Why Filing a Claim Could Raise Your Premium – Even If You’re Not at Fault

It seems unfair: you weren’t the one who caused the accident, yet your insurance premium still goes up after you file a claim. How is that possible?

Many policyholders assume that if they’re not at fault, their record—and their rates—should stay untouched. But in the real world of insurance, things don’t always work that way. In fact, just filing a claim, regardless of blame, can trigger a rate hike.

Here’s why it happens, how insurers justify it, and what you can do to protect yourself.

The Hidden Risk Factor: Claims History

Insurance companies don’t just assess your driving ability or the safety of your home—they analyze your likelihood of filing future claims. The more claims you file, even as an innocent party, the riskier you appear in their eyes.

That’s because statistics show that those who file claims once are more likely to file again. It’s not personal—it’s just data-driven underwriting.

4 Reasons Your Premium Might Go Up After a “No-Fault” Claim

1. You’re Now Seen as a Higher-Risk Customer

Even if you weren’t responsible, your claim adds a mark to your file. Insurers track this information through industry-wide databases like CLUE (Comprehensive Loss Underwriting Exchange), which other companies can see when quoting you.

🧠 Insider Tip: More than one claim in a short time span—no-fault or not—can put you in the “frequent filer” category.

2. Your Location May Be Considered Risk-Prone

If your car was rear-ended while parked on your street, you’re not to blame—but your location might be flagged as high-risk due to frequent accidents or thefts.

🧠 Insider Tip: Claims help insurers identify patterns and geographic risk, which they price into your renewal.

3. Certain Claim Types Are Treated Differently

Some “not-at-fault” claims—like weather damage, vandalism, or animal collisions—fall under comprehensive coverage. These claims don’t always increase your rate immediately, but too many can still trigger a review or affect your eligibility for certain discounts.

🧠 Insider Tip: Repeated glass or storm damage claims on a home can increase premiums—or result in non-renewal.

4. Your State’s Laws Matter

Insurance regulations vary by state. In some states, companies are allowed to raise premiums after any claim—even if you’re 0% at fault. In others, insurers must justify increases more clearly.

🧠 Insider Tip: Your neighbor’s claim might be treated very differently than yours depending on state laws.

When Filing Might Not Affect Your Premium

There are cases where filing a claim doesn’t cause a premium spike:

Claim falls below the threshold (minor damage, no payout)
You have accident forgiveness on your policy
First claim in many years with a good record
Payout is minimal and doesn’t flag a future risk

Still, nothing is guaranteed—so proceed thoughtfully.

So, Should You File or Pay Out-of-Pocket?

Before filing any claim, ask yourself:

✅ Can I afford to pay for the damage myself?
✅ Is the damage below or near my deductible?
✅ Will this affect future coverage or eligibility?
✅ Have I filed any other claims in the past 3–5 years?

And most importantly:

✅ Have I talked to my agent confidentially first? (Most can advise you without officially reporting the incident.)

Final Thoughts

Being involved in an accident or experiencing damage is stressful enough. But the added frustration of a rate hike—when it wasn’t even your fault—can feel like a second blow.

Unfortunately, insurance isn’t always about fairness—it’s about risk management. That’s why understanding how claims affect your record is key to making smarter choices.

Before you file, pause. Ask. Do the math. And always play the long game with your coverage.