Consequences of Auto Insurance Claims

Filing accident claims can result in consequences with your insurance company.  Though some companies say that you can have one claim without consequences, you should know that there are consequences for every claim filed with an insurance company.  Consequences may vary depending on the insurance company.

• Your premium may increase as the accident claim can cause your rates to change.


• Your insurance company may cancel your policy. If the underwriting team sees you as a risk, your policy will be cancelled.


• You may not have any consequences for the first accident or the first ticket; however, your consequences will double when you have the second accident or ticket.


• You may be required to pay the deductible on your policy.


• Your insurance will only cover the accident costs up to the maximum coverage on your policy.  For instance, if you only have $25,000 of coverage on your policy, but your accident caused $50,000 in damage, you will be required to pay the additional $25,000.


• An adjuster will have to come inspect the vehicle to confirm the damage reported and ensure the vehicle is worth the cost of repairs.


• You may be required to apply for at-risk insurance.


• You will have to contact your insurance company at tell what happened.


• You will have to make arrangements to have your vehicle repaired. This can take a few days depending on the damage.