Most people hate to file a claim with their auto insurance companies because they know they can expect a rate increase. This is because insurance companies determine premiums based on risk factors, and consumers who have filed claims for accidents present a greater risk.
You might be wondering what you can claim on your auto insurance policy without causing a rate increase. This is a difficult question to answer because it depends on many factors, and no two cases are ever the same. Nevertheless, there are situations where you don’t need to fear higher premiums.
For example, some states are “no-fault” states, which means that they don’t recognize fault in traffic accidents. Getting hit on the road is the same as hitting someone else when it comes to auto insurance claims.
However, other states are “fault” states, which means that they recognize drivers who do not cause accidents. Your rates can increase even if you were rear-ended or side-swiped by another vehicle, and even if the driver of the other vehicle was intoxicated. It is important to know the law in your state so you can prepare for any eventuality.
If you live in a “fault” state, you can claim an accident on auto insurance without causing a rate increase. This is because you are not a higher risk simply because you were in the wrong place at the wrong time. Unfortunately, in “no-fault” states, you might cause a rate increase if you file any claim on auto insurance.
You might also be able to claim an accident on auto insurance without a rate increase if your insurance company offers an accident forgiveness program. This means that, for loyal customers, a single accident might not increase your premiums because the insurance company is willing to overlook a single mistake.
In order for you to take advantage of accident forgiveness, however, you will probably have to speak directly with your insurance agent. Let them know that you are a good driver (mention your driving record), and ask if they will forgive the accident.
In most cases, you won’t know what you can claim on auto insurance without a rate increase unless you communicate with your agent. Explain the circumstances of the accident (including any mitigating details), and see what they are willing to offer.
According to CarInsurance.com, the question of what you can claim on auto insurance depends on the precise circumstances of the accident or damage. Where did the accident occur? Was there alcohol involved? How much damage was caused.
In the case of theft, you might be able to avoid a rate increase if your vehicle was properly sheltered and if you had installed a security system on the car. The same is true if the car is eventually recovered with only minor damage. Again, talk to your insurance agent.