on a vehicle in front of me hit my car. I filed a police report and decided to file a claim with my insurance, believing that was the right course of action.
I’ve been with my insurance company for about 3.5 years, and while they issued me a check for the repairs, they subsequently raised my rates by approximately 77%. This is my first claim, and my driving record is pretty clean with just a couple of parking tickets and maybe one seatbelt ticket.
Is this kind of premium increase common? Should I consider shopping around for other insurance providers that might offer a lower rate? Also, how long might I expect this elevated premium to last (understanding that it can vary by company, region, and incident)?
Thanks in advance for any advice or insights you can share! I’ll do my best to respond to any comments.
Hi there,
I’m sorry to hear about your experience with the claim and the significant increase in your premium. It can be really frustrating, especially when it feels like you’re being penalized for something outside of your control.
To answer your questions:
Is this normal? Unfortunately, a premium increase following a claim is quite common, even if it’s your first one. Many insurers view any type of claim as a risk factor, and they often adjust premiums accordingly. However, a 77% increase does seem quite steep, especially since this incident wasn’t due to your driving behavior.
Should you shop around? Yes, it’s definitely worth looking into other insurance companies. Rates can vary significantly from one insurer to another, and some might offer a better rate for your situation. Comparing quotes could potentially save you a lot of money.
Duration of the higher premium: Typically, the increase could last for three to five years, but it really depends on the specific policies of your insurer. After a certain period, if you maintain a clean driving record, you may see your rates decrease again.
In the meantime, consider reaching out to your current insurer to discuss your situation. Sometimes they’re willing to work with you, especially if you’ve been a loyal customer. It might also help to ask them about any discounts you could qualify for to mitigate the increase.
Good luck, and I hope you find a solution that works for you!