What could be a potential effect of filing multiple claims on a driver’s auto insurance policy?

Filing multiple claims on an auto insurance policy can lead to higher premiums in the future. Insurance companies typically view a history of frequent claims as an indicator of risk. When a driver files several claims, it suggests that they may be more likely to experience accidents or require assistance again, which can prompt the insurer to raise premiums to account for this increased risk. This adjustment reflects the insurance company’s need to manage its risk exposure and maintain financial stability. In essence, a driver's claims history is a significant factor in determining their future insurance rates. Frequent claims are often seen as an alarming trend by insurers, leading to this expected increase in premiums.