This is a tricky business. Let’s look. According to a big, involved firm, often after filing a single claim of $2,000 or more, premiums may rise some 40 percent! A second claim in one year can bring the rate up over 90 percent.
If you are relatively new with your carrier, not only is the claim probably a cause for a rate increase, but may also come with a decision not to renew your policy. Generally, insurers have no right to hike premiums if the total damage from an accident is $2,000 if no one was injured or killed in the accident. Two or more accidents a year could trigger a surcharge.
Often it is less costly to pay out of pocket — especially if you previously filed a claim. Always file when damage and injuries are significant. Think before you act.