One of the biggest fears people have about insurance is not the accident itself — it’s what happens after the claim. Many policyholders hesitate to file claims because they worry their premium will increase, even when the damage is clearly covered.
So the real question becomes: Does filing an insurance claim actually increase your premium, or is that just a myth?
The answer depends on the type of claim, the circumstances, and your overall insurance history.
Short answer: can filing a claim increase your premium?
Yes, it can — but not always.
Some claims have little to no impact on premiums, while others almost always lead to higher costs at renewal. The difference usually comes down to:
- Fault
- Claim frequency
- Type of insurance
- Severity of the loss
Understanding these factors helps you decide when filing a claim makes sense.
Why insurance companies adjust premiums after claims
Insurance pricing is based on risk prediction, not punishment.
When a claim is filed, insurers evaluate:
- The likelihood of future claims
- Patterns of loss
- Overall claim frequency
- Cost of the claim
A single claim doesn’t automatically label you as high risk, but patterns matter.
Claims that are more likely to increase premiums
Some claims are more likely to affect premiums, especially when they suggest ongoing risk.
Examples include:
- At-fault auto accidents
- Repeated claims over a short period
- Large or costly losses
- Claims involving liability
These claims indicate a higher chance of future payouts.
Claims that may NOT affect premiums
Not all claims are treated equally.
Claims that are less likely to raise premiums include:
- Comprehensive auto claims (theft, weather)
- Single, low-cost claims
- Claims where you were not at fault
- First claims after a long claim-free period
Even then, outcomes vary by insurer and policy.
For a deeper look at claim outcomes, see Why Insurance Claims Get Denied (Even When You’re Covered).
Real-life example: when filing a claim makes sense
A driver experiences hail damage that costs $4,000 to repair. The deductible is $500.
In this case:
- Filing a claim likely makes financial sense
- The loss is significant
- The cause is outside the driver’s control
The potential premium increase may be far less than the repair cost.
Real-life example: when filing a claim may not be worth it
A renter experiences minor damage costing $600, with a $500 deductible.
Here:
- The payout would be minimal
- The claim still counts toward claim history
- Future premiums could be affected
In these cases, paying out of pocket may be the better option.
Claim frequency matters more than people think
One of the biggest factors insurers consider is how often you file claims, not just how large they are.
Multiple small claims can:
- Signal higher ongoing risk
- Affect eligibility for discounts
- Lead to higher renewal premiums
This is why some people regret filing minor claims.
How deductibles factor into the decision
Higher deductibles often:
- Discourage small claims
- Reduce premium increases
- Shift responsibility to the policyholder
Understanding this tradeoff helps set realistic expectations. For clarity, see Insurance Premium vs Deductible: What’s the Real Difference?.
Common myths about filing claims
Many people believe:
- Any claim automatically raises premiums
- Claims follow you forever
- Insurers punish honest claims
- Avoiding claims guarantees low premiums
In reality, insurers look at patterns, not isolated events.
Does filing a claim affect all insurance types the same way?
No. Impact varies by policy type:
- Auto insurance: Often affected by fault and frequency
- Renters insurance: Smaller claims may still matter
- Home insurance: Claim history is heavily evaluated
- Pet insurance: Claims usually affect premiums over time
Each category has its own pricing logic.
Frequently asked questions
Should I always file a claim for covered damage?
Not always. Consider the deductible, payout amount, and long-term impact.
Can I ask my insurer before filing?
You can ask general questions, but formal claims are usually recorded.
How long do claims affect premiums?
It varies, but claims often influence pricing for several years.
Does not filing claims guarantee lower premiums?
No. Market and regional factors still apply.
What to do next
Before filing a claim:
- Compare repair cost to your deductible
- Consider claim history and frequency
- Evaluate whether the loss is manageable out of pocket
- Understand the type of claim being filed
- Decide based on long-term impact, not just short-term relief
This approach helps you use insurance strategically.
Final thoughts
Filing an insurance claim isn’t automatically good or bad — it’s a financial decision. Insurance is meant to protect you from losses you can’t comfortably absorb, not every minor expense.
Knowing when to file — and when not to — helps you get real value from insurance without unnecessary premium increases.
Related Guides
- Why Auto Insurance Premiums Increase Even Without an Accident
- Insurance Premium vs Deductible: What’s the Real Difference?
- Why Insurance Claims Get Denied (Even When You’re Covered)