Frequently Asked Questions
How long do insurance claims affect my premium?
Auto claims typically impact premiums for 3-5 years; home claims for 5-7 years. CLUE (Comprehensive Loss Underwriting Exchange) reports retain claims for 7 years and are used by most insurers when underwriting new policies.
How much does one claim raise premiums?
Auto: at-fault accident +43% on average; comprehensive (theft, hail) claim +3-10%. Home: liability claim +20%; water damage +20-25%; two claims in 5 years can trigger non-renewal. The III warns that filing patterns matter more than single claims.
Should I check my CLUE report?
Yes - request your free annual CLUE report at LexisNexis. Errors are common and can cost you thousands in higher premiums or denied applications. The Fair Credit Reporting Act gives you the right to dispute inaccuracies.
What is the CLUE report?
It is the Comprehensive Loss Underwriting Exchange, a centralized database of the last 7 years of auto and home claims. Every insurer checks it when quoting. You can request your report free once a year from LexisNexis.
Do not-at-fault claims raise my premium too?
In theory they should not, but in practice some insurers modestly raise premiums for drivers with any recent claim, treating them as statistically riskier. Weather claims (hail, wind) and comprehensive claims usually carry no surcharge.
How do I decide whether to pay out of pocket or file a claim?
Compare the recoverable amount (claim minus deductible) against the total projected surcharge. If you recover $400 but the surcharge will add $900 over 3 years, pay out of pocket. Rough rule: if the recoverable amount is less than 2-3 years of expected surcharge, don't file.
What is accident forgiveness and how does it work?
It is a provision that prevents your first at-fault loss from triggering a premium surcharge. Some insurers include it automatically after several claims-free years; others sell it as an add-on. Ask whether your policy already has it before paying out of pocket.
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This calculator provides estimates based on general assumptions. Actual insurance costs and coverage vary by insurer, location, and individual risk factors. Not a quote or binding offer. Contact insurance providers directly for accurate quotes and coverage options.