how claims history influences your auto rates

How Auto Insurers Use Your Past Claims to Determine Your Rates

Why your auto insurer cares about your claims history.

When you apply for new auto insurance in Plano, Texas, the insurance company will consider your personal characteristics and circumstances when determining your premiums.  One factor your insurer will take into account is your claims history.  But how exactly do your past claims influence your auto insurance rates?  Here’s what you need to know.

How Claims Affect Your Rates

Auto insurers use your claims history to determine if you are a high or low-risk driver.  If you have a track record of making a lot of claims, then insurers will consider you riskier to insure.  As always, the higher-risk you are, the higher your insurance rates will be.  On a positive note, if you are a safe driver, then your auto insurance rates will be on the lower side.

Do Comprehensive Claims Also Raise Your Rates?

It’s important to note that comprehensive damage claims will not affect your auto insurance premiums.  Because comprehensive claims are a result of things outside of your control, such as fire, storm damage, theft, and so on, insurers will not hold these claims against you.  It is only the claims for actual at-fault auto accidents that will affect your rates.

How Auto Insurers Access to Your Claims History

Auto insurers will track claims from different carries with a CLUE (“Comprehensive Loss Underwriting Exchange”) report.  CLUE is a database that all insurers use to track and review your claims history.  All insurers file monthly reports to the database regarding their clients’ claims status.  These reports remain in the system for 7 years before they are deleted.  Before offering you coverage, all auto insurers will check your CLUE report to determine how high-risk you are.

This is how your past claims will influence the cost of your new auto insurance in Plano, Texas.  Do you need assistance with securing the right car coverage to meet your needs?  If so, then contact the experts at Tri-Star Insurance/HUB International to get started today.