What happens when a claim reaches the end of its reporting period?
About five years ago, I had an incident where I hit a deer, which nearly totaled my three-month-old Camaro. Naturally, I filed a claim, and I always believed it was a comprehensive claim that wouldn’t impact my rates. However, every time I get a quote for a new policy, they’re pulling up that incident and using it to increase my premiums. My policy will renew in five years since the accident, so I’m curious if my rates will go down once that claim ages out. I’ve never really heard of insurance companies automatically lowering rates at renewal, but since that claim is currently factored into my pricing, shouldn’t it decrease when it’s no longer on my record?
When a claim “ages out,” it typically means that it no longer appears on your claims history after a certain period, which can vary by insurance company and state regulations. Most insurance policies consider accidents for 3 to 5 years, depending on the insurer.
In your case, since your accident happened nearly five years ago, it’s likely it will no longer be factored into your quotes once you renew your policy. However, it’s essential to note that while the claim may age out, some insurers might still consider it in how they calculate your premium based on your overall driving record and risk profile.
When your accident does age out, you can potentially see a reduction in your premiums. However, it’s a good idea to proactively discuss this with your insurance agent. They can explain how the aging of the claim will specifically affect your rates and might also provide guidance on getting the best rate when shopping for new policies.
Remember, maintaining a clean driving record moving forward and regularly shopping around for quotes can also help ensure you get the best possible rate when your policy renews!