Claim Type

• The type of claim will play a role as to whether your insurance rates increase. In many states, insurance companies are not permitted to add surcharges unless you are at fault in an accident. In addition to accidents that you did not cause, the company may not be able to raise your rates for comprehensive coverage claims, which involve incidents like vehicle theft or vandalism, cracked or chipped windshields or damage due to natural disasters like floods or hurricanes.
  
  

Surcharges

• If you are at fault in accident, your insurer may be able to add a surcharge, provided the amount of damage exceeds a certain threshold level. The amount of the surcharge can vary depending on the insurer, but you can expect it to be about 30 percent of your base premium. Your base rate is typically the rate before any discounts are applied and other charges like claim processing fees are added. The surcharge will normally drop off after a time, assuming you have no additional at-fault accidents.
  
  

Additional Circumstances

• Sometimes additional penalties accompany an accident. For instance, if you caused an accident due to driving while intoxicated, you'll probably lose your license for a period of time, likely causing your insurer to cancel your coverage. This forces you to seek coverage with a high-risk insurance company once your license is restored. Unfortunately, high-risk insurance is not cheap, and it may cause your rates to double or even triple. You may have to remain with the high-risk carrier for several years before you qualify for standard rates again.
  
  

Forgiven Accidents

• Situations can occur where your rates will not increase even after an at-fault accident. Many larger insurance carriers offer first-accident forgiveness, which allows you to avoid a surcharge under certain conditions. Normally, you must be insured with the company for a specific period of time, such as five years, and be free of at-fault accidents during that time, or at least ones where the payout is under the threshold amount. If you "use up" your accident forgiveness, you may be able to regain it at some point if you have no additional accidents.