Filing even a single auto insurance claim of $2,000 or more leads to an average premium increase of 41%, a new analysis from insuranceQuotes.com and Quadrant Information Services revealed this week.
The annual report analyzed the change in monthly auto premiums for a hypothetical 45-year-old married female driver who is employed, has an excellent credit score, has no lapse in coverage and has never filed an auto insurance claim. Researchers considered claims in all 50 states and the District of Columbia for bodily injury, property damage and comprehensive incidents.
The results?
Relying on National Association of Insurance Commissioners data pegging the average cost of an auto insurance premium in the US at $815, an increase of 41% would mean a $335 spike in a policyholder’s insurance bill—generally limited to claims in which the driver is at fault.
Filing a second claim means an even more costly premium increase of 93%.
Residents in some states could pay even more. According to the report, premium increases vary significantly based on geography, with policyholders in Northeastern and Midwest states paying the most for auto claims.
At the top of the pile is Massachusetts, where filing a claim of $2,000 or more will result in an average 76% increase—up from 67% in last year’s report. California is also expensive for policyholders filing claims, with a 75% increase in premium.
By contrast, states like Maryland—with a 21.59% increase—and Michigan, with its 23.41% increase, make for more palatable rate increases.
The five most expensive states in which to file an auto insurance claim include:
1. Massachusetts
Average annual premium: $976.65
Average increase after 1 claim: 76.27%
Average annual premium after 1 claim: $1,721.55
2. California
Average annual premium: $749.79
Average increase after 1 claim: 75.37%
Average annual premium after 1 claim: $1,314.94
3. New Jersey
Average annual premium: $1,219.93
Average increase after 1 claim: 62.35%
Average annual premium after 1 claim: $1,980.52
4. North Carolina
Average annual premium: $611.48
Average increase after 1 claim: 51.65%
Average annual premium after 1 claim: $927.32
5. Minnesota
Average annual premium: $718.61
Average increase after 1 claim: 47.89%
Average annual premium after 1 claim: $1,062.78
