Will my insurance premium increase if I file a car insurance claim with State Farm?

Will my insurance premium increase if I file a car insurance claim with State Farm? You must remain accident-free for nine years with State Farm to earn accident forgiveness, so your premium will very likely go up after you file a claim.

But if you’re not at fault for the incident and you have a relatively clean driving history, the price bump may be little or nothing at all.

It’s best to read our State Farm Insurance review or ask a State Farm agent before you get into an accident to find out whether your premiums will increase because of filing a claim. If you want a company with an accident forgiveness program, State Farm may not be the best car insurance option for you.

Keep reading to find out factors that affect car insurance rates State Farm other aspects such as your driving history and the type of vehicle you own, you can substantially reduce your insurance premiums.

Your Insurance Premium May Increase if You File a Car Insurance Claim With State Farm

Because State Farm, like other insurers, is in the business of reducing risk, there’s a good chance your premiums will increase if you file a car insurance claim.

The more State Farm charges in premiums, the more funds it has in its accounts to pay for claims, cover company overhead costs, and make investments. As you compare car insurance, you’ll find this holds true for companies across the board.

When someone gets into an accident, especially if they’re at fault, an insurance company often increases their car insurance rates, specifically because the person is at a higher risk of filing another claim in the future.

In this way, the company reduces the chances of having to pay out more money than it receives via premiums.

Reasons Why Your State Farm Car Insurance Rates Increase if You File an Insurance Claim

Even though car insurance requirements and practices differ from one state to another, the reasons why State Farm and other companies increase premiums are relatively consistent. All of the following may indicate to State Farm how likely you are to cause the company financial losses in the future.

Whether You Were at Fault

If you’re not at fault, the other driver’s insurance company may cover the losses. This means State Farm may not have to pay anything for vehicular damage or injuries, so it may not see you as someone that introduces excess risk.

On the other hand, if you’re at fault, State Farm may be more likely to increase your premiums in an attempt to mitigate its financial risk of covering you. (For more information, read our “What information do I need to file a car insurance claim with State Farm?“).

How Often You File Claims with State Farm

State Farm may interpret several claims as indicative of risky driving behavior, and customers that frequently file claims with State Farm may be more likely to see their premiums rise after each claim.

How Severe Your State Farm Claim Is

More expensive claims are more likely to cause a significant bump in your monthly car insurance payments. This helps offset the cost of the claim and the risk of you filing another expensive claim in the future.

Your Driving Record

Your driving record is one of the key, and people with poor driving records may be more likely to see a hike in premiums after filing a claim. State Farm may interpret a poor driving record as a sign that you may be filing more costly claims in the future.

The Last Word on Premium Increases When You File a Car Insurance Claim With State Farm

State Farm is likely to increase your car insurance rates if you file a claim to reduce its risk of financial loss in the future. If you feel you’re not at fault for an accident, you should provide plenty of well-documented evidence because you have a better chance of not seeing a premium hike.

One of the best ways to limit how much your premium goes up is to maintain a clean driving record for several years in a row. State Farm offers accident forgiveness to drivers who remain accident-free for at least nine years.

This is longer than most insurers, so use our free comparison tool below to compare car insurance quotes from multiple companies with more competitive accident forgiveness programs.

Read more: What is accident forgiveness coverage?