Should I File an Insurance Claim Calculator

How it works

Payout = max(0, damage − deductible) · extra premiums = yearly premium × increase % × years · net benefit = payout − extra premiums · break-even damage = deductible + extra premiums

An insurance claim is not free money: an at-fault car claim or a home claim often raises your premium for three to five years and can cost a claims-free discount. If the payout after the deductible is smaller than those extra premiums, paying the repair yourself is cheaper. Consumer groups also note that several small claims can label you high-risk or lead to non-renewal, so many people only claim large losses. Ask your insurer or agent how a claim would affect your price before filing — and always report injuries and liability claims.

Worked example

Damage costs 3,000 and your deductible is 1,000, so the claim would pay 2,000. If your 1,200 yearly premium rises 30% for 3 years, the claim costs 1,200 × 0.30 × 3 = 1,080 in extra premiums. The net benefit of filing is 920.00, so filing the claim pays; the break-even damage amount is 2,080.

Sources: Allstate — How much does insurance increase after an accident? · Insure.com — Will my homeowners insurance go up if I file a claim?

Frequently asked questions