This person has a spotless driving record of 30+ years. No tickets, no accidents. The insurance is with a well known national company.

 

  • Jason S 9:08 am on March 10, 2010

    The circumstances behind the claim will determine how and if the rates on the policy will increase. The answer is anywhere from 0% to 100% or more, unfortunately. if this was a rather small claim (i.e. backed into a vehicle in the parking lot) the change in rates will be negligable. If it was a bad wreck (i.e. three car pile up with mutliple injuries) it could have a big impact on your rates.

    I would not worry about it too much until your renewal comes out and if this person has been with the same company for a long time, then the company should do their best not to increase rates too much.

    Good luck!

  • Richard 9:08 am on March 10, 2010

    There are no averages.

    Insurance is based upon very complicated sets of calculations. The rates are determined by what the company calculates is needed to (1) stay in business and (2) make money doing so.

    Each company seems to calculate their own rates and if these give numbers which seem too low in comparison to their major competitors, they just adjust the rates upward.

    It is not only the fact that a claim was placed that is important. The over all financial stability of the company might have more to do with rate changes. There are also some state laws (I do not know about federal laws) which prevent rates from changing too rapidly.

    Given the details you posted, I have known some companies to adjust the rate by as little as one-half of one percent (based upon the driver had paid premiums for a long time and never placed a claim). Another company might charge 10 % more based upon a recent increase in claims from many customers.

    Companies also know that if any rate increases too rapidly, a customer might use this as an excuse to change companies.

  • kitkat94670 9:08 am on March 10, 2010

    Each claim is taken into account on its own merits. Fault is determined by the available facts and testimonies of those involved.
    Rates may go up if you are found to be at 100% at fault. However, many companies have a forgiveness policy for the first accident.
    The best thing to do is to call your insurance agent and inquire about you particular circumstance. They will not raise your rate for simply asking.