Do Car Insurance Claims Have a Negative Impact?
Car insurance payments make up a big part of car ownership costs. It is, therefore, no surprise that most drivers would go out of their way to cut down on their premium payments. Certain claims may have a negative impact on your driving record.
All insurance providers will take a look at your driving record among other things before determining your premium rates. If you have a bad record, you may end up paying more than you need to. Pay attention to your record just as much as your insurance provider will. The following claims may affect your driving record.
Top 10 Most Common Claims that Can Affect Your Driving Record
1. Property Liability Claim
If you make a claim for property liability coverage, it may have a negative impact on your record. Your accident stays on your record for about three years depending on your insurance company and where you live. If you have been in just one incident, your insurance company may reward you with Accident Forgiveness. In that case, your premium payments may stay the same.
2. Bodily Injury Claim
Making a claim for bodily injury liability may have an impact on your driving record. Being involved in multiple accidents may have a big impact on your record. In case of bodily injury claims, your insurance provider may increase your premium payments depending on your age and previous records. If, for example, you are a twenty-year-old with previous records of over speeding and causing bodily harm, your premium payments may increase more than a 50-year-old with no previous record of injuring others in an accident.
3. Claims for Comprehensive Coverage
Comprehensive coverage covers you from common risks such as vandalism, damage by weather elements, and fires. If you make a claim for comprehensive coverage, it may have an impact on your driving record. The accident could affect your premium payments for up to five years. If you get a speeding ticket during the accident, it may stay on your driving record for up to three years.
4. Claims for Collision
Collision coverage provides you with compensation in case your car gets into a collision accident. It helps you cover the costs of repair or replacement if your car collides with another vehicle, tree, or posts. The coverage option covers you even when you are at fault. Making a claim for this coverage option may have an impact on your driving accident. Consider paying out of pocket if you are in a minor collision. It will protect your driving record to keep your premium payments from going up.
5. Uninsured/Underinsured Motorists Bodily Coverage
You can make a claim for this coverage option if you get into an accident where the at-fault driver has insufficient insurance. Unfortunately, your driving record may be affected even in accidents where you were not at fault depending on where you live. It may seem unfair but most states prefer to preserve that data for statistical reasons.
6. Uninsured/Underinsured Motorists Property Damage
You can make a claim for this coverage if you get into an accident with a motorist who does not have enough insurance to compensate you. The coverage helps you to pay for the cost of repairing or replacing your car. Making this claim may affect your driving record depending on where you live. Most states keep records of all your accidents including those that were not your fault.
7. Medical Payments
This coverage option helps you cover the costs of medical and funeral expenses in case of an accident. It may cover the passengers in your car and your family members. If you file a claim for this coverage option, you receive compensation regardless of who was at fault. It also covers you if you are a passenger in another vehicle. Filing for this coverage option will reflect on your driving record.
8. Roadside Assistance
This coverage option helps you pay for towing services in case your car breaks down on the road. Filing for the claim is likely to reflect on your driving page regardless of the reason for its damage. The coverage helps you tow your car to a repair shop.
9. Rental Car Reimbursement
This coverage option helps you pay the rental fees of a car while yours is in a body shop. It compensates you only if your car is damaged due to covered accidents. Filing for this claim will impact your driving record regardless of whether you were at fault or not.
10. Custom Parts and Equivalent Value
This coverage option helps you cover the cost of repairing or replacing items that you add to your car including custom wheels or a paint job. The parts may be damaged due to an accident whether or not it was your fault. Filing this claim is likely to be reflected on your driving record. It may increase your premium payments.
Fortunately, it is possible to improve your driving record after it has been injured. Some things you may do include; paying out of pocket instead of filing a claim, taking a driver safety course, and contesting questionable tickets.
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