Key Insights at a Glance
- Insurance claims flag you as a higher risk, prompting insurers to jack up your rates for both drivers and homeowners alike.
- Crunch the numbers on repair expenses versus your deductible before deciding to put in a claim.
- Multiple claims can backfire—leading to premium hikes and even potential policy termination.
Whether it’s a fender bender or a kitchen blaze, insurance acts as your financial safety net against covered disasters. Yet, this safety often arrives with a catch. Once your claim for auto, home, or renters insurance gets the green light, insurers might peg you or your property as a riskier bet. The fallout? When renewal time rolls around, you could be staring down noticeably steeper premiums. Grasping why your rates shift empowers you to choose wisely when losses hit.
Breaking Down What an Insurance Claim Means
At its core, an insurance claim is your official shout-out to your insurer for monetary relief after unexpected harm or damage. For a claim to sail through, the incident must fall under your policy’s covered hazards. Anything outside the coverage ring is swiftly declined, leaving no payout behind.
Filing claims works pretty similarly across auto, home, and renters policies, typically slotting into either first-party or third-party types. In the first-party camp, you’re claiming for your own loss. Third-party claims surface when others seek compensation from your policy because your negligence harmed them. Though auto, home, and renters insurance cover different grounds, all handle both these claim flavors.
Insurance Claims and Their Impact on Your Premiums
Your home or auto insurance premium is basically a price tag on risk—more precisely, the chance you’ll make a claim that costs your insurer money. Before any claims fly, factors like your age, where you live, and often your credit score weigh into this risk calculation. But once you ring the alarm and file a claim, that risk meter ticks up, often dragging your premiums higher. Frequent claimants, no matter the payout size, are flirting with the nightmare of policy cancellation.
Auto Insurance Claims: Not All Accidents Are Created Equal
Insurance companies don’t treat all car claims alike. If you’re fingered as the accident culprit, expect a bump—a surcharge slapped onto your policy, commonly hiking your rates sharply over roughly three years. Besides, losing those cherished accident-free or safe-driver discounts can sting your wallet further.
| Full Coverage Car Insurance | $2,685 | $3,884 | 45% |
| Minimum Coverage Car Insurance | $800 | $1,174 | 47% |
*Data based on Bankrate’s examination of Quadrant Information Services’ April 2025 figures
Homeowners Insurance Claims: Two Sides of the Same Policy
Homeowners insurance splits into two buckets: Section I covers damage to your property, while Section II handles liability claims (damage affecting others). According to the latest 2022 Triple-I data, nearly all (97.8%) home claims relate to property damage, with a mere 2.1% tying to liability.
Where your home sits and its vulnerability to natural disasters weigh heavily on your rate. Past claims also factor in as insurers gauge your propensity to file again. A claim’s payout size and the odds of repeat incidents influence your premiums. For example, a costly water damage claim caused by a kid’s flushed toy might not foreshadow ongoing risk, whereas structural issues might.
| Fire | $80,000 | $2,397 | 6% |
| Liability | $31,000 | $2,399 | 6% |
| Theft | $5,000 | $2,414 | 6% |
| Wind | $12,000 | $2,392 | 6% |
*Insights drawn from Bankrate’s review of Quadrant Information Services data, April 2025
Renters Insurance: Small Policy, Noticeable Effects
Renters insurance, covering only your belongings and liability, usually costs less than homeowners insurance. Yet, this also means any claim-triggered rate hike can hit harder proportionally.
Just like home policies, filing a claim bumps your rates due to increased perceived risk. Plus, renters lack control over property maintenance, limiting their ability to prevent future mishaps. Triple-I notes the average renter’s insurance runs about $170 annually or $14 monthly.
Did you know? Certain dog breeds statistically tend to cause more incidents—breeds like pit bulls, German shepherds, Great Danes, and Dobermanns top the list. If you’ve got a dog bite claim in your history, brace for a premium surge. Some insurers might even decline coverage or cap your liability, leaving you with heftier-than-usual bills.
High-Risk Claims: What Puts You on This List?
