- labor costs
- profitability of the insurance company
- updated data and stats
- and more
Because insurance companies do not provide any of us with a full breakdown of why insurance goes up at renewal, there is no way to know exactly how a previous claim actually impacted your insurance rate.
Here is the real question you need to ask: Do I need to file an insurance claim?
If you are in a situation where your expensive car just got totaled or you have a major insurable water leak in your home that caused significant damage, you likely need to file a claim. If it is going to be very expensive to fix on your own, by all means, use your insurance!
But what if you have a minor fender bender or scratch? What if you need to replace a windshield? What if the cost to repair the situation is not too bad?
If you are struggling with your monthly insurance costs, you may not want to file the claim. Claims can impact what you pay for insurance at renewal. Filing a claim in certain situations may only add to your frustration.
What is your deductible?
The deductible is the amount that you have to pay before the insurance kicks in. If your deductible is $1000 but the cost to repair the situation is $5000, you may want to consider filing a claim–it could save you $4000.
But if your deductible is $2500 and the cost to repair the situation is $3000, it probably is not a good idea to file the claim. You may as well just pay the extra $500 and move on!
Again, the most qualified person to answer this question is your insurance agent who knows about your situation. But even your agent will not know the exact answer. They will not be able to give you a dollar amount, they will only be able to give you an educated guess.
For more information on your insurance premiums and why they go up every year, check out this video: https://youtu.be/Aw1Mp42u5DQ