One of the most common questions we hear is: ‘If I make a claim, will by insurance go up?”
The answer depends on several factors – but understanding how claims impact premiums can help you make informed decisions.
How Insurance Premiums Are Calculated
Your premium is based on risk. Insurance companies consider:
- Claims history
- Type of claim
- Frequency of claims
- Driving record (for auto)
- Property risk factors (for home)
- Industry and operations (for business insurance)
A claims-free history often qualifies you for discounts or preferred rates.
When a Claim May Impact Your Premium
Not every claim leads to a rate increase. However, premiums may change if:
- You are found at fault in an auto accident
- You file multiple claims within a short period
- The claim indicates increased future risk
For example, several water damage claims may signal a maintenance issue that insurers view as ongoing risk exposure.
Claims That May Not Affect Your Rate
Some situations may have minimal impact, such as:
- The cost of repairs vs. your deductible
- Potential impact on your long-term premium
- Whether the loss exceeds what you can reasonably pay out-of-pocket
Your broker can help you weigh these factors.
At McFarlan Rowlands, we believe in helping clients make informed decisions – not just reacting in the moment.
If you’re unsure whether to file a claim, contact us first. We’ll walk you through your options.