Here’s how your past claims will affect your auto insurance rates.
Among the many factors that affect your auto insurance rates, your past claims history is one of the most heavily weighted considerations. But why exactly do auto insurance providers care so much about the claims that you’ve filed in the past? Here’s what you need to know about your claims history and your insurance premiums.
How do claims affect my auto insurance rates?
Auto insurers use your claims history to determine if you are a high or low-risk driver. If you have a track record of making a lot of claims, then insurers will consider you riskier to insure. As always, the higher-risk you are, the higher your insurance rates will be. On a positive note, if you are a safe driver, then your auto insurance rates will be on the lower side.
How does my insurer know about my past claims?
Auto insurers will track claims from different carries with a CLUE (“Comprehensive Loss Underwriting Exchange”) report. CLUE is a database that all insurers use to track and review your claims history. All insurers file monthly reports to the database regarding their clients’ claims status. These reports remain in the system for 7 years before they are deleted. Before offering you coverage, all auto insurers will check your CLUE report to determine how high-risk you are.
Do comprehensive claims raise my rates too?
It’s important to note that comprehensive damage claims will not affect your auto insurance premiums. Because comprehensive claims are a result of things outside of your control, such as fire, storm damage, theft, and so on, insurers will not hold these claims against you. It is only the claims for actual at-fault auto accidents that will affect your rates.
This is why your claims history matters to your auto insurance. Do you have further questions regarding your car coverage? If so, then contact the experts at Weeks & Associates Insurance Services in Thousand Oaks, California. Our dedicated team is eager to assist you with all your insurance needs today.