Filing multiple claims can increase premiums and result in policy cancellation. See our tips on how to handle your second insurance claim.
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.
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.
On average, an at-fault collision claim raises insurance rates by $303 per six-month policy period. USAA is the cheapest car insurance company after an at-fault accident (methodology).
All 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:
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 $31 over a six-month period.
Two comprehensive claims raise car insurance premiums $65 every six months — a $34 increase versus a single comprehensive claim. Drivers with two comprehensive claims on their records should consider Nationwide, State Farm, or GEICO as good starting points when shopping for policies.
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 rates by an average of $4 per six months. A pair of claims will increase rates by $24 per policy period. Below are cost estimates from popular insurance companies.
|Average of One Med-PIP Claim|
For a single PIP claim, USAA is the cheapest insurance provider at $487 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:
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.
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.
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.
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 claims payout you would receive is worth less than the value of 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 deductible range from $250 to $1000.
You can find more information regarding which deductible is right for you here.
See if you qualify for the following common discounts.
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
Below are some cost-savings estimates for popular usage-based insurance programs.
Average of $130
Average of 10-25%
State Farm Drive Safe & Save
Up to 15%
Up to 40%
Root Car Insurance
Liberty Mutual's RightTrack
Average of 5-30%