How much does the insurance premium increase in the second year after filing a claim in the first year of a new car?
4 Answers
If you file one insurance claim in the previous year, the premium for the second year will not increase, nor will there be any discount. According to the current new commercial auto insurance policy, if no claim is made, a 15% discount can be applied, while filing one claim results in no discount. Insurance Coverage: The coverage of compulsory traffic insurance includes personal injury, death, and property loss of the victim. Specific compensation items include medical expenses, nursing fees, transportation costs, nutritional fees, hospitalization meal subsidies, and other reasonable expenses incurred for treatment and rehabilitation, as well as income reduced due to lost work. In case of disability, compensation for assistive devices and disability compensation should also be provided. Common Vehicle Insurance: In addition to vehicle damage insurance, there are three types of mandatory auto insurance. First is compulsory traffic insurance, which is a state-mandated insurance to protect the rights of victims in traffic accidents. It is illegal to drive without it, but the compensation amount is relatively low, providing only basic protection. Second is third-party liability insurance, which mainly covers personal injury, death, and property loss of third parties, serving as a supplement to compulsory traffic insurance with higher coverage. After a traffic accident, compulsory traffic insurance pays first, and the remaining amount is covered by third-party liability insurance. Lastly, there is the no-deductible insurance, which, as the name suggests, has no deductible or co-payment. In the event of an accident, no out-of-pocket expenses are required.
I bought a new car last year and accidentally scraped it against a wall just a few months later. I filed an insurance claim to get it repaired, but my premium increased by almost 20% the following year, which was really painful. The exact increase is hard to predict—insurance companies base it on the claim amount and the severity of the accident. If the claim is a few thousand dollars, the premium usually rises by 10%-30%, while minor scratches might result in a smaller increase. Another key point is that filing a claim resets your no-claims discount to zero, which drives up the overall premium. I recommend shopping around with other insurers for better quotes or paying out of pocket for minor damages to avoid affecting your record. Be extra careful when driving a new car—don’t be reckless like me and end up wasting money.
Over a decade of driving experience has taught me that filing insurance claims in the first year of a new car will indeed affect the premium the following year, with an increase likely fluctuating around 15%. Based on my experience, after a rear-end collision that cost 10,000 in claims, my premium increased by 25% the next year, not to mention the loss of no-claim discounts. This increase isn't fixed and varies significantly between companies—for instance, large insurers might raise it by 10%, while smaller companies could go up to 30%. The hike is even steeper with serious accident liabilities and high claim amounts. Regular car maintenance is crucial; periodic checks on tires and brakes are the most effective way to prevent accidents. For minor scratches, it's better not to go through insurance but to get them fixed cheaply at a repair shop recommended by friends.
For those who drive to and from work daily, it's common for new car insurance premiums to increase in the second year after the first year. I've heard a 10% increase is normal, and it could go above 20% for more significant accidents. This depends on the insurance company's risk assessment, and your driving experience and claims history also play a role. To save money, you can start by comparing quotes from different insurance companies or maintain safe driving habits to avoid further incidents. Don't overlook this expense—it can save you a lot in the long run.
