If you are involved in an accident, you may worry about how it will affect your car insurance premium. This is especially worrisome for high-risk drivers, who may already pay large sums for their insurance; however, understanding how a claim affects your payments will help you know what to expect. Below is a brief overview of how car insurance companies adjust rates after a claim is filed.

How Does a Claim Impact Car Insurance Rates?

If you’re in an accident, changes to your insurance rates depend on the extent of damage, the cause of the incident, and your driving history. If there’s little damage, such as a dent, then the insurance company doesn’t need to pay as much for repairs, which means your rates likely won’t increase much. If you’re at fault of the accident, then your rates will likely increase because the insurance company views you as an increased risk. Finally, if you have a blemish-free driving record, you’re less costly to insure, so you’ll be rewarded with less severe increases. However, car insurance companies vary on this. Contact yours to determine how your claim affects your premiums.

Should I File an Insurance Claim?

While it may be tempting to skip filing a claim to protect your current premium, it is not worth the risk. If another driver was involved, you need to cover damages to their vehicle and applicable injuries. Even if the driver seems reasonable, trying to settle it on your own could lead to complications if they increase their list of work done to their car or procedures done to correct injuries. Working with a car insurance company protects you from being scammed by a stranger. If you’re still hesitant to file a claim, remember that most rates return to the original amount after a few years.

If your car insurance rates have increased significantly due to your driving record, then switch to 1st Choice Insurance in Fairfield, OH. They offer affordable policies for high-risk drivers, and their team can help those with bad credit secure protection. In addition to car insurance quotes, they offer homeowners and motorcycle insurance. Call (513) 860-0666 to speak to an agent, and visit their website to learn why they’re one of the go-to car insurance companies in the Cincinnati area.