Many people are hesitant to file claims with their auto insurance company out of fear that their premiums will increase or the policy will be canceled.  While practices vary between insurance companies, more will increase your premiums by a predetermined percentage for each chargeable claim made against your policy above a specific dollar amount.

A chargeable claim is one that an insurance company considers to be your fault primarily.  Additionally, these premium increases will generally remain in effect for three years following the claim.

Your insurance company also has the right not to renew your policy if your driving record gets worse or you have had several accidents. Insurance companies differ in their definitions of a bad driving record; however, most view two minor violations, such as a minor speeding or moving violation, or one major violation, such as excessive speeding or a DUI, within three years, as a poor driving history.

You may also decide not to renew your policy if your driving record deteriorates significantly or you are involved in multiple accidents. Different insurers have different rules about what constitutes an unacceptably bad driving record. But some accidents, such as those caused by drunk driving, will probably trigger a nonrenewal from virtually every insurance company.

If you have an accident but don‘t report it to your insurer, you are taking a risk, even if the damage seems minor. If the other driver sues you weeks or months later, your failure to report the accident might cause your insurer to refuse to honor the policy. And even if they do honor the policy, the delay will certainly make it harder for the insurer to gather evidence to represent you.