Report: R.I. drivers pay 35% more after single insurance claim

RHODE ISLAND RANKS 22nd in the nation for the average size of auto insurance premiums increases after making a claim, according to InsuranceQuotes.com. Massachusetts had the largest average increase in the nation. / COURTESY INSURANCEQUOTES.COM
RHODE ISLAND RANKS 22nd in the nation for the average size of auto insurance premiums increases after making a claim, according to InsuranceQuotes.com. Massachusetts had the largest average increase in the nation. / COURTESY INSURANCEQUOTES.COM

PROVIDENCE – In Rhode Island, car insurance premiums rise by an average of 35 percent after a single claim, which puts the Ocean State 22nd in the country for its increase, according to a new insuranceQuotes.com report.
That means a claim in Rhode Island would increase an average premium to $1,398.56.

Rhode Island’s average still lags the national average, which shows that drivers pay 41 percent more after making a single claim, the report said. The national average increased 3 percentage points this year, compared with the 38 percent increase in 2014. This is the second time the website has done the report, which compares all 50 states and the District of Columbia.

Massachusetts is at the top of the list, where a single claim drives the cost of a car insurance premium up 76 percent, compared with 67 percent in 2014.

Following Massachusetts, the most expensive states are: California (+75 percent) and New Jersey, (+62 percent).
The lowest post-claim increases are in Maryland (+22 percent), Michigan (+23 percent), and Montana (+25 percent).
The report said that making a second claim proves to be very costly across the nation: a driver with two claims pays nearly twice as much for car insurance as a claim-free driver, an increase of 93 percent. In Rhode Island, a driver with two claims pays an average of 69 percent more for car insurance than a claim-free driver.
“Many consumers underestimate the consequences of making claims because they can affect your rate for years,” Laura Adams, a senior analyst at insuranceQuotes.com, said in a statement. “If you get a premium hike for making a small claim, that could hurt your finances over the long run.”
The report said that increases also are affected by the type of claim. Bodily injury and property damage (including collision) claims are the most expensive (+45 percent and +41 percent, respectively). Comprehensive claims (for non-collision events such as theft) are the cheapest at +2 percent.
The report can be viewed HERE.

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