Will My Car Insurance Rates Go Up If I File A Claim For Hail Damage?

Car insurance rates in Colorado are on the rise. A major reason for this is the high number of claims filed for weather-related damage, including hail. This has led many drivers to question whether their rates will inevitably increase if they file a claim for hail damage. We get this question a lot at our agency, 3R Insurance.

Who can provide a reliable answer to this question? Your insurance agent. Auto repair shops may not have the intricate knowledge of insurance policies, and in many states, including Colorado, auto mechanics are not permitted to interpret your insurance policy for you.

To help answer this question for you, we've consulted a local expert: our very own agent from 3R Insurance in Westminster, Colorado.

Can Your Car Insurance Rates Go Up After A Hail Claim?

Insurance companies compensate a significant number of claims related to storm damage. Therefore, your rates might increase each year even if there hasn't been a severe storm in your area. Remember, insurance works by pooling resources; your money helps insure other people across the country. When insurance companies experience significant losses, they recoup the money by increasing their clients' rates. Consider the numerous large storms occurring annually across the U.S. - you're helping to insure those drivers, just like they're helping to insure you.

So, will your rates go up if you file a claim for hail damage?

The straightforward answer is, "Most likely." An insurance company can decide to raise the rates on car owners after hail damage. However, whether or not you file a claim, your premiums may still increase if your insurance company has sustained substantial financial losses during your policy period due to storm damage.

Have You Been Told That Hail Claims Won't Affect Your Rates?

There's a common misconception that car insurance claims, unlike home insurance claims, do not affect your premium rates. If your car was damaged after a hailstorm, it's considered an "act of God," and, in theory, it doesn't impact your premiums. The question arises, though: why are homes treated differently when damaged by the same hail? It's complicated.

Will Having Claims On My Record Raise Any Red Flags If I Want To Shop Around For Cheaper Insurance?

If you've made several claims, typically over a five-year period, that might be a red flag to insurance companies. Therefore, your ability to get better rates from other companies could be impacted. However, every company has its specific rating system, so the effect might vary. Some companies might be lenient considering the unexpected nature of the event.

It's important to know that you have an insurance report, similar to a credit report. If you've filed a claim for hail damage in the past, potential insurers could see this through a CLU report, and it may still affect your current premiums, even if you've since switched cars or insurance providers.

What Is A Claim Without Pay, And Does That Affect My Rate?

A "claim without pay," or a "zero-pay claim," is a claim on your record that was denied or for which no benefit or payment was issued. These claims can significantly affect your eligibility and rates. One common mistake drivers make after a storm is to contact their insurance company's claims department before consulting with their local insurance agent. The moment you ask the claims department to send someone to "check" your car, you've filed a claim. It's often better to have your car inspected by a professional before contacting your insurance company. Most insurance agents have enough experience to recommend a qualified mechanic to inspect your vehicle before filing a claim.

At 3R Insurance, we have handled thousands of car insurance claims in Westminster and the surrounding counties.

As a locally owned business, we commit our full attention to each claim, ensuring that you receive the excellent service you deserve. Contact us today for more information about our car insurance solutions.