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Reasons your claim history matters to car insurance companies


The role that your case history has in determining how your collision protection premiums are calculated.

Various aspects will be taken into consideration before an auto backup plan will provide you with a strategy or determine your monthly rates. Your previous court cases are going to be one of the things they look at. In spite of this, what information do insurance companies look for when reviewing your claims history, and how does this factor into the calculation of your premiums? Continue reading to see how the instances you’ve had in the past impact the accident protection rates you get.

Historical Claims and the Current Rates

Car insurance companies and other companies that offer driver protection will look at your driving record to determine whether or not you are a safe motorist. If you have a history of filing a large number of claims, your insurance provider may see you as a higher risk and hence charge you a higher premium. As is customary, the larger the danger you pose, the more the premiums you’ll have to pay for protection. On the bright side, if you are a safe driver, you may look forward to having accident coverage premiums that are on the lower end of the spectrum when you reach that point.

Not All Claims Will Raise Your Rates

Take note that the severity of the damages won’t have any impact on the cost of your accident policy. Because thorough cases are the result of events that are beyond your control, such as a fire, storm damage, robbery, etc., guarantors won’t hold these cases against you even if you have a history of thorough cases. Your insurance premiums will only be affected by incidents in which a legitimate party was at fault in an accident involving your vehicle.

The Methods That Insurance Companies Use to Access Your Claim History

Claims from many carriers will be monitored by auto back up plans using a report called CLUE, which stands for “comprehensive loss underwriting exchange.” The piece of information is a database that is used by all backup plans to keep track of and investigate the history of your situations. Every single backup plan submits a month-to-month report to the database detailing the current situation of their clients’ individual situations. These reports are kept in the structure for a significant amount of time before being removed. Before deciding whether or not to include you in their coverage, all auto backup plans will look at your CLUE report to determine the level of risk you provide.

The number of claims you’ve had in the past has this effect on the premiums you pay for your accident policy. Do you have any more questions about your vehicle’s participation in the package? In the event that this is the situation, your next step should be to seek assistance from the professionals at the Mike Leonard Insurance Agency. Our dedicated team is excited to find you the appropriate coverage from one of our many carriers, such as Kemper, MetLife, Nationwide, Travelers, The Hartford, Safeco Insurance, Progressive, and American Strategic Insurance.

Why Should You Choose to Work with the Mike Leonard Agency? We are an independent insurance agency, which is quite different from that of a captive agent such as All-State, State Farm, Farmers, or any of the other large insurance companies. In contrast to an independent agent, who may provide his clients with the prices of a variety of various firms, a captive agent is only able to provide them with the rates of the particular company that they work for.

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