I’ve been with USAA for 35 years and never filed a claim until two years ago for a minor issue. Here’s what happened:
10/6/23: Claim payout of $507.60
Then the premium increases started:
11/24/23: $322.06 added to my premium due to the claim.
11/25/24: $373.83 added to my premium again for the same claim.
Who knows what 2025 will bring?
At this point, it feels like filing a claim is just paying it back through higher premiums. Why would anyone do this? It’s clear USAA benefits more from these premium hikes than the claims themselves.
I used to trust this company, but now I’m seriously looking for alternatives.
Insurance lets you add small coverage options, like $16 a year for electronics. But when you file a claim, they’ll charge you more than the item’s worth in higher premiums. What’s the point?
Ty said: @Hollis
This is why you should use a Personal Articles Policy for specific items. It’s got a smaller deductible, better coverage, and doesn’t mess with your main policy’s risk rating.
Even personal articles policies show up on your CLUE report and can raise your risk profile.
Rory said: @Juneta
Some companies in certain areas don’t count personal articles claims against homeowners policies, though.
My wife lost her wedding ring, and our personal articles policy covered the $1,000 claim. But when I shopped for new homeowners insurance, that claim still raised my quotes.
This is a tough lesson, but a lot of people will tell you not to file small claims. The amount of the claim matters less than the fact that you filed it when it comes to setting future premiums.
Wendell said:
This is a tough lesson, but a lot of people will tell you not to file small claims. The amount of the claim matters less than the fact that you filed it when it comes to setting future premiums.
I’ve always thought insurance should be for catastrophic losses.
When you file a claim, you change your risk profile. Statistically, you cost more now, so they charge you more. It’s frustrating, but that’s how it works.
Clove said:
Why would you file a claim for such a small amount? Insurance is for bigger losses.
Insurance is there for situations you can’t afford to handle yourself, not for little things. Filing small claims makes you look like a high-risk customer.
@Blair
Yep. I filed a claim once when my car repair was going to take three weeks and needed a rental. The total cost was over $6,000. My insurance went up by $30 a month, but it still worked out better than paying out of pocket.
Once you file a claim, it’s on your record. Even if you switch insurers, they’ll see it when they run your report. It’s a hard lesson, but only file claims for things you really can’t afford to handle yourself.