The Impact of Claims History on Your Car Insurance Rates
If you’ve ever felt like your car insurance bill suddenly jumped for no obvious reason, your claims history might be the culprit. Whether you’ve had a fender bender, filed a comprehensive claim for hail damage, or even had a hit-and-run, insurance companies take note of every report. These details can make a big difference in what you pay each month.
Understanding how claims history affects your car insurance rates doesn’t have to be complicated. In this guide, we’ll walk you through how it works, why it matters, and how to keep your premiums in check—without needing a degree in insurance.
What Is a Claims History?
Let’s start with the basics. Your claims history is a record of every claim you’ve made on your auto insurance policy. This includes:
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Accidents (whether you were at fault or not)
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Damage from weather, theft, or vandalism
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Liability claims from others if they were hurt or had property damage
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Towing and roadside assistance claims (depending on your provider)
Insurers use this record to predict your future risk. It’s kind of like a credit report—but instead of tracking your spending habits, it monitors your driving-related incidents.
Why Car Insurance Companies Care About Your Claims History
Car insurance companies are in the business of managing risk. Every time you file a claim, they pay money. The more frequently you file claims (especially if you’re at fault), the more risky you appear to them.
Here’s how your claims history might raise red flags:
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Multiple claims in a short time: This can signal a pattern of high risk, which may result in significantly higher premiums.
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At-fault accidents: These weigh more heavily than no-fault or weather-related claims.
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Type of claim: A major collision or bodily injury claim will impact your rate more than a broken windshield.
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Frequency and severity: The more expensive the claims, the more likely your rate is to go up.
Even if an accident wasn’t your fault, it could still affect your premium, though typically not as much as an at-fault one.
How Claims History Impacts Your Insurance Rates
When insurers assess your risk, they assign you a profile based on a range of factors—age, driving record, location, and yes, your claims history. Here’s how that history can directly impact what you pay:
1. Higher Premiums After an At-Fault Claim
If you’re found at fault in an accident, most insurers will raise your premium when you renew. On average, a single at-fault accident can increase your rate by 30% to 50% or more, depending on the severity.
2. Loss of “Good Driver” Discounts
Many companies offer significant discounts to drivers with clean records. If you file a claim, especially an at-fault one, you might lose that discount, and your rate will increase even before the surcharge is added.
3. Claims-Free Periods Are Rewarded
Some insurers offer perks or discounts for going years without filing a claim. A new claim resets that “claims-free” clock and can disqualify you from future savings.
4. Non-Fault Claims Still Matter
Even if someone hits you and the insurance company pays out on your behalf, it can still influence your rate. Insurers may view a pattern of claims, regardless of fault, as a risk indicator.
5. Claim Type Matters
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Collision and liability claims often lead to the biggest increases.
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Comprehensive claims (like damage from hail or hitting a deer) might result in smaller increases—or none at all.
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Roadside assistance or glass-only claims often don’t impact your premium.
Real-Life Example: Sarah’s Story
Let’s say Sarah has been driving for five years and has a clean record. Her premium is $100 per month. One day, she rear-ends someone at a stoplight. The damage to both cars totals $6,000. Her insurer covers the repair costs, but the accident is considered her fault.
When Sarah renews her policy, her premium jumps to $140 per month. She also loses her accident-free discount of $10 per month. Now she’s paying $150—50% more than before.
The takeaway? Even one mistake can make a big financial difference.
How Long Do Claims Stay on Your Record?
Most car insurance companies review your claims history going back 3 to 5 years. However, the exact time frame depends on:
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The insurance company
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The state you live in
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The type of claim
For example, a major at-fault accident may impact your rate for up to 5 years. Minor incidents may only affect you for 3 years. And after that time passes, your premium could drop—assuming you’ve kept a clean record since.
How to Check Your Claims History
You have the right to see what insurers see. You can request your CLUE report (Comprehensive Loss Underwriting Exchange) through LexisNexis. This report shows your auto and property claims from the last 7 years.
You can get one free copy per year at consumer.risk.lexisnexis.com. It’s a good idea to review this before switching insurers or applying for new coverage.
Tips to Lower Your Car Insurance Rates After a Claim
If your premium has increased due to a claim, all is not lost. Here are some ways to bring your costs back down:
1. Shop Around
Each insurance company calculates risk differently. If one raises your rate dramatically, another might not penalize you as harshly. Get quotes from at least three providers to compare.
2. Take a Defensive Driving Course
Many insurers offer discounts if you complete a state-approved defensive driving class. Not only does it improve your skills—it shows insurers you’re serious about safe driving.
3. Raise Your Deductible
If you can afford a higher out-of-pocket cost in the event of a future claim, raising your deductible can lower your monthly premium.
4. Bundle Your Policies
If you have homeowners, renters, or life insurance, bundling them with your auto policy can lead to significant savings.
5. Ask About Discounts
From good student discounts to low-mileage savings, you might qualify for more discounts than you realize.
When Not to File a Claim
It may seem counterintuitive, but sometimes it’s better not to file a claim, especially for small repairs. Here’s when to think twice:
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The damage is less than or just above your deductible.
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You’re at fault for a minor incident with no injuries.
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You’ve filed another claim recently and don’t want to raise red flags.
Paying out-of-pocket in these cases might help you avoid long-term premium increases.
Final Thoughts
Your claims history plays a major role in your car insurance rate. While some incidents are unavoidable, being mindful about when to file a claim—and how to maintain a clean record—can save you hundreds or even thousands of dollars over time.
Car insurance isn’t just about having coverage; it’s about managing risk smartly. And now that you know how your claims history impacts your wallet, you’re one step closer to making the smartest decision for your driving future.
FAQs
1. Can I remove a claim from my car insurance history?
No, once a claim is filed, it becomes part of your record and stays there for 3 to 5 years, depending on the insurer and your state. However, once that time passes, its effect on your premium usually goes away.
2. Will my premium go up if I wasn’t at fault in the accident?
It might. Even non-fault claims can lead to higher rates, especially if you’ve had multiple incidents. Still, non-fault claims typically have a smaller impact than at-fault ones.
3. Do all insurance companies check the same claims history?
Most insurers use reports from databases like CLUE or A-PLUS. However, how they use that data varies. One insurer might overlook a minor claim that another would penalize heavily for. That’s why it pays to shop around.
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