How Insurance Companies Treat Your Claim
Whether your premiums rise after a personal injury claim depends on what type of insurance you filed under and who was found at fault. If you filed a claim on someone else's liability insurance — meaning you were injured by their negligence and claimed against their policy — your own insurance rates typically do not change. The claim sits on their record, not yours.
If you filed a claim on your own insurance policy — such as your auto insurance after an accident where you were partially or fully at fault, or your homeowners insurance after a covered loss — insurers often treat this as a signal of increased risk. They may raise your premiums, drop you, or decline to renew your policy when it expires. The exact outcome varies by insurer, state, and the nature of the claim.
Some states have laws that limit how much insurers can raise rates after a single claim, or that prevent rate increases for claims where you were not at fault. Other states allow insurers broad discretion. The difference between states can be substantial.
Key Takeaways
- Claims filed against someone else's liability insurance do not affect your own premiums because the claim is recorded on their policy, not yours.
- Claims filed on your own insurance may trigger a rate increase, non-renewal, or cancellation, though state law sometimes limits how much insurers can raise rates.
- Insurers view claims as evidence of risk, even if the claim was small or you were not at fault, and they use claims history as one factor in setting premiums.
- Shopping for new insurance after a claim can sometimes yield better rates than staying with your current insurer, since different companies weigh claims history differently.
- Some insurers offer accident forgiveness or claim-free discounts that can offset or prevent rate increases if you meet their conditions.
When You File Against Your Own Insurance
If you have auto insurance and you cause an accident, or you have homeowners insurance and file a claim for a covered loss, the claim goes on your record. Insurers use this information when they renew your policy or when you shop for coverage elsewhere. A single claim can raise your premiums by 10 to 40 percent depending on the type of claim, your location, and your insurer's underwriting practices — but these are ranges, not guarantees, and actual increases vary widely.
The insurer's reasoning is straightforward: a person who has filed a claim is statistically more likely to file another one than a person with no claims history. From their perspective, you represent higher risk. This is true even if the claim was small, even if it was your first claim in years, and even if you were not at fault.
Some insurers are more forgiving than others. A few offer accident forgiveness programs that waive the rate increase after your first at-fault accident if you meet certain conditions — usually that you have been claim-free for a set number of years before the accident. Others offer discounts for going a certain period without a claim. These programs vary in their terms and availability, and not all insurers offer them.
State Laws That Limit Rate Increases
Many states have enacted laws that prevent insurers from raising rates after a claim where the policyholder was not at fault. These laws vary significantly in scope. Some states prohibit rate increases only for not-at-fault auto accidents. Others extend protection to at-fault accidents as well, or cap how much the rate can increase. A few states have no such protections.
If you live in a state with a not-at-fault protection law and you file a claim where you were not responsible for the accident, your insurer generally cannot raise your rates based on that claim alone. However, the insurer can still raise rates for other reasons — such as a change in your driving record, a move to a riskier area, or a general rate increase that applies to all customers in your category.
You can find your state's rules by contacting your state insurance commissioner's office or by searching your state's insurance department website. The rules are specific to your state and can change, so it is worth checking directly rather than relying on general information.
Claims Filed Against Someone Else's Insurance
When you are injured by someone else's negligence and you file a claim against their liability insurance, that claim is recorded on their policy and their claims history, not yours. Your own insurance company has no reason to raise your rates based on a claim you did not file on your own policy.
This is one reason why pursuing a settlement through the at-fault party's insurance can be preferable to filing on your own policy when you have a choice. You recover compensation without the risk of a premium increase on your own coverage. The trade-off is that the at-fault party's insurer may take longer to settle, may offer less than you think the claim is worth, or may dispute liability.
If you settle with the at-fault party's insurance and sign a release, you agree not to pursue further legal action against them. Make sure you understand what you are signing before you accept a settlement offer.
How to Minimize the Impact on Your Premiums
If you know a claim will likely raise your rates, you have several options. First, shop for new insurance before your current insurer renews your policy. Different insurers weigh claims history differently, and you may find better rates elsewhere. Some insurers specialize in customers with claims history and price accordingly. Getting quotes from at least three insurers is standard practice.
Second, ask your current insurer about discounts you may may have access to for. Bundling policies, maintaining good credit, completing a defensive driving course, or installing safety features in your vehicle can lower your premium. These discounts sometimes offset a claims-related increase.
Third, if your state has accident forgiveness or similar programs, ask whether you may have access to. Some programs require you to opt in or to meet specific conditions. You will not benefit from a program you do not know exists.
Fourth, if you believe the rate increase is excessive or violates your state's laws, contact your state insurance commissioner's office. They can investigate complaints and sometimes order insurers to adjust rates or refund overcharges. This is a free service and does not require a lawyer.
How Long a Claim Affects Your Rates
Most insurers look back three to five years when they assess your claims history, though this varies by insurer and state. A claim from seven years ago typically has little or no effect on your current premiums. However, multiple claims within a short period can have a cumulative effect and may lead an insurer to decline to renew your policy.
The impact of a single claim usually diminishes over time. Your premium may be elevated for the first year or two after the claim, then gradually return to normal as the claim ages and you accumulate additional claim-free years. Some insurers offer explicit rewards for going a certain number of years without a claim.
If you are shopping for insurance and you have a claim in your history, disclose it. Insurers will find it anyway through the Comprehensive Loss Underwriting Exchange (CLUE) database, which tracks homeowners claims, or the Motor Vehicle Report (MVR), which tracks auto claims. Failing to disclose a known claim can give the insurer grounds to cancel your policy later.
Frequently Asked Questions
Will my health insurance premiums go up if I file a personal injury claim?
No. Health insurance premiums are regulated separately and cannot be raised based on a personal injury claim you file. However, if you file a claim through your health insurance for treatment related to an injury, that claim is part of your health history and may affect future coverage or premiums in limited ways depending on your plan type and state law. This is different from filing a personal injury lawsuit or settlement claim.
What if the insurance company says the accident was my fault but I disagree?
You can dispute the fault information. Ask the insurer to explain their reasoning in writing. If you believe they are wrong, you can file a complaint with your state insurance commissioner. You can also pursue a claim against the other party's insurance if you believe they were at fault. Disputing fault does not prevent a rate increase, but it may affect whether you may have access to for not-at-fault protections under your state's law.
Can an insurance company cancel my policy because I filed one claim?
Most states require insurers to give you notice and an opportunity to correct the problem before they cancel, but a single claim is usually not grounds for when ready cancellation. However, insurers can decline to renew your policy when it expires. If your insurer declines renewal, you can shop for coverage elsewhere. Some insurers specialize in higher-risk customers and may offer you a policy at a higher rate.
Does filing a claim affect my credit score?
Filing an insurance claim itself does not affect your credit score. However, if the claim leads to a dispute with the insurer and the insurer reports the debt to a collection agency, that could appear on your credit report. This is rare for standard insurance claims but can happen in disputes over coverage or payment.
If I settle a personal injury case, will my insurance rates go up?
Only if you filed the claim on your own insurance policy. If you settled through the at-fault party's insurance or through a lawsuit against them, your own insurance rates should not be affected. The settlement itself does not trigger a rate increase — only claims filed on your own policy do.