Best Auto Insurance Companies That Don’t Raise Your Rate Because of Claims (2021)

Drivers that file multiple claims may be considered a higher risk to insure, and high-risk insurance costs 25% to 125% more than average. The best auto insurance companies that don’t raise your rate because of claims as substantially as other providers are State Farm and USAA. However, unless you’re enrolled in an accident forgiveness program, affordable auto insurance companies that do raise your rate because of claims include American Family and Allstate.

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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Nov 18, 2021

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What You Should Know

  • The best auto insurance companies that don’t raise your rate because of claims are State Farm and USAA
  • Affordable auto insurance companies that do raise your rate because of claims include American Family and Allstate
  • Insurance providers may consider you high risk if you file multiple claims

If you file multiple claims, auto insurance providers may consider you to be high-risk. But the best auto insurance companies that don’t raise your rate because of claims as substantially as others include State Farm and USAA.

Knowing how claims affect your rates is a crucial part of understanding auto insurance. Keep reading to compare companies. Discover how to secure the best auto insurance for bad driving record customers.

After learning about auto insurance quotes from companies that don’t raise your rate because of claims, remember to enter your ZIP code into our free comparison tool above to receive quotes from the top providers near you.

What are the best auto insurance companies that don’t raise your rate because of claims?

Many drivers wonder, do auto insurance premiums go up after a claim?

The truth is, you can only receive auto insurance quotes from companies that do raise your rate because of claims. It’s both a standard and expected practice among all providers.

However, not all companies increase rates as substantially as others. Plus, it depends on the type of claim you’re filing and how many times you’ve filed in the past.

So, below, compare the average annual rate increase the top providers charge after a driver files an accident claim:

The top auto insurance company that doesn’t raise your rate because of claims is State Farm.

Available to every driver in all 50 states, State Farm increases rates by the smallest percentage after an accident claim is filed.

Plus, State Farm is active and typically underwrites competitively priced quotes in most ZIP codes.

Other affordable auto insurance companies that don’t raise your rate because of claims as substantially as other providers include USAA, Nationwide, and Travelers.

However, USAA is only available to military personnel and their families.

Also, prices from both Travelers and Nationwide are not always the most affordable option in all states.

Many different variables impact your auto insurance costs. These factors include your age, driving record, ZIP code, and more.

So if you buy auto insurance from companies that do raise your rate because of claims, then simply shop around and look for a new provider.

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How do claims affect auto insurance rates?

What factors can impact your premium after a claim? In reality, any claim you file that costs your insurance company money may lead to a rate hike. This is especially true when your policy is up for renewal.

So, technically, even State Farm is an auto insurance company that does raise your rate because of claims.

Below, see how much different types of insurance claims cost providers on average in 2020 according to data compiled by the Insurance Information Institute (III):

  • Bodily injury liability claim: $20,235
  • Property damage liability claim: $4,711
  • Collision claim: $3,588
  • Comprehensive claim: $1,995

Accidents and auto insurance premiums are intrinsically connected. Which driver is at fault also matters.

So if one of your claims is from an at-fault accident, then your rates will increase.

This includes a third party filing a claim through your liability insurance or filing your own claim against your collision policy.

Your driving record also matters. Even for good drivers, filing a claim may imply you’re not driving as safely as before. This can cause your provider to reevaluate your risk level.

However, it’s always best to report an accident. Otherwise, the process becomes far more complicated if the other party sues you in the future.

Second chance auto insurance doesn’t exist. However, some providers offer accident forgiveness programs. They will even remove one incident from your record if you’re a new customer.

What is accident forgiveness?

It’s a program you enroll in where your provider promises not to increase your rates after your first at-fault accident.

Some of the best accident forgiveness companies include Allstate and GEICO.

Follow these easy tips on how to get the best accident forgiveness:

  • Find an affordable or free program
  • Consider the pros and cons based on your budget and driving record
  • Ask the provider how a claim impacts your rates without accident forgiveness

Finally, how comprehensive insurance claims affect auto insurance rates differs from filing a claim through the other driver’s liability policy.

Comprehensive insurance is meant to protect you from damage beyond your control. However, it still costs your provider money.

So rate increases do happen but average just $6 per month.

Personal injury protection claims typically only cause insurance rates to increase by $1 to $6 per month in no-fault states.

Are you a high-risk driver?

If you’ve filed multiple claims in a short time, you’re likely considered to be high-risk by insurance providers.

Unfortunately, high-risk insurance will usually cost from 25% up to 125% more than average.

What is a high-risk driver? Teens, new drivers, senior citizens, people with insurance lapses, DUIs, traffic citations, multiple claims, and at-fault accidents are all higher risks.

So auto insurance with two or more claims may qualify you as a high-risk driver, even if it’s a mix of multiple at-fault and not-at-fault accidents.

To secure affordable auto insurance for high-risk drivers, always practice safe driving techniques.

At-fault accidents, claims, and minor citations fall off of your record in three to five years as long as you don’t commit another offense.

If you’re struggling to secure insurance from a traditional provider, it may be because you’re too high-risk.

In that case, the best insurance for bad driving record customers may be SR-22 or high-risk auto insurance.

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Auto insurance companies that don’t raise your rate because of claims: What’s the bottom line?

Ultimately, you can’t entirely avoid auto insurance rates from companies that do raise your rate because of claims. It’s just too common of a practice.

However, providers like State Farm and USAA won’t increase your costs as substantially as companies like Allstate or American Family. But how can you save on auto insurance after claims?

The best way to buy auto insurance from companies that don’t raise your rate because of claims as considerably as others is to research and compare quotes online.

Be smart with future claims, and only file one if it’s necessary.

Use insurance discounts like multi-policy, safe driver, good student, telematics, or home and auto deals. Auto insurance discounts often stack, leading to significant savings.

You’ve compared auto insurance rates from companies that don’t raise your rate because of claims. Now enter your ZIP code into our free tool below to compare quotes from the best providers in your area.

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