Many people have heard horror stories about their auto insurance policies getting canceled or their premiums being increased to insanely high amounts after filing a claim.  But, is there really a need for you to be concerned about terrible things happening to you if you file a claim, or is this simply a myth that leads to a whole lot of unnecessary worry? 

Changes to Your Premiums

Depending upon the type of claim you file with your insurance company, it is possible that your premiums will be increased.  If your vehicle is damaged because you ran into an animal or if you are in an accident that is not your fault, your insurance premiums should not go up.  If you are involved in an accident that is considered to be your fault, on the other hand, you may see an increase your insurance premiums.  This is because research has shown that you are more likely to be involved in an accident in the future if you have been involved in one in the past.  This puts you in a “higher risk” category that results in a higher insurance rate.

The amount your premiums increase will vary from one insurance company to the next.  Some will automatically increase your rates by a certain percentage, while others will use a math formula to help them determine your rate increase.  Therefore, if your rates are increased after filing a claim, it is a good idea for you to do some comparison shopping with other insurance companies.

Getting Your Policy Canceled

The risk of getting your auto insurance policy canceled after filing a claim is actually far less than most people think.  While it is certainly possible that your insurance company will cancel your policy if you file several claims within a short period time or if you file a particularly large claim, most people do not need to be concerned about a cancellation when filing an auto insurance claim.  If you have ran into a streak of bad luck and you are worried about your auto insurance policy getting cancelled, you should consider whether or not the payout you will receive from your claim is worth the risk.  For example, if you have $1,500 in damages and your deductible is $1,000, receiving the $500 benefit may not be worth the risk of losing your policy or being faced with a rate increase.