The Procedure for Filing a Claim
Payment on an insurance claim protects the policyholder from financial ruin. Premiums are money paid to an insurance company by an insured person or entity in exchange for coverage under an insurance policy. Medical expenses, property damage, loss of life, homeowners’, landlords’, tenants’ legal responsibility, and motorists’ legal responsibility account for the bulk of insurance claims.
No matter how large an accident is or who is at blame, the frequency with which you submit insurance claims will directly influence the premium you pay for property and causality insurance (typically through installment payments called insurance premiums). The more claims a policyholder makes, the more likely it is that their premiums will go up. Commercial insurance companies can cancel excess claims on your insurance policy.
If the claim is being made because of damage you did to someone else’s property, you can bet your premiums will go up. Nonetheless, your charges may or may not go up if you are found not at fault. Accidents, not the policyholder’s responsibility, include being struck from behind when your automobile is parked and having your siding blow off your home in a storm.
How many claims you’ve submitted before, the number of speeding tickets you have received, the frequency of natural disasters in your area (earthquakes, hurricanes, floods), and even a low credit rating can all contribute to an increase in your premiums, even if the most recent claim was made for damage you did not cause.
Not all claims result in the same amount of money an insurer pays. Insurers may use incidents like dog attacks, slip-and-fall lawsuits, water damage, and mold growth as indicators of potential claims. Insurers are less likely to renew your policy and charge higher premiums if you have any of these issues. If you get a citation for speeding, your insurance may not go up. Several service providers will not raise rates because of a driver’s first speeding citation. The same applies when filing a modest claim on your vehicle or home insurance policies.
