The situation is all too familiar. Maybe you nicked another car while parallel parking or backed into the cement wall of a parking garage. Maybe you were even involved in a more serious fender bender and the other driver suggests settling the damages with a cash payment. If this is your first time in an accident, you may be unsure of what to do next. In all of these scenarios, you may be wondering if you should file a claim with your auto insurance provider. You may worry that making a claim will raise your premiums or make the situation more complex. One reason to weigh the decision carefully: overall auto insurance prices jumped in recent years as repair and medical costs climbed, a trend reflected in the U.S. CPI for motor vehicle insurance (BLS), so any post-claim surcharge now sits on top of a higher baseline.
First of all, take a breath; accidents happen. The most important thing is making sure that you, your passengers, and any other drivers involved are safe. Once you have resolved any immediate concerns at the scene of the accident, you can begin deciding whether or not to file an auto insurance claim. Insurers encourage prompt notice because early First Notice of Loss (FNOL) speeds triage, rental setup, photo estimating, and parts ordering as more claims move to digital and telematics-enabled workflows (CCC Crash Course; LexisNexis U.S. Auto Insurance Trends). This is especially useful if another party is involved or injuries surface later.
However, there are some instances when filing a claim may not be necessary. Below, we walk through common scenarios where you might file versus pay out of pocket. Keep in mind that modern vehicles often require ADAS sensor scans and calibrations even for “minor” bumper, windshield, or mirror damage, which can materially increase repair costs and cycle time (CCC Crash Course 2025). When in doubt, get a professional estimate before deciding.
You Should File an Auto Insurance Claim If…
There are injuries (even minor ones)
In many states, called no-fault states, your own Personal Injury Protection (PIP) pays first for you and your passengers’ medical expenses regardless of fault. As of 2025, the 12 no‑fault jurisdictions are Florida, Hawaii, Kansas, Kentucky (choice), Massachusetts, Michigan, Minnesota, New Jersey (choice), New York, North Dakota, Pennsylvania (choice), and Utah (Insurance Information Institute; NCSL). These systems also limit lawsuits unless an injury meets a state-defined threshold. If you are at fault in a tort state, your liability coverage pays others’ injuries. Because medical bills can escalate and seemingly minor injuries may worsen, promptly reporting the incident helps ensure coverage and documentation if a claim or lawsuit follows (see state regulator guidance for examples: New York DFS; Massachusetts).
When another driver is involved
Filing a claim is recommended anytime a collision involves another driver. Fault determinations are handled by insurers and, when applicable, police. Private “cash deals” can unravel if unseen damage or injuries emerge. Digital FNOL, dashcam clips, and connected‑car crash detection can speed liability decisions and repairs (CCC). Even when you’re not at fault, rating practices vary by state: national data shows a typical change around +0% to +4% after a not‑at‑fault accident, but some states restrict these surcharges—California, for example, generally bars rate increases for not‑at‑fault accidents (Insurance.com).
There are heavy damages to vehicles or property
Insurance exists to absorb large losses so you don’t pay them all at once. If you cause significant damage to someone else’s car or property, your liability coverage applies; if your own vehicle sustains major damage, collision coverage pays (minus your deductible), and a comprehensive claim applies to perils like theft, hail, or animal strikes. Surcharging practices differ by claim type: a single comprehensive claim typically has little to no impact (about 0%–3% on average), while a chargeable at‑fault collision tends to drive the largest increases (Insurance.com; Forbes Advisor).
You Shouldn’t File an Auto Insurance Claim If…
You are the only person involved
If you back into a post and put a dent in your bumper with no injuries or third‑party damage, you may decide not to file. Liability insurance—required in every U.S. jurisdiction except New Hampshire as of 2025—doesn’t pay for your own car; it pays others when you’re at fault (Virginia DMV; AAA Digest). For your car, Collision coverage is optional unless your lender/lessor requires it, which is common for financed or leased vehicles (Triple‑I; NAIC). If you don’t carry collision, you’ll pay out of pocket for your own vehicle damage.
