Yes, your auto insurance company will most likely raise your premium. The auto insurance companies have different practice in the matter of raising insurance premiums for the insured drivers who file a claim.But generally if you have a clean driving record and have no tickets or accidents on your driving history, the insurer may not increase your premium rate just because of one accident. But if you are found to be a repeated offender your insurer will surely raise your premium rate as they classify you as a hazardous driver, a financial risk for the insurance company. In some cases, the insurance company simply will increase the rate of premium for an insured driver for making enquiries about making a claim.
The extent of increase differs with each insurance provider. The usual practice is to raise the premium rate at a percentage rate. This increase will be much higher if you have caused the accident. The increased rate will apply for the next 2 or 3 years in a row following your claim.
The insurance company is most likely to cancel your policy if you are at fault. When a driver does not file a claim for three continuous years, the insurance company gives him a discount when he renews his auto insurance policy. Your policy will get cancelled if you file a claim in an at fault accident. Repeated claims will attract an even higher premium. The rate increase following at fault accident is a legal right of the auto insurance provider.
In simple terms, how many times you file a claim with your auto insurance company will have a direct impact on your premium rate. The more the number of claims the higher will be your auto insurance premium. Too many claims will result in the refusal to renew your policy.
Many people may think of not reporting it to their insurance company for fear of rate increase. But if the other involved in the accident file a claim or sue you, you are in for severe consequences.