Practicing safe driving techniques can’t always keep you from being involved in an accident. What most motorists don’t realize is that a single claim of $2,000 or more will cause their car insurance premium to skyrocket by an average of 41 percent, according to a recent study.

1. How Badly Can Making An Auto Insurance Claim Affect
Your Rates?

2. The Cost of An Aut o Acci dent
With the cost of auto body repair, a
simple fender bender could easily run
$2,000 or more, resulting in higher
insurance rates. Practicing safe driving
techniques can’t always keep you from
being involved in an accident. After all,
that’s why they’re called accidents –
they can happen virtually at any time –
anywhere – and without warning.

3. What most motorists don’t realize is that a single claim of $2,000 or more will
cause their car insurance premium to skyrocket by an average of 41 percent,
according to a recent study.
My Premi um went t o what ! ?

4. Tough Break, Cal i f orni a
California residents can expect the stiffest of all the states’ penalties for
having the misfortune of getting in a wreck – and facing a massive, budget-
busting increase of 86 percent annually.
Meanwhile, Maryland tends to inflict the least amount of financial hardship
nationally with a milder 22 percent boost on average.

5. Aut o Acci dent s and Your Premi um
This information is based on the premise
that someone who files an
insurance claim is regarded as more
likely to get into another accident than a
policyholder who’s managed to remain
claim-free. Dare to follow up the first
accident with a second car insurance
claim in a relatively short period of time
and get ready to be blind-sided with a
whopping premium upsurge at a national
average of 93 percent.

6. The Long Term Af f ect On Your Aut o
Insurance Rat e
For the most part, motorists who purchased auto insurance in California
underestimate the potential negative consequences of making one or more claims
So, when the time comes for them to file an accident claim, they can’t believe their
eyes when their new premium arrives in the mail. Furthermore, it can affect their
auto insurance rate for many years.

7. What Are The Cost l i est Cl ai ms?
Bodily injury and property damage claims are the costliest in terms of premium
increases with an average of 45 percent and 41 percent increase, respectively. On
the other hand, simple comprehensive claims (non-collision related), usually
trigger lesser bumps in annual premiums.

8. The top five states where policyholders face the highest financial impact of
filing a single car insurance claim, which is based on a $2,000 claim against
an insured’s bodily injury coverage, are….
Top 5 St at es Faci ng The Hi ghest
Impact of Fi l i ng A Si ngl e Cl ai m

9. 1. California — 86 percent
2. Massachusetts — 83 percent
3. New Jersey — 69 percent
4. North Carolina — 58 percent
5. Minnesota — 52 percent
*Based On A $2,000 claim against an
insured’s bodily injury coverage.
Top 5 St at es Where Pol i cyhol ders Face
The Hi ghest Fi nanci al Impact Of Fi l i ng
A Si ngl e Cl ai m *

10. 1. Maryland — 22 percent
2. Michigan — 25 percent
3. Montana — 27 percent
4. Oklahoma — 27 percent
5. Mississippi — 28 percent
*Based On A $2,000 claim against an
insured’s bodily injury coverage.
Top 5 St at es Where Dri vers Are Subj ect
To The Lowest Increases*

11. Depending on the severity of the underlying incident, which brought about
the rate hike in the first place, experts say a policyholder can expect to feel
the after-effects for a period of between three to five years.
Of course, that doesn’t necessarily mean the premium won’t drop slightly
before that, but the amount of time they remain higher than their previous
level will be contingent on whether or not another insurance claim is filed in
the meantime.
When Wi l l Thi s St art To Af f ect My
Premi um?

12. Remember – accident claims, together with a number of traffic tickets can
greatly affect your premium as well as making it a great deal more difficult
to find cheap car insurance in California.
What El se Can Af f ect My Premi um?

13. So, use care when you drive as a
smart way to keep your premiums
low. But, don’t assume they’re as
low as they can be. Make sure
you’re getting the best rate on your
car insurance. Why not get a free car
insurance quote today?
Have your auto insurance rates gone
through the roof following an auto
accident? Feel free to share your
thoughts in the comments section
below.
Fi nal Thought s