Car Insurance with Multiple Claims

Filing multiple claims can increase premiums and result in a policy cancellation. See our tips on how to handle your second insurance claim.

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Car insurance with two or more claims

Filing multiple car insurance claims can lead to a tricky situation. The primary effect of multiple claims on auto insurance is increased rates. A second — and less likely — possibility is that of policy cancellation or non-renewal. Let's take a look at how to handle multiple auto insurance claims.

Auto insurance rates with multiple claims — table of contents:
  1. Multiple accident claims
  2. Multiple PIP claims
  3. Frequently asked questions
  4. Ways to save money
  5. Additional resources

 


 

Multiple at-fault and not-at-fault accidents

At-fault and not-at-fault scenarios refer to collision and comprehensive claims. A collision claim will be considerably more expensive than a comprehensive claim. A collision claim covers an incident that occurs as a result of the insured driver's actions: for example, colliding with a fixed object or another vehicle.

 

How does a collision claim impact your premium?

On average, an at-fault collision claim raises insurance rates by $384 per six-month policy period. USAA is the cheapest car insurance company after an at-fault accident.

Average Premium After an At-Fault Accident.png

Car Insurance Provider6-Month Premium
Allstate$1,509
Farmers$1,113
GEICO$999
Liberty Mutual$1,179
Nationwide$1,087
Progressive$1,386
State Farm$809
USAA$644

 

All of the above rates are averages, based on our rate-gathering methodology. Use these premiums as a starting point in your search for car insurance. Enter your ZIP code below to get started.

If you’re looking for more information, see our guides below:

 

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How does a comprehensive claim impact your premium?

Comprehensive coverage is designed to cover damage that occurs outside of your control. Below are perils covered by comprehensive coverage:

Comprehensive claims typically don't result in major rate hikes. On average, a comprehensive claim increases auto insurance premiums by $36 over a six-month period.

Average Premium After One Comprehensive Claim.png

Car Insurance Provider6-Month Premium
Allstate$949
Farmers$786
GEICO$638
Liberty Mutual$829
Nationwide$674
Progressive$908
State Farm$657
USAA$474

 

 

How do two comprehensive claims impact your premium?

Two comprehensive claims raise car insurance premiums $82 every six months — a $46 increase versus a single comprehensive claim. Drivers with two comprehensive claims on their records should consider USAA, State Farm, or Nationwide as good starting points when shopping for policies.

Average Premium After Two Comprehensive Claims.png

Car Insurance Provider6-Month Premium
Allstate$952
Farmers$815
GEICO$684
Liberty Mutual$831
Nationwide$674
Progressive$1,047
State Farm$657
USAA$484




 

Personal injury protection claims

If you live in one of the 12 no-fault states in the US, you'll be required by state law to carry personal injury protection (PIP) insurance. PIP covers the bodily injury costs and medical bills sustained by you and your passengers in a car accident — regardless of fault. On average, a single PIP claim raises car insurance rates by an average of $6 per year. A pair of claims will increase rates by $37 per six-month policy period. Below are cost estimates from popular insurance companies.

Average Premium After PIP Claims.png

AVERAGE 6-MONTH INSURANCE COSTS AFTER PIP CLAIM
Car Insurance ProviderPremium with One PIP ClaimPremium with Two PIP Claims
Allstate$949$949
Farmers$772$796
GEICO$638$684
Liberty Mutual$827$829
Nationwide$674$674
Progressive$802$908
State Farm$657$657
USAA$474$484

 

For a single PIP claim, USAA is the cheapest auto insurance company at $474 for a six-month car insurance policy. Drivers ineligible for USAA's coverage should consider GEICO, the second-cheapest option.

Keep in mind some insurance companies will drop clients after a second PIP claim.

For more information regarding PIP claims, see our guides below:

 

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FAQ: auto insurance with multiple claims

How many car insurance claims can be filed per year?

