How Your Prior Insurance Claims Impact Your Car Insurance Rates

How your claims history affects your auto insurance rates.

When an auto insurance provider is considering issuing you a policy and determining your premiums, they take into account various factors. One of the things they examine is your claims history. But what exactly do car insurance providers look for when reviewing your previous claims, and how does this help them calculate your premiums? Read on to understand how your claims history influences your auto insurance rates.

Past Claims and Today’s Rates

Auto insurers use your claims history to determine whether you are a high-risk or low-risk driver. If you have a track record of filing many claims, insurers will consider you more risky to insure. As always, the higher the risk you pose, the higher your insurance rates will be. On the other hand, if you are a safe driver, your auto insurance rates will be on the lower side.

Not All Claims Will Increase Your Rates

It’s important to note that comprehensive damage claims will not impact your auto insurance premiums. Since comprehensive claims result from events beyond your control, such as fires, storm damage, theft, etc., insurers won’t hold these claims against you. Only at-fault car accident claims will affect your rates.

How Insurance Companies Access Your Claims History

Auto insurers track claims information through a Comprehensive Loss Underwriting Exchange (CLUE) report. CLUE is a database that all insurers use to monitor and assess their clients’ claims history. Insurers submit monthly reports to the database regarding the status of their customers’ claims. These reports remain in the system for several years before being deleted. Before providing you with coverage, all auto insurers will review your CLUE report to determine your level of risk.

This is how your claims history influences your auto insurance rates. If you have further questions regarding your coverage, contact the experts at Mike Leonard Insurance Agency for assistance. Our dedicated team is eager to find you the right coverage from one of our many carriers, including Kemper, MetLife, Nationwide, Travelers, The Hartford, Safeco Insurance, Progressive, and American Strategic Insurance.