Claims History
Claims history is a record of all past insurance claims filed by an individual or entity across different types of insurance coverage. Insurance companies use this information to assess risk and determine premiums when issuing new policies or renewing existing ones.
Example
“Mike's claims history showed three auto accidents in five years, which led to higher premiums when he switched insurance companies.”
Memory Tip
Your claims history follows you like your credit history - it's a permanent record that affects future insurance costs.
Why It Matters
Your claims history directly affects your ability to get insurance and the rates you'll pay across all types of coverage. A poor claims history can result in significantly higher premiums or even coverage denial, impacting your financial planning for years.
Common Misconception
Some people believe that switching insurance companies will hide their claims history or that small claims don't get recorded. In reality, most claims are reported to industry databases and follow you regardless of which company you use, making strategic claim filing important.
In Practice
Lisa has filed four homeowner claims in six years: $2,000 for a broken window, $5,000 for water damage, $8,000 for roof repairs, and $3,000 for theft. When shopping for new insurance, Company A quotes her $1,800 annually while Company B quotes $2,400 for identical coverage. Company B's higher rate reflects their stricter underwriting guidelines for applicants with frequent claims, even though Lisa's total claims ($18,000) weren't unusually large.
Etymology
Combines 'claims' with 'history,' from the Greek 'historia' meaning 'inquiry' or 'knowledge acquired by investigation,' reflecting the investigative nature of reviewing past claims.
Common Misspellings
Compare insurance quotes and save
Related Terms
More in insurance
Other insurance terms you should know
See Also
Need help with spelling?
Instant spelling checker with dialect variants for 2,000+ words.