There is no limit on how many claims you can file. However, most insurance companies will drop you as a client after three claims over a three-year period, no matter what type of claim.


How many claims can you make before State Farm drops you?

State Farm has a penchant for being more selective with their policyholders, but how many claims it takes to be dropped from coverage depends. Insurers can use their own discretion to decide what it takes for them to non-renew or cancel policies.


Can I file a claim with two insurance companies?

In most scenarios, no. The at-fault driver's insurance company is responsible for handling and paying out for the claim up to their coverage limits. However, there may be some unique circumstances where this won't always be the case, such as the at-fault driver being underinsured (doesn't carry enough coverage to cover all losses) or if 50/50 fault is determined. In these cases, you'll need to speak to a claims representative at your insurance company.

Is accident forgiveness worth it?

Having accident forgiveness as part of your auto insurance policy ensures your rates won't increase after an at-fault accident. Generally, you'd need to have been at least a few years accident-free (depends by the company) to qualify for accident forgiveness. It may be not worth it if you have recent accidents on your record, but if you've gone at least a few years without any, it could be a great safeguard against potential incidents.

 


 

Ways to save on auto insurance after claims

There's no magic trick to lower premiums after multiple claims. But there are some steps worth considering before and after your insurance premium has been impacted by your claims.

Shop around

Shopping for new car insurance quotes every six months is the most important way to find affordable car insurance. Most accidents and violations will no longer be chargeable after three to five years.

Not every insurance company prices policies equally after claims. The only way to know for sure you’re being charged the least amount for your claim is to see insurance premiums from other companies.

 

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Be smart with future claims

Be careful with how you use your insurance coverage. Filing more than three claims in a three-year period can put you at risk of having your car insurance policy non-renewed or canceled.

If you’re in a situation where you think you need to file a claim, follow our guide.

  • Use our State of Insurance analysis to see how much your particular claim type would raise your rate in your state. Consider this increase over three years as that is how long you will be charged by your insurance company.
  • Get an estimate for the repairs out a mechanic.
  • Compare the rate increase plus your deductible to the out-of-pocket repair costs. If it is cheaper to file a claim, do that. But be extra cautious if you’ve had already filed two claims in the past three years.

 

Customize your coverage

The general rule of thumb in the insurance world is if your vehicle is worth less than $4,000, you do not need comprehensive or collision coverage. This is because the claims payout you would receive is worth less than the value of the premium you are paying. Determine the value of your vehicle(s) by using Kelley Blue Book and NADA online. All of your vehicles do not need to be at the same coverage level.

If it is determined you need physical comprehensive and collision coverage but are still looking to lower your insurance premiums, consider raising your deductible. Because your premium and deductible are inversely related, you lower your bill by raising your deductible. Standard deductibles range from $250 to $1000.

 

Look for discounts

See if you qualify for the following discounts.

 

Consider telematics

If not-at-fault accidents are causing your premium to be high, see if your company has a telematics program. Telematics use in-car and mobile devices to use the way you drive to determine your premium. In theory, if you’re a safe driver, your premium can be lowered. Safe driving habits include:

  • Gradual braking
  • Moderate turning and accelerating speeds
  • Daylight driving

Below are some cost-savings estimates for popular usage-based insurance programs.

Program

Estimated Savings

Progressive SnapShot

Average of $130

Allstate Drivewise

Average of 10-25%

State Farm Drive Safe & Save

Up to 15%

Esurance DriveSense

Varies

Nationwide SmartRide

Up to 40%

Root Car Insurance

Varies

Metromile

Varies

Liberty Mutual's RightTrack

Average of 5-30%

GEICO DriveEasy

Varies

 

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Ava Lynch LinkedIn

Based in Austin, TX, Ava has been in the insurance industry as a licensed agent for 4-plus years. Ava is currently one of The Zebra’s resident property insurance experts and has been featured in publications such as US News Report, GasBuddy, and Yahoo! Finance.