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claim report

Most everyone will agree that vehicle insurance is a wonderful and necessary commodity. In fact, throughout Canada basic insurance is mandatory. One of the concerns that often arise with vehicle insurance is when it comes to having to put in a claim. The prevailing thought is that once a claim is submitted insurance premiums will go up.

How much Does Insurance Go Up If You Make a Claim?

how much

Submitting a claim with the insurance company doesn’t mean an automatic increase in premiums. There are many factors taken into account when it comes to an insurance claim. It also depends on the type of claim and the type of insurance an individual has.

Minor claims are not going to be as dangerous in nature as what major claims are. For example, an accident claim is considered to be a serious nature. Whereas vandalism may not go into the same category. Especially if the claim is minor and only appears to be a one-time event. But it will depend on the insurance company how they perceive claims. Every insurance company is different.

Accident Claims

When it comes to a claim for an accident the premium rates should not go up.  That is only applicable if the driver is  100% not at fault. For drivers that are at fault or even partially at fault then the claim is going to affect the premiums. How much will again, depend on the specifics of the accident.

Keep in mind that each insurance company will handle their claims in a different manner.  Some insurance companies offer forgiveness of a first accident. They may do this even if the driver is at fault. In that case, the claim would not affect the premiums.

Something else that is taken into account is the driver history. Many times the drivers can go for many years without any claims or incidents. Some insurance companies will look at this.  If the period has been for six or more years, they may consider not raising the premiums.

Insurance companies have rules and regulations they must follow. In Ontario, there were some changes made in the last few years. These were significant when it comes to accident claims and premium increases. The new law stipulated that insurance companies could not increase premiums. If the issue was a minor at-fault accident. To understand this one needs to know what a minor fault accident is.

Minor Fault Accident

In Ontario, a minor fault accident is when no injuries are present. Also, there has been no insurance claim paid out. Plus the damage was less than $2,000 for each car. In this case, the driver at fault would have paid for the damages to both vehicles. The insurance company may become aware of this accident. They cannot take it into account when setting the premiums.

How Long After a Car Accident Does It Affect Your Insurance?


The length of time that an accident will affect your insurance is going to vary. It will depend on the insurance company that you are buying your insurance from. Also, it will depend on the severity of the accident itself which will dictate the amount of the claim. Some insurance companies will look no further back than six years. Others will look back as far as ten years. These are things that you want to consider. Things to think about when you are buying new insurance if you have had an accident claim in the past.

Do Insurance Rates Go Up After a Comprehensive Claim?

It isn’t just car accidents that create insurance claims. Quite often there are claims made under the comprehensive segment of the insurance. These are that type of claims that encompass those outside of collisions. For example a theft or vandalism.

Insured individuals are often concerned about the comprehensive insurance. Their concerns are about whether a claim is going to cause an increase in their premiums. Most often under the comprehension section of the insurance, there are deductibles. Insurance companies take into account the different factors.  They do this when setting the premiums.

Plus, they do the same with this segment of the insurance. Also, they will take a look at the risk involved. It is in regards to a theft or vandalism for the individual they are going to insure. Part of the equation will be for the neighbourhood where they will be. Stats sometimes show that there are several occurrences of risk or vandalism taking place. These could pertain to the neighbourhood of the driver.  It affects the premiums. If an individual has just one claim in most cases this will not affect the premiums.  There could be several claims like this issued to the Insurance Company. It so it could increase the premiums.

Should an Insured Submit a Claim?


Another big question that arises is whether an individual should submit a claim. Even if it appears to be a minor incident. Some feel that it is better not to so that it will not have any bearing on the premiums. Others feel that they need to be upfront and honest with their insurance company. In most cases, the insurance company should be aware that a claim is possible. Even for those that are not going to be making a claim. Insurance companies do their homework.

They have many different ways to find out what is taking place with their clients. By informing the insurance company about an incident, it is forthcoming. It also allows the insured to ask any questions about this. It is better to find out at the time rather than later. One may see an increase in their premiums even though they didn’t make a claim.  Discussing the incident with the insurance company is a wise thing to do. That way the insured knows precisely what is going to take place. If they are not happy with this, there are steps that they can take to challenge this. Understanding how claims work is beneficial for those who have vehicle insurance.

About the Author: Ashley Miller

Ashley is an insurance content professional and very knowledgeable on all related subjects. Ashley has over 12 years of insurance content writing experience working with various insurance companies throughout her career.