Will my insurance increase after a claim?

Overview: Insurance rates may increase after filing a claim, but it depends on several factors, such as the type of claim, fault determination (if applicable), state regulations and the insurer’s rating practices. Some comprehensive claims (such as certain glass losses) may be less likely to result in a premium surcharge (an additional charge applied to your insurance premium) compared to at-fault accidents, but outcomes vary. Additionally, filing a claim may affect discounts (such as claims-free or accident-free savings) and, in some cases, eligibility for certain programs or pricing tiers, which may influence overall costs over time. Consulting with an insurance agent can provide clarity on how a specific claim might influence your insurance rate.

What to consider before reporting an auto insurance claim

If you’re wondering whether a claim will make your car insurance more expensive, you’re not alone. Keep in mind that your policy obligations may require prompt notice of certain incidents, especially if there are injuries or damage to someone else’s property. When in doubt, your agent may help you understand next steps.

How claims might affect your car insurance rates

Claims, like a cracked windshield, may not make your premium go up in the same way an at-fault accident might. But filing a claim can still affect things like discounts, underwriting review or renewal pricing, depending on your insurer and state rules.

For example, you might find a crack in your windshield. The repair might cost $600, and your deductible (the amount you pay before insurance helps) is $500. (This is an illustrative example, glass deductibles and glass coverage rules vary by state, insurer, policy, and coverage selections like separate glass coverage or different deductibles.) You may wonder whether reporting the loss could affect your car insurance premium.

It’s a good idea to consider talking with your insurance agent about the scenario. Your agent may help explain how your policy treats glass losses, deductibles and any applicable savings.

How insurance companies may classify claims and what that can mean for you

Insurance companies handle different types of claims in different ways, and practices can vary by insurer and state.

• At-fault or “chargeable” claims — a claim may be considered chargeable when the driver is determined to be at fault and the loss meets the insurer’s and your state’s criteria (which can include factors like the type of loss and the amount paid). Chargeable claims are generally more likely to affect pricing at renewal.
• Not-at-fault claims — some losses, often including certain comprehensive claims such as theft, vandalism, weather damage, glass damage or animal impact, may be treated as non-chargeable depending on your insurer and state rules. Even when a loss is not a direct or explicit surcharge, it may still affect savings, eligibility or underwriting decisions.

Some states restrict how insurers may apply surcharges for certain not-at-fault losses or catastrophic events, but rules vary. It is important to carefully review your insurance policy to understand how situations might be handled. Your insurance agent may assist by helping you review your policy details and coverage options.

Potential costs to think about when a claim is filed

Even if a claim doesn’t lead to a direct surcharge, it could affect savings you currently receive, such as a claims-free discount. Some policies also offer accident-free savings, and the rules for keeping or losing these savings vary by insurer, state and policy.

For example, if you have a claims-free savings worth about $150 per year and you report a loss where your deductible is $500, you may still pay that deductible out of pocket while insurance covers the remainder. If the claim changes your savings eligibility, your premium could be impacted at renewal.

Because insurance pricing is complex, it’s hard to say exactly how much your premium might change or for how long, based on a single claim. Premiums can change for reasons unrelated to your claim (for example, inflation in repair costs, medical costs or broader rate changes in your area).

Common types of auto insurance claims and their possible impact on your rates

Here are some common types of claims and how they might affect your insurance:

Decision guide: Cost considerations you may review with your agent

If you’re evaluating a loss, it can help to do a quick cost check and review your policy details. These examples are illustrative only and are not a recommendation to report or not report a claim.

Reminder: Incidents involving injuries or damage to someone else’s property are typically subject to prompt reporting requirements. Because claim-reporting requirements can vary by insurer and policy, it is important to refer to the specific reporting instructions provided in your insurance policy.

Common questions about auto insurance claims and rates

• Does hitting a deer count as an at-fault accident? Usually, hitting an animal is handled as a comprehensive claim rather than an at-fault collision. However, if you swerve and hit another vehicle or object instead, that is typically handled under collision and fault may be considered. Check your policy and state rules to be sure.
• Can using roadside assistance affect my rates? Sometimes. Some insurers may treat roadside assistance use as claims activity or service history, which could affect underwriting decisions or eligibility in certain situations. Whether it affects premium varies by insurer and state, so it’s best to ask your agent how your policy handles roadside assistance. In some cases, roadside assistance may be treated as a service benefit rather than a traditional claim, but it may still be tracked as activity.

Important things to know before you decide

There’s no one-size-fits-all answer to whether your insurance will go up after a claim. It depends on the type of loss, fault determination, your state’s rules, your insurer’s rating plans and your current savings.

Talking with your insurance agent can help you understand the possible impacts in your situation. If you’re unsure whether an incident should be reported, your agent may help you understand your policy obligations and what information is required.

Some claims may be less likely to cause a major premium change than chargeable at-fault accidents, but they can affect savings, underwriting or renewal pricing depending on your policy and state.

Do you still have questions? Reach out to your local State Farm agent, they’re there to help.

You can get an auto insurance quote now, or give us a few details and a State Farm® agent will reach out to you.