Car Insurance Costs Soar 44% After One Claim and Almost Double After Two, but Vary Widely by State
California Has Largest Post-Claim Increase, and Maryland Has Smallest
SAN FRANCISCO (Feb. 22, 2016) – Drivers pay an average of 44% more for car insurance after making a single claim over $2,000, according to the 3rd annual study by insuranceQuotes. The national average jumped three percentage points for two years in a row, compared with the 38% increase found in 2014 and 41% increase in 2015.
California tops the list of states, where just one claim leads to an average premium hike of 78%. The next most expensive states are Massachusetts (+67%) and Wisconsin (+54%). The lowest increases are seen in Maryland (+22%), followed by Michigan (+24%) and Oklahoma (+25%).
Making a second claim proves to be very costly: A driver with two claims within a year pays almost double for car insurance (+98%) than a claim-free driver.
“Previous claims are a big factor in car insurance rates and can affect the amount you pay for years,” said Laura Adams, senior analyst at insuranceQuotes. “If you get a rate hike for making a small claim, it could end up hurting your finances over the long run. In some cases, not making a claim can be a smarter move.”
In addition to where you live, the type of claim is also important. Bodily injury and property damage (including collision) claims over $2,000 are the most expensive (+48% and +44%, respectively). Comprehensive claims (for non-collision events such as theft) are the cheapest, barely moving the needle at +2%.
About the study
insuranceQuotes.com commissioned Quadrant Information Services to examine how claims affect car insurance premiums. Quadrant calculated rates using data from the largest carriers in all 50 states and the District of Columbia. Assumptions included a $2,000 claim and policy limits of $100,000 for injury liability for one person, $300,000 for all injuries and a $500 deductible on collision and comprehensive coverage. Averages are based on a 45-year-old married, female driver who drives a 2013 sedan and has never filed a claim.
insuranceQuotes provides consumers with a free, easy way to shop for and compare insurance quotes online, and delivers information about auto, home, health, life and business insurance.