Will my insurance premium increase if I file an auto insurance claim with Geico? (2024)
You may wonder if your premiums increase when you file an insurance claim with Geico. On average, Geico rates go up 79% after a claim, but factors such as driving record and accident severity also affect rates. Drivers can get Geico accident forgiveness to avoid rate increases after their first at-fault accident.
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Brandon Frady
Licensed Insurance Agent
Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in ventures from retail to finance, working positions from cashier to management, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his career. In his day-to-day interactions, he aims to live out his business philosophy in how he treats hi...
Licensed Insurance Agent
UPDATED: Oct 25, 2024
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Oct 25, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Rates usually go up after a claim, but may not depending on certain factors
- Geico accident forgiveness prevents rate hikes after the first at-fault accident
- No-fault accidents avoid rate hikes but may lead to losing certain discounts
Whether or not your insurance premium will increase after filing an insurance claim with Geico depends on several factors. In this article, we’ll dive into the key elements that affect your insurance rates and discuss Geico’s accident forgiveness program, which can help prevent rate increases after an at-fault accident. We also recommend reading our Geico auto insurance review to learn more about the company’s offerings.
Factors Influencing Geico Insurance Rates After a Claim
Geico considers various factors when determining if your premium will increase after a claim. These include:
- Your driving record: It’s important to have a clean driving record for auto insurance. Having no accidents or traffic violations can help keep your premium lower, while a poor driving history may result in increased rates.
- Number of past claims: Multiple claims within a short period may indicate a higher level of risk to the insurer, which could lead to an increase in your premium.
- Payout amount of claims: Large claim payouts can signal costly future incidents, potentially causing the insurance company to raise your premium.
- Availability of accident forgiveness: If you have Geico’s accident forgiveness on your policy, your rate may not increase after your first at-fault accident.
It’s essential to understand how these factors influence your insurance rates so that you can make informed decisions about coverage and take proactive steps to minimize potential increases.
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Geico’s Accident Forgiveness Program
Geico offers accident forgiveness to eligible policyholders in most states. This protection prevents your insurance rates from increasing after your first at-fault accident. There are two ways to obtain accident forgiveness with Geico:
- Earn it as a free upgrade: Policyholders who are 21 or older and accident-free for at least five years can qualify.
- Purchase it: Policyholders must meet minimum driving record requirements, which vary by state.
Be aware that Geico’s accident forgiveness program is unavailable in California, Connecticut, and Massachusetts.
How Much Geico’s Insurance Premium Can Increase
Without accident forgiveness, your premium increase will vary depending on the state, your driving record, and the claim amount. On average, Geico policyholders may see a 79% increase in their premium after their first at-fault accident with property damage valued at $750 or more.
No-Fault Accidents and Premium Increases
In some cases, even if you’re not at fault for an accident, you might lose your accident-free discount due to other auto insurance rate factors.
Geico typically won’t raise your base premium after a no-fault accident. Additionally, some states prohibit insurance providers from raising rates for not-at-fault drivers.Michelle Robbins Licensed Insurance Agent
If you’re unsure about why you’re seeing a recent premium increase, it may be good to research how insurers calculate your auto insurance rate.
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Deciding on Reporting Minor Accidents
When you’re involved in a minor accident, it can be challenging to decide whether to report it to your insurance company. Consider several factors listed below before making this decision.
Assessing the Damage
First, assess the damage to both your vehicle and the other party’s car. If the damages are minimal, such as small scratches or dents, handling repairs out-of-pocket may be more cost-effective than filing a claim.
State Laws and Regulations
Some states require drivers to report accidents, regardless of the severity of damages. Check your local laws and regulations to ensure you remain compliant and avoid potential legal issues.
Future Premium Increases
As discussed earlier, filing a claim has the potential to increase your premium. Consider whether reporting a minor accident could lead to higher premiums in the long run, especially if you’ve filed previous claims or have a less-than-perfect driving record.
Policy Requirements
Review your insurance policy for any requirements related to reporting accidents. Some insurers may require policyholders to report all incidents, even minor ones, as a condition of maintaining coverage.
Honesty and Transparency
Lastly, strive for honesty and transparency with your insurance company. Failing to report an accident can lead to difficulties with legal representation or jeopardize your coverage if the other party files a claim later.
Navigating Rate Increases After a Geico Claim
Understanding how claims impact your auto insurance premiums is essential for making informed decisions. While filing a claim may result in a premium increase, factors such as your driving record, past claims, and the availability of accident forgiveness can influence the outcome. It’s crucial to report accidents to your insurance company, even if the damage seems minor, to protect your interests in case of disputes.
Frequently Asked Questions
How do I report a claim to Geico?
You can report a claim to Geico by calling 1-800-841-3000, submitting a report online, or filing through the Geico mobile app.
How long will it take for Geico to process my claim?
How long it takes for an auto insurance company to pay out a claim varies depending on the complexity of the case and the extent of the damages. Generally, processing can take anywhere from a few days to several weeks.
Can I switch to another insurance company after filing a claim with Geico?
You can switch to another insurance company even if you have an open claim with Geico. However, keep in mind that other carriers will also consider your claims history when determining your new rates. It’s essential to shop around and compare quotes from multiple providers before deciding.
Do insurance premiums go up after a claim?
Yes, you’ll usually see rates go up by around 20%-30% after an auto insurance claim unless you weren’t at fault.
Why is my Geico insurance all of a sudden so much higher?
With higher car repair and replacement costs due to inflation, auto insurance companies have steadily increased rates. In addition, your Geico rates may have changed after adding a new coverage or losing an auto insurance discount.
Will my Geico insurance go up if I hit a deer?
Does auto insurance cover hitting an animal with a car? Generally, you won’t incur rate increases since hitting a deer is a comprehensive auto insurance claim.
How much does a claim increase your premium?
On average, rates go up by 20%-30% after filing a claim for an at-fault accident.
Should I get an estimate before filing a claim with Geico?
Yes, you should always get repair estimates before filing an auto insurance claim with Geico to see if it’s cheaper to pay out of pocket.
How long does a claim affect your premium?
If you need to file an auto insurance claim, it’ll likely remain on your record for up to three years.
Does a denied claim affect premiums?
Generally, a denied insurance claim won’t affect premiums unless you have a pattern of frequent claims.
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Brandon Frady
Licensed Insurance Agent
Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in ventures from retail to finance, working positions from cashier to management, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his career. In his day-to-day interactions, he aims to live out his business philosophy in how he treats hi...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.