Post on 29-Jul-2015
The Real Cost of an Auto
Insurance Claim
An auto insurance claim will cost you your premium, but how much will you
be paying in higher rates in the future?
We have the answers...
Premium increases are based off of the assumption that a driver who is in an
accident is more likely to be in a second accident.
If someone is forced to file a second claim, their insurance policy’s premium will skyrocket a national average of 93%, nearly doubling the cost of their
insurance premium.
Top three states with the highest average increase in premiums after a single $2,000 claim.
1. California: 86% average increase2. Massachusetts: 83% average increase3. New Jersey: 69% average increase
Top three states with the lowest average increase in premiums after a single $2,000 claim.
1. Maryland: 22% average increase2. Michigan: 25% average increase3. Montana: 27% average increase
Even in the states where a claim might not make your rates skyrocket, the added costs can still add up to hundreds of dollars over
the course of a few years.
Keep in mind…
These rate increases are often expected to last between three and five years, giving your plan plenty of
time to cost you hundreds of additional dollars before your
premiums go back down, even if you don’t file a second claim during that
time.
How can I avoid an increase in my premium?
Avoiding personal injury is one of the most important things you can do on the road
Being a responsible driver is good for everyone around you
If your rates increase, what can you do?
Well, the first course of action would be to shop around and compare competing auto insurance rates.
Every policy is different,, so why not shop around for something more fitting your lifestyle, budget, and needs?
Contact us today and our experts would be more than happy to answer any of your questions and help you find a car insurance plan that’s right for you.
Do you think auto insurance companies should change the way they handle clients who’ve been in an accident?
Let us know in the comments section below!