Does Filing a Windshield Claim Increase Insurance?
If you've recently had the unfortunate experience of filing a claim with your insurance company, you might be wondering how this will affect future premiums.
The answer is that windshield claims can raise car insurance rates in some cases, while others may see no change whatsoever. It depends on what insurer you're with and what state you live in. "Windshield claims are pretty unique to each individual," says Carole Walker, director of the Insurance Research Council (IRC). "There are so many different factors involved."
Walkenhorst goes on to explain that there are two broad types of windshield damage: One type occurs when an object strikes the glass - like a rock or another vehicle. This category accounts for about 65 percent of all windshield claims. The other type of damage occurs when the glass is struck by the vehicle itself due to some kind of mechanical issue.
"One thing that causes insurers to raise their rates is if they see a trend of claims that are increasing, especially for certain vehicles," Walkenhorst says. That's why oftentimes you'll see insurance companies asking drivers with trucks or SUVs, in particular, to pay more for premiums than those who drive cars with less risk of sustaining severe damage in an accident. "That helps correct what they might be seeing as increased risk."
Another common reason why premiums might go up is simply that the policyholder filed too many windshield claims in a short amount of time, she continues. If you've just bought insurance and filed one claim right after the other, your insurer may flag you as a higher risk than someone who has filed only one claim.
This is less likely to happen if you've had time in between windshield claims; but even then, there are still factors that can affect how much insurance premiums increase. One major factor is the deductible policyholders choose when they purchase their premiums. "When you have a high deductible, there's no question it will probably save you money on your premiums," says Walkenhorst. "But whether or not filing a claim with your insurance company will raise your rates depends upon what type of coverage and deductible level drivers choose."
Many consumers make the mistake of believing that filing a windshield claim won't affect their rate because most companies offer collision coverage, which is separate from windshield coverage, she adds. In some states, auto insurers are allowed to consider both collision and comprehensive insurance as one claim if they're filed on the same day.
In some cases, drivers might not see a rate increase at all after filing a glass claim. This depends largely on where you live. Some states have laws that prohibit insurers from hiking up rates for a single glass claim within a given time frame - usually three years, Walkenhorst explains. But even in these states, there's no guarantee that filing multiple claims will have no effect on your next premium renewal.
If you file too many claims in a certain period of time, some companies may refuse to renew your policy," she says.
Comprehensive insurance claims (i.e., damage that occurs to the car because something happened other than an accident or natural disaster) can also increase premiums, but not always. If another driver is at fault for causing damage to your vehicle, their insurer will likely pay for repairs and adjust rates accordingly for both parties involved, Walkenhorst continues. "But if it's simply due to the weather or something else out of your control, filing a claim won't necessarily affect both parties' rates."
Generally speaking, there are no federal laws governing auto insurance rate increases following glass claims - only state statutes on the books, she says. In a handful of states, filing a claim doesn't necessarily mean automatic premium hikes at renewal time, but in many other places, doing so can affect how much you pay for insurance going forward.
The bottom line is the more claims you file, the higher your premiums are likely to be. But whether or not filing a claim will actually affect your rate depends upon what type of insurance coverage you have and where you live."
Insurance companies have a right to increase your premium if you file too many claims as they consider it as a risk factor. In some states, however, insurance companies are barred from increasing rates for a single claim within a time frame which can vary from 3 years. As for filing comprehensive claims vs windshield-only claims, the former will not necessarily affect both parties' premiums while the latter might possibly increase premiums of other drivers involved.
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