Car insurance is a must-have for anyone who drives a vehicle. It provides financial protection in case of an accident or other covered events. Do you find yourself wondering whether a comprehensive insurance claim will raise your insurance rates? Well, you’re not alone! It’s a common concern among many policyholders.
When it comes to car insurance, there are two main types of claims: collision and comprehensive. Collision coverage protects you in case of a collision with another vehicle or object, while comprehensive coverage covers non-collision incidents such as theft, vandalism, and natural disasters.
Some people hesitate to file a claim because they fear their rates may increase. In this blog post, we’ll dive into the topic of comprehensive claims and explore whether they impact your insurance rates. So, let’s get started and put your mind at ease!
Does a Comprehensive Insurance Claim Raise Your Insurance Rates: Frequently Asked Questions
How do comprehensive claims affect your car insurance?
Comprehensive insurance claims can potentially impact your car insurance rates, but it’s not always the case. Comprehensive coverage is designed to protect your vehicle against damage not caused by a collision. This can include theft, vandalism, natural disasters, and other non-collision incidents. When you file a comprehensive insurance claim, your insurance company will typically cover the cost of repairs or replacement minus your deductible.
How much does car insurance go up after a claim?
In Ontario, insurance companies cannot increase your rates for a claim that is not your fault. Therefore, if you file a claim covered by your comprehensive insurance, it won’t cause your premium to rise. However, if you file frequent comprehensive claims, insurance companies may increase your deductible during your renewal period. In addition, if you file several comprehensive claims within a short time, your insurance provider may choose to exclude comprehensive coverage altogether when you renew your policy.
How can I lower my comprehensive car insurance premiums after a claim?
While your rate won’t change after submitting a comprehensive insurance claim, following our list below can help you lower your car insurance premiums nevertheless.
- Increase your deductible: Increasing your deductible can lower your monthly premium. Just be sure you can afford the higher out-of-pocket cost if you need to file another claim.
- Shop around: Different insurance providers have different rates and policies. Shopping for the best deal can help you find a lower rate policy.
- Bundle your policies: Many insurance companies offer discounts for bundling multiple policies, such as home and auto insurance.
- Consider reducing coverage: If you have an older car or one worth less than the cost of comprehensive coverage, consider reducing or eliminating this coverage.
- Ask for discounts: Ask your insurance provider if there are any discounts you may be eligible for, such as loyal customer discounts, low mileage discounts, or safety feature discounts.
How long does a claim stay on your insurance?
In Ontario, a car insurance claim can remain on your record for six years. Any claims you make during that time will be visible to insurance companies when calculating your rates. Even if you switch insurance providers, your claims history will still be accessible to any new insurers you work with. This is because the Ontario government requires insurers to share claims history information through the Claims History Database (CHDB).
Is it worth claiming car insurance for a dent?
Whether it’s worth claiming car insurance for a dent depends on several factors, such as the severity of the damage, the cost of repairs, and your deductible.
If the dent is minor and the cost of repairs is less than your deductible, it may not be worth filing a claim. This is because you would pay for the repairs with your deductible amount anyway. Your insurance company will not cover any expenses since they cost less than the deductible.
For example, let’s say your hood is dented from a fallen tree branch after a heavy windstorm. If your comprehensive deductible is $300 and the repair cost is only $250, you would pay the full $250 to repair it, anyway. Ideally, you would not submit such a small claim and tarnish your claims-free record. Save your claims-free rating for a larger loss.
On the other hand, if the dent is significant and the cost of repairs is much higher than your deductible, it may be worth filing a claim.
For instance, let’s say your car was parked on the street during a freak hail storm with decent-sized hail, leaving dents all over your hood, roof and trunk. The quote to repair the dents is $1,250, and your comprehensive deductible is $300. In this case, your insurance company would cover the cost of repairs beyond your deductible. So, you would pay your $300 deductible, and then your insurance company would cover the remaining $950.
Ultimately, deciding to file a claim for a dent depends on your circumstances, and you should weigh the potential benefits and drawbacks before making a decision.
For additional details about making a comprehensive car insurance claim or to inquire about your existing insurance premiums, feel free to contact our expert insurance team here at aha Insurance by calling 1-855-242-2440 or sending an email. We look forward to speaking with you!