There is only a small amount of damage
Even if you have collision, it can be reasonable to skip a claim for cosmetic, sub‑deductible damage. Typical collision deductible choices range from about $250 to $2,500; pick the highest you could comfortably pay tomorrow and confirm the premium savings versus risk over 3–5 years (NAIC). Also weigh claim type: a single comprehensive claim is often not surcharged (around 0%–3% when it is), while a chargeable at‑fault collision can raise rates far more (Insurance.com; Forbes Advisor). Finally, late‑model vehicles with ADAS may need sensor calibration even after “minor” hits, which can push a repair above your deductible (CCC Crash Course 2025). For more on claims decisions, see file a claim.
Will My Auto Insurance Premiums Increase After a Claim?
Maybe. It depends on several factors, including your claim history, driving record, and policy. Current national analyses show that a single at‑fault accident commonly raises full‑coverage premiums about 42% to 56% on average, depending on methodology (NerdWallet; Bankrate; Insurance.com; The Zebra). Not‑at‑fault accidents average around 0%–4% nationally and may be 0% in states that bar such surcharges (e.g., California), while a single comprehensive claim typically changes rates about 0%–3% when surcharged at all (Insurance.com; Forbes Advisor). For context, one speeding ticket is often +20% to +30% and a DUI roughly +60% to +90% on average (NerdWallet; The Zebra). Surcharges typically last 3–5 years and may taper if you remain claim‑free (Insurance.com). To visualize the dollars, applying a ~45% surcharge to Bankrate’s recent average full‑coverage premium (~$2,543) adds roughly $1,100 per year—on top of generally higher base rates noted by the BLS. If you have “accident forgiveness,” it may prevent a first at‑fault surcharge, but programs vary by carrier and state and typically apply only once: see examples from Progressive, GEICO, Liberty Mutual, Nationwide, and USAA. For historical context, see a 2020 study from Coverage.
Here are some additional factors that may lead to a premium increase if you file a claim:
- If you are at fault. If you are found to be at fault for the incident, your rates may go up because you are more of a claim risk in the insurer’s eyes. Chargeable accident surcharges commonly remain for 3–5 years and step down with time if no new incidents occur (Insurance.com). Accident forgiveness—when available—usually protects only the first at‑fault accident and may require a clean record or tenure; availability differs by state and carrier (Progressive; GEICO).
- If the claim involves extensive damage or high medical costs. If you cost the insurer a lot, it will try to recoup those costs through a rate increase. Collision claims tend to drive larger surcharges than comprehensive; a single comprehensive claim often has little to no effect (Insurance.com; Forbes Advisor).
- If you have multiple claims in a short period of time. Filing many claims compounds the impact. One national analysis estimates about +42% after one at‑fault accident and roughly +92% after two at‑fault accidents on average (ValuePenguin). Your claims history, or personal insurance report card, follows you for several years and is visible to new insurers.
- If you live in a no-fault state. No-fault states require insurers to pay for the insured’s and their passengers’ medical costs via PIP, so even a not‑at‑fault incident can generate claim payments. Where state rules allow, these can influence rates; in contrast, states like California restrict surcharges for not‑at‑fault accidents (Insurance.com; NCSL).
Driving uninsured may sound like a good way to get around an increased premium, but it isn’t worth it in the end — the costs if you get caught or cause an accident could top $5,000. If your monthly rates have exceeded an amount you’re comfortable paying, it may be time to get quotes from other companies to see how your current provider compares. Quotes are based on personal factors like age, driving history, and address, and every company weighs these factors a little differently. Consider enrolling in a telematics/usage‑based program to help offset increases for safe driving, which many carriers have expanded in recent years (J.D. Power; LexisNexis Trends).
What’s Next?
- Check your current coverage and deductibles and make sure you are in compliance with your state’s minimum coverage. Note that all U.S. jurisdictions except New Hampshire now require liability insurance (Virginia ended its uninsured motorist fee in 2024 and raised minimums in 2025), and some states recently increased minimum limits (Virginia DMV; California DOI; AAA Digest).
- If you haven’t shopped for new insurance lately, compare rates from a few different companies to make sure you’re getting the lowest price. Ask for quotes at multiple collision/comprehensive deductibles and inquire about telematics discounts, OEM parts or new‑car replacement endorsements if relevant to your vehicle (NAIC; Travelers OEM).
- For more information on buying auto insurance, see our car insurance buyer’s guide. If you’re unsure whether to file for a small loss, consult your agent or claims team first; for ADAS‑equipped cars, even minor‑looking damage can require costly calibrations (CCC Crash Course 2025).
