Auto Insurance Companies That Don’t Raise Your Rates Because of Claims (2021)

There aren't many auto insurance companies that don't raise your rates because of claims. For the auto insurance companies that do raise your rates because of claims, accident forgiveness and other discounts could help prevent any excessive price increases. Drivers could save up to 35% on auto insurance with a no-claims discount.

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Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Cynthia Lanctot is an insurance professional with ten years of industry experience. Cynthia is licensed in several states, and holds an associate in claims law, as well as a bachelor’s degree in English. Cynthia’s experience includes the New England and Northeast states. She currently works as a liability claims professional and an occasional online contributor.

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Reviewed by Cynthia Lanctot
Licensed Agent

UPDATED: Aug 25, 2021

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A Concise Overview

  • There are very few auto insurance companies that don’t raise your rates because of claims
  • Accident forgiveness can help prevent or reduce the magnitude of your rate increases after accidents
  • High-risk auto insurance is helpful for those looking for auto insurance with multiple claims

Finding auto insurance companies that don’t raise your rates because of claims can help you save on your auto insurance coverages if you get into an accident.

With so many policy details, it’s hard to know which auto insurance company is best. Here we’ll outline why car insurance claims raise rates, accident forgiveness tips, and more.

Before we break down the auto insurance companies that don’t raise your rates because of claims, enter your ZIP code to get free rates from multiple auto insurance companies in minutes.

Why do car insurance companies raise rates after claims?

Auto insurers tend to raise rates after claims because claims are indicative of subpar driving habits. Some companies will raise claims regardless of driver fault while others will only raise rates on claims where the policyholder is at fault.

How do insurance companies investigate claims? As a whole, each auto insurance company will have a slightly different process when investigating claims. There are different types of claims that could be investigated such as:

  • Accidents
  • Theft
  • Vandalism
  • Incidental Damage (hail, falling trees, etc.)

Of course, insurers will be more concerned about accidents than they will damage caused by hail or other weather-related events. Even so, some companies may have an agent investigate the damage.

How much do car insurance rates go up after a claim?

Auto insurance rates can increase quite a bit after claims, but again, the type of claim is important when determining how much your rates will increase.

Average Annual Auto Insurance Rates After One At-Fault Accident by Company
CompaniesAverage Annual Rates with a Clean recordAverage Annual Rates with a Accident
Allstate$3,819.90$4,987.68
American Family$2,693.61$3,722.75
Farmers$3,460.60$4,518.73
Geico$2,145.96$3,192.77
Liberty Mutual$4,774.30$6,204.78
Nationwide$2,746.18$3,396.95
Progressive$3,393.09$4,777.04
State Farm$2,821.18$3,396.01
Travelers$3,447.69$4,289.74
USAA$1,933.68$2,516.24
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You’ll see above that auto insurance rates can increase by over $1,000 per year in response to a singular at-fault accident. Your price change will depend on whether you’re at fault or not at fault.

On the other hand, drivers may lose eligibility for claim-free discounts once they submit a claim. Sometimes, it’s worth it to pocket the bill for damages and skip submitting a claim.

No Claim Auto Insurance Discounts Available by Company
Insurance CompaniesClaim Free Discount
Allstate35%
Esurance25%
GEICO26%
MetLife20%
Nationwide10%
Safe Auto10%
Safeco20%
State Farm15%
The Hanover15%
Travelers23%
USAA12%
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Drivers can expect to save 10%-35% on auto insurance with claim-free insurance discounts. If you previously had this discount and you submitted a claim, you would lose the discount and could have an additive price increase.

Does the cost of a claim affect insurance? Sadly, the cost associated with a claim can affect your insurance. If you were at fault in an accident in which you collided with a McLaren, you might be in some trouble with your insurer.

Best Options to Avoid Rate Increases for Auto Insurance Claims

Whether we like it or not, the truth is that you’re more likely to find car insurance companies that do raise your rates because of claims than those that don’t. This doesn’t mean you can find better options if you fear multiple accidents.

The first option would be to choose an insurance provider with accident forgiveness. There are different types of accident forgiveness discounts. The best accident forgiveness companies will offer little to no price increase in response to an accident.

Most popular auto insurance companies, according to the Insurance Information Institute, offer accident forgiveness. Some examples include:

  • Allstate
  • State Farm
  • Nationwide
  • USAA

There are some other alternatives to accident forgiveness, most notably high-risk auto insurance. High-risk insurance is often touted as the best auto insurance for multiple claims.

High-risk is a broad concept, so your price will depend on various high-risk insurance factors like the number of accidents or infractions alongside the severity of those incidents. A handful of DUIs might cost more than multiple accident claims.

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The best high-risk auto insurance companies will usually be larger companies like State Farm. For drivers with a lot of associated risk, an insurer will need to be financially adept enough to handle additional claims, as needed.

Some companies offer additional programs or initiatives that help incentivize safe driving through insurance points. In short, these points accrue and help offset any claims or infractions in the future.

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Auto Insurance Companies That Don’t Raise Your Rates Because of Claims: The Bottom Line

Auto insurance claims can vary in severity and your rates can change accordingly. Driving safe and taking advantage of discounts or policy add-ons like accident forgiveness could help you save money on auto insurance.

By now, you should have a better understanding of when auto insurance companies don’t raise rates after claims. Before you go, Enter your ZIP to get free quotes from multiple auto insurers today.

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