How Does An Insurance claim work?

An insurance claim is an assistance that reimburses a policyholder against financial loss. A person or a group pays the premium as evidence for the fulfillment of an insurance contract. The insurance contract is between the insured and an insurance company. The most general insurance claim involves prices for medical purposes, property, and physical damage, and the loss of life. 

When it comes to property and causality insurance policies, there are some things to be mindful of. For instance, the severity of an accident or the person at fault, and the number of insurance claim that one file has a direct impact on the rates. Higher the amount of insurance claim filed, the higher the chances of the rate hike. If a client submits numerous insurance claim, the insurance company might not renew the policy. 

If the claim is filed based on the destruction caused by your client, the rates are bound to rise. Likewise, if it wasn't your client's fault, the prices for them might or might not increase. If your client gets hit from behind when their car is parked, your clients are not at fault. In this case, the rates may not go up. However, this isn't always the case.   

It would help if you informed your clients that the number of past insurance claim, speeding tickets, low credit rating, and the frequency of natural disasters in the client's area since all these might cause the rates to go up. The prices might still rise even if your client didn't cause the damage.   

Not all insurance claim is the same, so the rate hikes differ according to the cases. Instances like water damage, mold, slip and fall personal injury, dog bites are red flags to insurance companies.  

These items tend to hurt your clients' rates and the insurance companies' zeal to provide coverage in the future.