From car accidents to kitchen fires, insurance can help you recover from economic set-offs caused by covered dangers. However, this help may have some large strings. Once the car, home or tenant’s claim has been processed, the insurance company can determine that you or your property is at risk more than insured. This could potentially hit policyholders at a higher rate if their policy is updated. You can understand why rate changes can help you determine whether filing a claim is the best option when a loss occurs.
What is an insurance claim?
An insurance claim is a formal request filed with the insurance company for financial compensation in the event of an unexpected loss or loss. For a claim to be approved, the event causing the loss must be considered a covered risk. Any events that are excluded or are not covered by the policy will be denied without payment.
The process of filing a claim is similar for car, home and tenant insurance contracts, and claims generally fall into one of two categories: first-party and third-party. The first party claim is when you, the policyholder, file a claim against your policy for your own loss. A third party claim is when another person files a claim against your policy for any damage or loss that your negligence may have caused to them. Auto, home and tenant insurance are different insurance products, but they all have first party losses and third party loss coverage types.
Why does an insurance claim affect your fees?
The price of your home or car insurance is based on risk. In particular, the risk of filing a claim costs money from the insurance company. Before filing a claim, the risk calculation is based on valuation factors such as age, location, and credit scores in most states. File a claim increases the risk of another claim and you will be charged a premium. Policyholders who frequently file claims regardless of their claim amount risk policy cancellations.
Auto insurance claim
Not all car bills have the same effect on your car insurance premiums. If the driver is negligent in an accident and a failure, the insurance company will usually apply an additional fee to the policy. This usually results in a sudden rate increase for an average of three years. Drivers may also experience higher rates due to accidents and loss of safe driver discounts.
One disability car accident could result in a 45% increase in fully covered car insurance premiums. However, rate increases will vary depending on the situation, carrier and condition. For example, a car accident caused by a smooth road may have a lower surcharge than those involving speeding and private drivers.
Drivers can also file a comprehensive claim for losses such as fire, theft, hail, or flooding. These claims are considered not a hindrance, so the rates usually do not increase. If so, it is usually a small amount and does not come with an additional fee. Below we outline how insurance that exceeds the national average cost of car insurance increases when you are involved in a disability accident. Though it is not directly related to filing a claim for an accident, the difference in cost can be understood as the severity of the increase compared to the absence of a claim or case.
| average. Fully covered car insurance costs | average. Minimum range of car insurance costs | |
|---|---|---|
| There is no claim | $2,685 | $800 |
| After a single damage claim | $3,884 | $1,174 |
| Percentage of difference | 45% | 47% |
| *Based on bank rate analysis of quadrant information service rate data in April 2025 |
Homeowner Insurance Claim
Homeowner insurance is divided into two parts. Section I covers property damage (your home), and Section II provides liability compensation (damage to others). Both types of homeowner claims can cause higher fees, but again, they depend on the type of claim and the risk of a similar claim. According to the Insurance Information Institute (TRIPLE-I) 2022 data, the latest available 97.8% home claims are property damages, while 2.1% are for liability claims.
Careers use home location and susceptibility to natural disasters as key assessment factors. Another factor is the family’s previous claim history, which can indicate the possibility of filing a similar claim with the insurance company. Your home’s premiums can increase based on the amount of your claim paid and the likelihood of subsequent claims. For example, water damage from a child washing the toy towards the toilet may result in high billing payments, but the risk of recurrence may not be high. Meanwhile, wildfire claims have high payments and are at a higher risk of recurring.
The interest rate after a liability claim is usually increased as it is paid only if the homeowner is negligent. While it cannot stop wildfires from destroying your home, claims like dog bites are seen differently.
The national average cost of pre-claimed home insurance is $2,267, $300,000 in residential coverage. Below is a guide to how your home insurance premiums increase after different types of claims.
| Types of claims | The amount of the dollar billed amount | average. Annual rate after billing | Percent increase |
|---|---|---|---|
| fire | $80,000 | $2,397 | 6% |
| responsibility | $31,000 | $2,399 | 6% |
| theft | $5,000 | $2,414 | 6% |
| wind | $12,000 | $2,392 | 6% |
| *Based on bank rate analysis of quadrant information service rate data in April 2025 |
Renter’s Insurance
Renter insurance is much cheaper than homeowner insurance as it covers only your personal property and liability. However, that also means that rate changes due to claims are more pronounced.
