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How Claims Affect Your Car Insurance Premium

How Prior Claims May Affect Your Automobile Insurance Needs

How many times have you said to yourself you should learn from your mistakes? Learning from previous car insurance claims is no different. Insurance claims are caused for an assortment of reasons: some accidents you have no control over, others you may have been able to prevent. 

For example, you can’t control a deer darting in front of your automobile, but certainly you can make smart decisions about where to park your car or whether to get behind the wheel after a few cocktails. 

There are two main things to consider about previous claims affecting your insurance. First, think about how prior claims affect your car insurance premium.  Second, keep in mind an uncovered claim you may have experienced in the past because you hadn’t purchased the endorsement necessary to cover the loss. 


Do Claims Increase the Price of Insurance?

Absolutely.  If you are claims free, you are entitled to a discount with most carriers on your auto insurance.  Once claims or tickets are on your record, the discount disappears, and you will be surcharged based on the incident, causing steep increases in your car insurance premium. 

 

 How Does a DUI or DWI Conviction Affect Car Insurance?

Obviously, either DUI (driving under the influence) or DWI (driving while intoxicated) will significantly affect your premiums and may result in insurance being cancelled. Several carriers will not write you, or may decline to sell optional coverage’s such as collision or comp if there is a history of DUI.  The state Bureau of Motor Vehicles may require special filings for you to retain a valid driver’s license, which are not offered by all carriers. 

 

 

What is a Merit Rating Plan?

Under competitive market system, companies are free to create their own rules – known as Merit Rating Plans – to determine how your driving record will affect your premium.  These plans may lower your premium based on years of incident free driving, or raise your premium based on at-fault accidents and traffic violations. 

 

What is MAIP?

MAIP is the Massachusetts Automobile Insurance Plan. MAIP is a system by which eligible risks who are unable to obtain coverage in the voluntary market are assigned to Member Companies for the purpose of obtaining private passenger automobile insurance.  People are assigned for various reasons, typically for poor payment history or multiple claims.  

 

 

Deep Associates Insurance Agency Can Help

As your independent insurance agent, we are here to help you when you have a claim. We are here to help you make the best decisions and to work with you to get your claim settled as quickly as possible. Call us at 413-664-1053.