How much does a claim increase my premium?

On average, a single claim increases premiums 7–10% for 3–7 years. A second claim within 3 years can increase premiums 15–20%. Three or more claims may result in 25–35% surcharges or policy non-renewal.

How long does a claim stay on my record?

Claims are reported to the CLUE database and remain for 7 years. However, most insurers only surcharge premiums for 3–5 years after a claim. Even after the surcharge period, the claim is still visible to other insurers.

Can my insurer cancel my policy for too many claims?

Yes. Insurers can non-renew your policy (not renew at the end of the term) for excessive claims, typically 2–3 claims within 3 years. This makes it harder and more expensive to find new coverage.

What is claims-free discount forgiveness?

Many insurers offer a "first claim forgiveness" feature that prevents a premium increase after your first claim if you've been claims-free for 3–5+ years. Some charge extra for this feature; others include it automatically.

Should I file a claim for wind/hail damage?

Weather claims are generally more favorably viewed than non-weather claims, since the weather is beyond your control. However, if the damage is close to your deductible, the small payout may not justify the potential premium impact.

Does a claim follow the property or the person?

Claims are associated with both the property and the person in CLUE. If you sell your home, the property's claims history stays with it. Your personal claims history follows you to your next property.

Claim Frequency Impact on Premium Calculator

See how filing insurance claims affects your homeowners premium over time. Calculate the long-term cost of frequent claims vs. paying out-of-pocket.

Current Annual Premium

Claim Amount

Deductible

Prior Claims (last 5 years)

Surcharge Duration

Claim Payout

$1,500.00

After $1,000.00 deductible

Annual Premium Increase

$270.00

15% surcharge

Total Premium Impact

$1,350.00

Over 5 years

Net Benefit of Filing

$150.00

Worth filing the claim

Planning notes, formulas, and examples

About the Claim Frequency Impact on Premium Calculator

Every insurance claim you file can increase your premium for 3–7 years. While insurance exists to be used, filing frequent small claims often costs more in premium increases than the claim payments themselves. Understanding this trade-off is essential for smart insurance management.

Insurers use a Comprehensive Loss Underwriting Exchange (CLUE) database that tracks all claims made against your property for 7 years. Even claims that don't result in payment are recorded. Multiple claims can also lead to policy non-renewal.

This calculator helps you compare the cost of filing a claim versus paying out-of-pocket. These are educational estimates — actual premium increases vary by insurer, claim type, and your overall claims history.

When This Page Helps

Filing a small claim today might cost you thousands in premium increases over the next 3–7 years. This calculator shows you the long-term impact so you can make informed decisions about when to file and when to self-insure.

How to Use the Inputs

Enter your current annual premium.
Enter the claim amount you're considering filing.
Enter the number of claims you've filed in the last 5 years.
Select the typical premium surcharge duration (3–7 years).
Compare the claim payout to the total premium increase over time.

Formula used

Premium Increase Per Claim ≈ 7–25% of annual premium
First Claim Surcharge ≈ 7–10%
Second Claim Surcharge ≈ 15–20%
Third+ Claim Surcharge ≈ 20–35%
Total Extra Cost = Annual Surcharge × Surcharge Years
Net Benefit = Claim Payout − Total Extra Cost

Example Calculation

Result: Net loss of $250 over 5 years

Claim payout: $2,500. With 1 prior claim, the surcharge for a second claim is approximately 15%, or $270/year. Over 5 years: $270 × 5 = $1,350. Plus loss of claims-free discount (~$200/year × 5 = $1,000). Total premium impact: $2,350. Net: $2,500 − $2,350 = only $150 benefit, after accounting for the deductible of $1,000 the net is -$250.

Tips & Best Practices

For claims under $3,000–$5,000, consider paying out-of-pocket to avoid premium increases.
Your first claim in 3+ years typically gets a "forgiveness" pass from many insurers.
Water damage claims are the most common and often lead to the highest surcharges.
Even inquiry calls (asking about a potential claim) can be recorded in CLUE.
Maintain a claims-free record for lower premiums and easier policy shopping.
These are educational estimates; actual surcharges vary by insurer and claim type.

The True Cost of Small Claims

Filing a $1,500 claim on a $1,000 deductible yields only $500. But the premium increase of 8–10% on a $1,800 policy ($144–$180/year) over 5 years costs $720–$900. You come out behind by filing the claim. The rule of thumb: only file claims that are significantly above your deductible.

Building a Claims Strategy

Reserve insurance for major losses ($5,000+). Self-insure small repairs with an emergency fund. Choose a higher deductible to lower premiums and reduce the temptation to file small claims. This approach keeps your claims record clean and your premiums low.

CLUE Report Awareness

You can request a free CLUE report at LexisNexis.com/consumer to see what claims are on your record. Review it annually and dispute any errors. Also check CLUE before buying a home to see the property's claims history.

Sources & Methodology

Last updated: February 9, 2026

Frequently Asked Questions

On average, a single claim increases premiums 7–10% for 3–7 years. A second claim within 3 years can increase premiums 15–20%. Three or more claims may result in 25–35% surcharges or policy non-renewal.