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Filing a Couple Claims Can Double Your Auto Insurance Premiums

It may be cheaper to pay out of pocket, warns new study.

by on Dec.17, 2013

It may be cheaper to pay out of pocket in some instances, warns a new study.

Sure, you’ve had a perfect driving record until now, but a new study warns that putting in a claim on your car insurance can be unexpectedly costly – in fact, you might wind up spending more than what you get back.

A single “at-fault” claim will result in an average increase of 38% in your annual car insurance premium, according to a new study by insuranceQuotes.com, and a second claim could nearly double what you pay, the precise increases varying state-to-state.

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“The biggest lesson for consumers is not to file a claim unless absolutely necessary,” cautioned Laura Adams, a senior analyst at insuranceQuotes.com. “Making a claim for a few hundred dollars doesn’t make sense if your premium is going to skyrocket as a result.”

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Poor Credit Record Can Double Your Auto Insurance Costs

Even an “average” score can raise premiums.

by on Oct.31, 2013

Too many bills? Too much credit card debt? That can impact your insurance rate. Photo Courtesy: InsuranceRates.com

Here’s another reason not to let those bills go unpaid: damaging your credit record can add significantly to the cost of operating your automobile.

A new study reveals that drivers with poor insurance scores pay nearly twice as much for auto insurance as those with excellent scores. Even those with average ratings can wind up paying a premium, according to the report prepared for InsuranceQuotes.com.

“Considering all of the factors that go into car insurance rates, credit is actually one of the easiest to control,” said Laura Adams, senior insurance analyst, InsuranceQuotes.com.

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Insurance scores are very similar to the credit scores that can influence whether you can get a car loan, for example, and what inter rate you’ll pay.  Both are calculated using such factors as credit card balances, late payments and credit inquiries, though insurance companies use a proprietary scoring strategy and are looking to predict the likelihood that you might file a claim in the future.

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