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Comprehensive Car Insurance Claims Are Driving Up Automobile Insurance Rates

Comprehensive insurance is a type of cover that is found in many car insurance programs and offered by insurers. Normally, it is an addition to the basic coverage of liability and most states consider comprehensive coverage to be optional.

Every state have insurance laws that car owners have to be required to have the state minimum coverage and the drivers are indemnified against a third party responsibility. The states do not have a requirement for car owners to have comprehensive coverage.

A car insurance claim made against a liability policy will pay only for losses suffered by the other driver. Optional coverage like full coverage and collision are required if a policy holder is to get claim payments for insurance companies to offset their losses.

Every insurer is going gauge the amount of risk to insure a driver and in a situation where neither party in an accident has comprehensive coverage and one or both make a claim it never ends in good news.

When an insurance company have to pay out money for claims this means the insurance company is paying our of the company profits. While insurance firms expect to pay out a specific amount in claims each year, each policy owner making a claim against them is known as a greater risk than people who have never filed a claim.

Due to the serious risk factor, those with a negative claims history can expect to pay higher premiums as a consequence. Even worse, after a car owner with cheap car insurance makes too many claims against an insurance company the owner may be dropped from the insurance program.

When figuring car insurance quotes, underwriters allow for an entire history of statistics information and one is based on the amount of claims that have been paid out. The underwriters to try to project the chance of insuring a new customer.

Among these are the age, make, and model of the car to be covered. Age and sex of the driver, and also their driving history, including any vehicle insurance claims made against prior insurance companies.

If a new customer is asking for an car insurance quote and the driver is discovered to have made past claims they are viewed as a serious risk. This will result in a higher car insurance quote and higher premiums for the new customer.

Comprehensive car insurance is the part of a policy that covers loss to the insured automobile in some form apart from a crash whether it is “at-fault” or not. This may include burglary, vandalism, fire, and acts of nature like floods or storms.

While the acts are out of control of the vehicle owner they are not considered collisions and may not show up on a police report as an accident. However, if an auto insurance claim is filed the claims become part of the driver history of filing claims.

For minor damage inflicted, many vehicle owner will not file a claim against their automobile insurance company since the amount of repairs to the vehicle are less than the deductible which is what the vehicle owner is going to pay anyway.

If the car owner has a high deductible then this will save them for a premium raise and what is not filed cannot be found out and will help them get lower car insurance quotes.

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Greg Fowler

Greg Fowler

Managing Member of AutoInsureSavings LLC, Greg enjoys writing articles to help drivers save on anything related to automobiles. Travel and enjoying the outdoors are some of his hobbies. The best way to reach him is at his Twitter or Facebook Profile.

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