Will your premium go up after you file a claim?

File a ClaimWill your premium go up after you file a claim? This is a question that a lot of people tend to ask over the course of a year because so many are worried about claiming due to the belief that they are then going to be punished for doing so over the next few years by the way of increases in their premiums. However, in actual fact it all depends on the circumstances as will now be explained because it is not as straightforward as you may initially think.

Basically, a premium is only going to increase after you file a claim if you are the one that has caused the damage in the first place and that this has either been proven beyond all doubt or if there has been some shared responsibility for the incident. The reason why this is the case is that insurance companies will punish you for being careless even if the blame is split down the middle and the only way in which they can punish you is by putting the claims up as you have cost them money and they simply hate when this happens.

However, if you have been the wronged party and it was not your fault, then the insurance company will deem you to be innocent and they will not hold this against you. The reason for this is that they will claim for damages off the other insurance company, so they will not be out of pocket and your premiums will not increase as a result. You should, therefore, contact them as soon as something happens if this is the case as they will be more than happy to deal with you and you can sort it all out in next to no time at all.

If they do go up, then it is impossible to state here just how much they will increase by as this does vary depending on the type of policy that you have as well as the company you are with, what has happened, and if you have made some kind of a claim before. It stands to reason that you will be punished by them if they see you as a recurring liability and this increase is going to be there for a number of years and will only get worse if you continue to claim in the next few years.

To conclude, your premiums will go up if you make a claim, but only if you have been responsible for the incident that has resulted in the insurance company having to pay out. It has to be determined that you were the guilty party, but how much they will increase by will vary between companies and it will also depend on whether or not this is the first time you have claimed. Your premiums will increase for a number of years, but will start to come down if you do not make any further claims as this will result in you rebuilding your reputation with them and let them see that you really can be trusted once again.

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