Will My Insurance Go Up If I File a Claim?

WV & OH ONLY

"I backed into a post and tore up my bumper. If I call my insurance company to ask about it, will my rate go up?"

It shouldn't feel risky to use the insurance you've been paying for. I get it.

Your insurance can go up after a claim, depending on what kind of claim it is, who was at fault, your history and which company you're with. A plain question about your coverage generally isn't supposed to be reported as a claim, but talking about an actual loss can be treated as one. So before you call, be clear about which one you're doing.

You shouldn't have to think twice about this. We want you on the best rate, before a claim and after one.

Every company treats claims differently, and the one that's right for you before a claim may not be the right one after. If a claim does raise your price, we can shop 13 companies and see who's kindest about it.

This is the part where I ask you to call. Tell me up front that it's a what-if question and I'll walk through your deductible with you.

WV & OH ONLY

Here's the most careful answer I can give you. It generally shouldn't, but I can't promise you it never does.

• The Connecticut Insurance Department says insurers have been told not to report inquiries about possible coverage. It also says that if you discuss an actual loss with your insurer or agent, it may be treated as a claim.
• The Washington insurance commissioner says LexisNexis advises insurers not to report calls that only ask about coverage or deductibles.

Those are other states' regulators. I didn't find a West Virginia or Ohio rule that answers this directly. The line they draw is the useful part: a question about your policy is different from telling the company that something happened.

If you've got a real loss and you only want to ask a question, start the call by saying, "I'm not filing a claim. I have a question about my coverage."

It can still show up. Connecticut says a loss that was reported as a claim and then denied can be reported to the CLUE database. Texas goes further and bars insurers from charging more for claims they denied or for calling with questions. That's Texas law, though. I wouldn't count on it here.

Every company draws its own lines. Generally, an at-fault accident is treated more seriously than something like glass, a deer or a storm. Two small claims can matter more than one big one. Some companies also take away a claim-free discount after a claim, and Texas mentions that risk too.

West Virginia's insurance commissioner defines a surcharge as an additional charge allowed when a company pays a claim on your behalf. So yes, it's a real thing. How much, and for how long, depends on the company.

Do some plain math on the back of an envelope:

1. Get an estimate for the repair.

2. Subtract your deductible. That's the most the insurance company would pay.

3. Think about what's left compared with what a higher bill could cost you over the next few renewals.

If the repair is barely over your deductible, filing may not make sense. If it's thousands of dollars, that's what you've been paying premiums for. And never sit on anything involving an injury or another person's property. That's not a do-it-yourself situation, and your policy has duties about reporting. Read those first. Here are some tips for filing a claim if you go ahead.

West Virginia limits this. For a policy that's been in place two years or more, West Virginia Code 33-6A-4 lists the reasons a company can use not to renew, and the accident grounds in it are tied to at-fault accidents. A company can instead choose a different method that uses its own underwriting standards, within limits on how many policies it can non-renew. Either way, you're owed notice with the specific reasons.

If a consumer report was part of it, you should get a notice. The FTC's guidance for insurers covers increases on existing coverage too. Keep the letter.

Then the question changes to who'll treat you best now. It's filed. Don't feel bad about using what you paid for.

Not sure whether to file? Call me first, and tell me it's a what-if. If a claim has already raised your rate, let's see who'll treat you better.

WV & OH ONLY

Next in the series: Part 29, How Long Does a Ticket or Accident Follow Me?