Hey there, Colt here!
We’ve heard it so many times, people are afraid to make a claim because they are afraid their premium rates will increase.
I’m here to go over a few reasons that could be, and also reassure you that it doesn’t necessarily happen every time.
- One reason that might cause a premium increase after making a claim is that you might be losing a claims-free or accident-free discount depending on the policy and carrier.
- Even if you aren’t otherwise penalized for the claim, your rate would still show an increase because that discount you got when you started the policy would no longer apply.
- Another reason for a premium increase after a claim could be that your insurance carrier sees it as an increased risk that you would make another claim.