Though “high-risk claim” isn’t industry jargon, certain policyholders get flagged as high-risk due to circumstances that push their premiums skyward.
For auto, home, and renters insurance, carriers keep a close eye on loss-prone spots—places battered by frequent costly events such as wildfires, vandalism, or hurricanes. Other reasons a home might be pegged as high-risk include:
- Age and wear making it more vulnerable to damage
- Vacant or empty properties
- Presence of aggressive dog breeds
- Attractive nuisances (think trampolines or swimming pools)
- Construction with outdated or flammable materials
- Rebuilding costs too steep for the insurer’s comfort zone
To Claim or Not to Claim: Should You Hold Back to Save Your Rates?
It boils down to weighing repair costs against your deductible. If the fix doesn’t drastically surpass your deductible, paying out-of-pocket might save you from premium hikes down the road.
Yet, accidents involving injury or property damage to others must be reported immediately, regardless of whether the other party prefers a quiet settlement. Skipping the report or fleeing the scene can land you in legal hot water—and bump up your premiums.
No matter your choice to claim, swapping details with the other driver and notifying your insurer proves essential if they file against you. Bolster your defense with witness statements and police reports to safeguard yourself from unwarranted rate increases.
Can You Reign in Costs After a Claim?
Claims often send your premiums north for three to five years, but savvy moves can help trim expenses during this probationary phase:
- Boost your deductible: The more you pay upfront before insurance chips in, the more you can often shave off your premium.
- Upgrade security: Installing alarm systems at home or parking your car in a locked garage signals lower risk, possibly earning you discounts.
- Practice safe driving: Keeping clean records and steering clear of tickets for several years helps bring rates back down.
Frequently Asked Questions
How Are Claims Logged?
Claims find their way into one of two main databases, where they linger—seven years in one, five in the other. You can request your records to double-check for accuracy and keep tabs on your insurance history.
Should I File for Minor Fenders or Small Mishaps?
If it’s a solo mishap (say, denting your mailbox), sizing up repair costs against your deductible helps decide if filing is worth it. With other drivers involved, swapping insurance details is prudent even if you plan to settle privately. After all, hidden medical bills or repairs might balloon later, making claims necessary.
Do Weather-Related Claims Inflate My Home Insurance?
Weather damage claims usually don’t trigger big premium jumps, but outcomes differ by insurer and case.
What Happens if I Bombard My Insurer with Too Many Claims?
Stacking claims will likely drive your premiums through the roof. Some insurers might even pull the plug on your policy. Worried about this? Have a chat with your agent to explore options.
How We Crunch The Numbers
Auto Insurance Rate Methodology
Bankrate taps Quadrant Information Services to sift through April 2025 data, covering all ZIP codes and carriers across every state plus D.C. Rates are population-weighted and calibrated for a 40-year-old male and female with spotless driving records, good credit, and standard full coverage:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
Minimum coverage rates reflect each state’s legal baseline. Profile drivers commute 12,000 miles annually in a 2023 Toyota Camry during a five-day workweek. Discounts apply for bundling and paperless billing.
Note: These are sample figures for comparison only. Your actual quotes will vary.
Homeowners Insurance Rate Methodology
Using the same source and period, Bankrate’s home insurance analysis profiles married homeowners with pristine claim history and sound credit, carrying the following coverage limits:
- Coverage A (Dwelling): $300,000
- Coverage B (Other Structures): $30,000
- Coverage C (Personal Property): $150,000
- Coverage D (Loss of Use): $60,000
- Coverage E (Liability): $500,000
- Coverage F (Medical Payments): $1,000
Deductibles include $1,000 standard, $500 hail, and 2% hurricane (or closest available). As with auto, these are example rates for side-by-side comparison; actual premiums differ.
Additional Variables Considered
- Credit tiers: Ratings range from poor to excellent, factoring credit scores with nuances. Note certain states restrict credit use.
- Claims history: Sample claims include fire, liability, theft, and wind losses.
- Home age: Builds from 1959 to 2020 analyzed.
- Deductibles: Varied from $1,000 up to $5,000.