Hey there, Huser Insurance Agency LLC customers!
We hope this blog post finds you well. We’re writing to you today to talk about the implications of making an insurance claim.
As you know, insurance is designed to protect you from financial loss in the event of a covered event. But did you know that making a claim can actually have some implications for your overall premium?
Here’s what you need to know:
- Making a claim will cause your premium to go up. The amount of the increase will vary depending on the type of claim you make, the amount of the loss, and your insurance company’s policies. For example, a small claim, such as a claim for a broken window, may only cause your premium to increase by a few dollars. However, a larger claim, such as a claim for a car accident, could cause your premium to increase by hundreds or even thousands of dollars.
- There are a few reasons why insurance companies raise premiums after claims.
- First, claims are expensive for insurance companies to pay out. The money that insurers pay out in claims comes from the premiums that they collect from policyholders. So, when more claims are filed, insurers need to raise premiums in order to make up for the losses.
- Second, making a claim can signal to insurers that you are a higher risk policyholder. This is because people who make claims are more likely to make claims in the future. As a result, insurers may raise premiums for policyholders who have made claims in order to offset the increased risk.
- Here’s an example to illustrate this point:
- Let’s say that you live in an area that is prone to hailstorms. If you make a claim for hail damage to your roof, your insurance company is going to take that into account when they renew your policy. They’re going to see that you’ve had hail damage in the past, and they’re going to assume that you’re more likely to have hail damage in the future. As a result, they may raise your premium.
- Of course, there are some exceptions to the rule. For example, if you are not at fault for an accident, your insurance company may not raise your premium. Additionally, some insurance companies offer accident forgiveness programs, which can prevent your premium from increasing after a claim.
Here are some things to consider when making an insurance claim:
- The size of the loss. The larger the loss, the more your premium is likely to go up.
- The frequency of your claims. If you make multiple claims in a short period of time, your premium is likely to go up even more.
- Your insurance company’s policies. Some insurance companies have stricter policies about raising premiums after claims than others.
Here are some tips to help you reduce the impact of making an insurance claim on your premium:
- Choose the right insurance company. Some insurance companies have more lenient policies about raising premiums after claims than others.
- Shop around for the best rates. It’s important to compare rates from different insurance companies before you make a claim.
- Be prepared to document your loss. When you make a claim, you’ll need to provide documentation of your loss. This can include things like photos, estimates, and receipts.
- Be honest with your insurance company. It’s important to be honest with your insurance company about the details of your loss. If you’re not honest, your claim could be denied.
We hope this information is helpful. If you have any further questions about insurance claims, please don’t hesitate to contact your insurance agent.
We are so proud to serve our community.
Kindly,
The Huser Insurance Agency LLC Team