The Effects of Using Your Own Auto Insurance: Will It Increase Your Rates?

When you’re involved in an auto accident, one of your first thoughts might be about how using your own auto insurance will affect your rates. This concern is valid, as many factors influence auto insurance premiums. In this blog, we’ll explore the effects of using your own auto insurance, discuss when it might lead to a rate increase, and provide tips on how to manage your claims efficiently.


Understanding Auto Insurance Rate Increases

Insurance rates are determined by a variety of factors, including:

When you file a claim, your insurer assesses the risk you pose as a driver. A higher perceived risk often leads to increased premiums. However, not every claim will automatically result in a rate hike.


When Using Your Insurance Affects Your Rates

  1. At-Fault Accidents: If you are found at fault for an accident, it’s almost certain your rates will increase. Insurers see at-fault accidents as a significant risk indicator.
  2. Comprehensive Claims: Claims for non-collision incidents, such as theft, vandalism, or natural disasters, may not always lead to rate increases. These events are often seen as less indicative of driving behavior.
  3. Minor Accidents: Some insurers offer accident forgiveness programs that prevent minor accidents from affecting your rates. Check with your provider to see if this applies to you.

Steps to Mitigate Rate Increases

  1. Review Your Policy: Understand the details of your coverage, including accident forgiveness options and discounts for safe driving.
  2. Consider Paying Out-of-Pocket: For minor damages, it might be more cost-effective to pay for repairs yourself rather than filing a claim.
  3. Increase Deductibles: A higher deductible can lower your premium, though it means you’ll pay more out-of-pocket in case of a claim.
  4. Shop Around: Regularly compare insurance quotes to ensure you’re getting the best rate. Loyalty doesn’t always mean the best price.

In Texas, the law requires all drivers to carry minimum liability coverage. It’s crucial to understand how state regulations impact your insurance decisions. For comprehensive legal advice on handling auto insurance claims and personal injury cases, consult with a specialized attorney, such as those at Ryan Orsatti Law.



This comprehensive guide aims to provide valuable insights into how using your auto insurance can impact your rates, tailored specifically for Texas residents. For any further questions or legal assistance, feel free to reach out to our team at Ryan Orsatti Law.