ASK KIM Not All Auto Accidents Result in Premium Hikes by Kimberly Lankford
I damaged my car by backing out of the garage when my car door was still open, and the repair will cost $2,500 to $3,000. I have a good driving record, with no accidents in the past nine years. Will my insurer, State Farm, raise my premium if I file a claim for the damage?
Probably not. The rules vary from state to state, but most companies will let your first accident slide if you're a longtime customer and have an otherwise clean driving record.
Drivers responsible for accidents that cause more than $750 in damage can lose their good-driving discounts at State Farm -- unless they've been accident-free for nine years or more. Because you've reached that magic number, your discount is probably safe.
In addition to jeopardizing good-driving discounts, an accident could lead to a temporary premium surcharge. State Farm, for example, may hike premiums by 5% to 20% after an accident. Again, though, a long accident-free record -- six years at State Farm -- inoculates you against the surcharge.
Every company has different rules for its good-driver discounts and surcharges, and so do states. For example, Texas mandates a surcharge for at-fault accidents with $1,000 or more of property damage. The surcharge, which applies for 36 months, ranges from 15% for one accident to 90% for four or more accidents.
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