Expert: Richard Hixenbaugh - 8/6/2009

Question
In California., is there a dollar amount of a claim for collision damage below which an auto insurer will not take any punitive action against its insured (raising rates, dropping the coverage etc.)?

Facts: Car hits a cement wall - no damage to wall. If I make a claim to my insurer I pay the 1st $1000.  Is there an amount that my insurer can pay without me incurring a rate increase.

Answer
Hi Bruce,

Claim surcharges are different from company to company. The insurance companies set there own guidelines to when and how much to surcharge for different situations. The only way to find out is to call your agen and pose a hypothetical situation. Ask them if you were to make a claim for X, what effect would that have on your premium.  Do not tell them that an event has actually occured or they may raise your rate even if you do not make the claim.

I hope this helps
Richard Hixenbaugh