Will Making a Claim Raise My Insurance Rates?
Will filing a claim increase my premiums?
Filing an insurance claim can indeed impact your premiums, but the extent of the increase depends on
various factors, including your insurance provider, the type and frequency of claims, and your individual
circumstances.
Most of the time after an accident, if anyone involved files a claim, then everyone involved will have
their premiums will go up, regardless of who is at fault.
How much of an increase in my insurance will a wreck cause?
Depending on the damage done, like whether it is a minor fender bender or a total loss, and who was at
fault, among other factors, it will adjust exactly how much your premiums will increase.
However, not all claims automatically lead to increased premiums. Some insurance policies include
features like accident forgiveness or claims forgiveness, which might prevent your premiums from going
up after your first claim or under certain circumstances.
Because your rates are likely to increase after an accident, it is vital that you pursue your claim to ensure
that you are fully repaid for the damages you incurred during your accident.
Will my insurance get cancelled if I make a claim on it?
In many cases, making a single claim might not lead to cancellation of your insurance policy. Insurance
companies typically evaluate several factors before deciding to cancel a policy, like whether you have a
history of multiple claims, or whether the claim was due to an accident or an avoidable incident.
However, if you have a history of multiple claims, especially if they are for similar incidents, or if the
claim is for a significant amount of money, your insurance company might view you as a higher risk and
decide to cancel your policy.
This happens from time to time, and it might be a signal that the insurance company that is fighting you
on your coverage may not be the carrier you want to stay with. Many of our clients are so fed up with
their insurance provider that they change coverages after their claim.
How much $ should my claim be to make an insurance claim?
If the claim is worth over $5,000 in total, or over $2,000 in medicals, you will likely benefit from making
a claim.
Does another insurance company know about my prior wrecks?
Most large insurance companies share information about claims, wrecks, and coverages. One company
will likely find out from another when they consider how much of a risk you may be, which can have an
effect on your premiums.
Luckily, most insurance companies only look back three to five years in your driving record when
calculating new rates. This means that past driving incidents will not result in permanently increased
insurance premiums, only temporary increases.
Do I need auto insurance?
Yes, Mississippi requires minimum auto liability insurance of 25/50. This means a liability coverage of at
least $25,000 for bodily injury per person, and $50,000 for bodily injury per accident. If you are caught
driving in Mississippi without insurance and are caught, you could face a fine of up to $1,000,
suspension of your license for up to a year, and possible conviction of a misdemeanor.
Additional coverage for auto insurance, like comprehensive, collision, and uninsured/underinsured
motorist coverage are not required, but are highly recommended.
Do I need uninsured/ underinsured motorist coverage?
Yes, this coverage will protect you and your family in the case of someone else causing the wreck, and
not carrying (uninsured) or not carrying enough coverage (underinsured). While it is illegal to drive
without auto insurance in Mississippi, some people still do it, and those people still cause many
accidents.
Uninsured/underinsured motorist coverage will protect you and your family in these circumstances, but
will also protect you in the event of a hit-and-run collision.