Reader’s Question:

Is it true that your insurance payment automatically increase if you make a claim? I live in Tampa FL.

Kelly

Tampa, FL

Thanks for asking. No Kelly, your insurance payment does not automatically or immediately increase if you make a claim. Your driving record and claims history will be taken into account when you start a policy or it is time for your policy to be renewed and depending upon your insurance company’s guidelines and rating system your rates may be affected by a claim.
State insurance laws can differ regarding this issue but putting in a claim with your own insurance company can allow insurance companies to increase your rates. Most car insurance carriers use a threshold to determine if automobile activity claims should cause a surcharge or remove a discount. I see that you are located in Tampa, Florida and the Florida Department of Financial Services discusses rating systems of insurers by stating that insurance companies use a variety of factors to determine a policyholder’s likelihood of experiencing an accident or loss. The cost of car insurance for different drivers varies, as the level of risk for the insurance company varies.

Insurance companies consider drivers as higher risks when they have had at fault accident or received convictions for driving violations. Companies may charge such drivers higher rates for car insurance than those with driving records free of accidents and violations. Each company has underwriting guidelines to determine what kind and how many car accidents or violations during a specified period constitute a high-risk driver. So it could be that one claim will not cause your rates to go up but if you have had a lot of claims made in total against your insurance policy then your claims history could cause an overall rating increase.

Tags: auto insurance claims, automobile