Premium Increases after a Claim

Insurance policies vary from company to company but in general most insurers increase premiums according to a specified percentage for each chargeable claim.

A chargeable claim is one the insurer considers to be your fault. The percentage and maximum will depend upon the company. Generally, these increases will stick with you after the claim. If you end up with too many chargeable claims, your insurance company could decide not to renew your policy.

Insurers have different policies as to what constitutes an unacceptable driving record. In addition, more severe violations like a drunken driving conviction will virtually guarantee a non-renewal or at the very least, a large premium increase.

Keep in mind also that if you fail to report an accident to your insurer, you could be taking a chance even if it appears the damage is minor. It's important to remember that the other driver could come back with a lawsuit and if you've not kept your insurance company informed, they could choose not to honor the policy.

Even if they do, you've put yourself in a hole by not giving them adequate time to represent you.