Like home insurance, renters’ policy fees can increase if a claim is filed due to risks related to future losses. Additionally, tenants do not own the property they live in and are not capable of taking the substantial precautions necessary to avoid future losses. According to Triple-I, the average cost for a tenant is insurance. It costs $170 a year or $14 a month.
What is the high risk claim?
High-risk claims are not formal industry jargon, but some policyholders fall into the high-risk category for a variety of reasons, resulting in much higher premiums.
In the case of car insurance, a high-risk driver is one who has had multiple travel violations or accidents related to his driving history. They may also be considered a dangerous driver if they even have one DUI or if they have an insufficient credit history in a state that uses insurance-based credit scores in modeling. These actions indicate that you are more likely to file a claim with the insurance company at a higher payment amount. Getting estimates through non-standard carriers may be a good way for high-risk drivers to find more affordable premiums.
For high-risk homeowners and tenants, airlines are interested in places where they are vulnerable to losses. This includes areas where frequent and expensive losses due to strong winds, wildfires and vandalism are prone to frequent and expensive losses. However, any home can be considered high risk for any of the following reasons:
- The age and condition of the home make it more susceptible to damage
- An empty or empty house
- Aggressive breed
- Attractive nuisances such as trampolines and swimming pools
- A house made from outdated materials
- A home with rebuilding costs beyond the risk tolerance of carriers
Should I avoid submitting a claim to prevent fee changes?
it depends. If the cost of repairing damage to your car or home doesn’t significantly exceed your insurance deductible insurance, it could be a long-term financial decision to postpone the claim and pay it from your pocket.
However, any car accident that causes injury or property damage to another party should be reported immediately to the insurance company, even if the other party wishes to “eliminate the insurance.” Failure to report an accident or stay at the accident site can be a serious legal failure and can increase your insurance premiums.
Whether you submit a request or not, you will want to collect information from other drivers and report the incident to your provider if the other party submits a file against you. In this scenario, we recommend collecting evidence from eyewitnesses and obtaining police reports to solidify aspects of the story and protecting yourself from potentially rate hikes.
Can I save on insurance after claiming?
Insurance claims can cause interest rates to rise over a temporary period of time, typically three to five years. However, there are still ways home and car owners can save alike during this probation period.
- Increase deductibles : The deduction is the amount that the insurance company pays for the claim before it begins chipping. As a result, providers usually trade for higher deductions and lower premiums.
- Use discounts : Even if you have a claim for your records, you can still qualify for a discount on your home and car. From bundling to paperless claims, insurance agents are happy to discuss saving opportunities. This is because in many cases these discounts benefit you and both.
- Increase security: Investing in your home security system or storing your car in a safer place like a garage could be rewarded with insurance savings given these measures reduce your claims.
- Drive safely: Avoiding accidents and traffic tickets for years and consecutive years can help reduce your premiums.
FAQ
Methodology
Automatic fee
Bankrate uses Quadrant Information Services to analyze April 2025 fees for all ZIP codes and carriers in all 50 states. The cited fees are based on 40-year-old male and female drivers with clean driving records, good credits and the following full coverage limits:
- $100,000 per person physical injury liability
- $300,000 for each accident
- Liability for property damages of $50,000 per accident
- Uninsured driver physical injury for $100,000 per person
- Uninsured driver’s physical injury for $300,000 per accident
- $500 collision deduction possible
- Comprehensive $500 deduction
To determine the minimum coverage limit, bank rates used minimum coverage to meet the requirements of each state. Our base profile driver owns a 2023 Toyota Camry, commutes five days a week and drives 12,000 miles a year. Bundles and paperless billing discounts apply.
These are sample rates and should be used for comparison purposes only. Your quote is different.
If specified, the base profile has been modified with the following driver characteristics:
Home Rate
Bankrate utilizes Quadrant Information Services to analyze all ZIP codes and carrier fees for April 2025, 50 and Washington states, and DC citation fees for basic profiles are based on married men and women homeowners with clean billing history, good credits and the following coverage restrictions:
- Coverage A, Residence: $300,000
- Coverage B, other structures: $30,000
- Coverage C, Personal Property: $150,000
- Coverage D, Loss of Use: $60,000
- Compensation E, liability: $500,000
- Compensation F, Medical Costs: $1,000
Homeowners also have a $1,000 deduction amount, a $500 deductible deduction amount, and a 2% hurricane deduction (or the closest deductible amount available).
These are sample rates and should be used for comparison purposes only. Your quote is different.
If specified, the base profile has been modified with the following homeowner characteristics:
