Study sheds light on just how much auto insurance premiums spike after a claim

[Insurance Forums Staff]

Insurance Forums Staff submitted a new article

Study sheds light on just how much auto insurance premiums spike after a claim

State-by-state analysis shows that claim-induced premium spikes remain high, but percentage-wise don’t jump by as much as last year.

Continue reading the Original Article.

 

[InsCommentary]

I have serious reservations about the accuracy of this. Premium should reflect FUTURE loss expectations. It is not intended as a way to recoup past losses. Any increase should depend on the likelihood that the insured will experience an increase in loss frequency or severity during the upcoming policy period. An increase of the magnitudes reported above for a single loss appear remarkably higher than my understanding of the marketplace. The article effectively encourages people to not report accidents in order to prevent premium increases.

 

[Justin Bilyj]

It should be illegal for ANY insurance company to single out a policy holder let alone a claimant for a rate increase that doesn't apply to a class of policyholders...