How Do Auto Accident Claims Affect Car Insurance Rates?

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When you purchase a car, the law requires you to also purchase some form of car insurance, and the auto insurance rates you pay for your policy depend on a variety of factors. One of the biggest things insurance companies take into account when determining your car insurance rate is your driving record.

If you've demonstrated that you're a risky driver, your auto insurance premiums will likely be higher than they’d be if the insurance company deemed you less of a risk. That's why every time you file a claim, your insurance provider re-evaluates the amount you pay. The purpose isn't to punish you, but to reflect that you’re a driver who may be more likely to get involved in accidents and is thus more expensive to insure. Your insurer takes into account all driving incidents that happen in which you're at fault. As such, an at-fault claim will almost always cause your premium costs to increase. Additionally, your car insurance may increase even if an incident you’re involved in wasn’t your fault.

Learn more about several factors that influence car insurance rates after a claim — as well as some advice for how to potentially get claims back down to more affordable levels — if you’re looking to lower your rates or better understand how an accident can impact your vehicle insurance.