Auto insurance premiums are the regular payments that car owners make to their insurance provider in exchange for coverage against financial loss in case of an accident or other covered events. One question that often arises among car owners is whether their auto insurance premiums will increase after they file a claim. The short answer is yes, but the long answer is more complicated.
When an individual files a claim with their auto insurance provider, the insurer typically investigates the incident to determine who was at fault and the extent of the damage. If the policyholder was at fault, the insurance company will typically pay for the damages and may increase the policyholder’s premiums as a result. This is because the insurance company perceives the policyholder as a higher-risk driver after the accident, and therefore, they may be more likely to file future claims.