Do ALL auto insurance companies raise your rates after ONE claim?

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My mom was pulling into a parking space, & the side of her car accidentally scratched the side of a car parked next to her. The car's owner appeared, & they exchanged info. It turns out the cost to fix the other car's paint job was between $800-$1,000. My mom's insurance company told her that if the cost of a repair is more than $750, then her rates will be raised. So, now, for the next THREE years, her rates will be 10% higher! :(

Does this strike anyone as EXCESSIVE? Or is this pretty much how it is? I mean, it's not like she totalled the other car in a traffic accident! All she did was scratch the paint of a parked car! And the cost wasn't all that much more than $750 anyway! PLUS, my mom's been driving for more than 40 years, with a PERFECT driving record & NO insurance claims in all those years.

I don't get it. It seems like the "punishment" doesn't fit the "crime". :( Are most auto insurance companies this arbitrary & strict the first time you have even a small claim??

Do ALL auto insurance companies raise your rates after ONE claim?

The time period is strange as well as there being a 750 limit to cause an increase. I would say it is definitely time to look for another insurance company. 10% increase over 3 years? What are the premiums now? Sounds like that she would better to pay out of pocket if she has the money. Figure out how much it will cost for the higher premiums verses out of pocket. The funny part (or not so funny) is the insurance company will probably negotiate a deal with the body shop and pay less than the 750.

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Do ALL auto insurance companies raise your rates after ONE claim?

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