Half of Insured Americans Avoid Auto or Home Claims Over Premium Concerns

Fear of higher premiums is changing what many insured Americans do after damage to a car or home. Half of those with auto or home insurance said they had avoided filing a claim, according to LendingTree research. The tradeoff can leave people covering repairs themselves, accepting a cheaper fix, or living with damage they might otherwise have claimed.

Auto claims dominate claim avoidance

Among people who avoided a claim, 73% said their most recent situation involved car insurance. Nearly one in four respondents said a possible rate increase was a reason to hold back. And 73% of claim avoiders said they probably would have filed if doing so had no effect on premiums, discounts, renewal terms, or future eligibility for coverage.

That gap points to a practical calculation drivers face after damage: whether the likely payment is worth the concern about future insurance costs. The survey doesn’t establish what any individual’s premium would have been after filing, or how a particular insurer would handle a claim. It does show that the expectation of higher costs weighs heavily on people’s decisions.

Premium concerns sit alongside uncertainty about the process and the eventual payment. Fifteen percent of claim avoiders worried their coverage could be canceled or not renewed; the same share didn’t want a claim in their insurance history or considered the process too stressful, time-consuming, or inconvenient. Fourteen percent thought a claim might be denied or only partly covered. Other respondents wanted to settle the matter privately, had been advised against filing, or had another person or organization agree to pay.

Some people also cited having too many claims on record, reluctance to share personal or location information, uncertainty about documentation, or not knowing whether the damage was covered. Each concern can make the decision harder, particularly when the repair cost is unclear or an insurer’s contribution is uncertain.

Out-of-pocket costs and second thoughts

For people who decided not to file, avoiding the claims process didn’t necessarily avoid a bill. Thirty-four percent paid at least $1,000 themselves, including 15% who spent $2,500 or more. Claim avoiders most often handled the issue themselves (29%). Others paid the full cost (23%), chose a less expensive solution (20%), or skipped the repair or replacement (18%).

The responses suggest that “not filing” can describe very different outcomes. One person may make a minor repair independently; another may absorb a substantial expense or leave damage unresolved. The survey doesn’t specify the type or severity of damage in each case, so the figures don’t show which option was appropriate. They do underline why the possible repair bill matters alongside concerns about future premiums.

Views after the decision were mixed. Forty percent said avoiding the claim had been the right choice, while 37% regretted it. Sixteen percent reported no noticeable downside. That spread offers no simple rule for when a claim makes sense: the cost of repair, potential payment, coverage terms, and the individual’s concerns all shape the result.

Among people who pursued a non-routine auto or home claim during the previous five years, 46% said the insurer paid about what they expected. A third said the payment was lower than expected, 26% had a claim denied, and 27% experienced a premium increase. These are respondents’ reported experiences, not a prediction of what will happen with any particular claim.

Age differences and the cost backdrop

Avoidance was more common among younger insured respondents. LendingTree reports that 84% of Gen Z respondents with auto or home insurance had avoided a claim, compared with 63% of millennials, 40% of Gen Xers, and 27% of baby boomers. The survey figures show a generational difference, though they don’t explain its cause.

Rob Bhatt, a LendingTree senior writer and licensed insurance agent, said financial strain can feel worse when repair costs follow an accident or other loss. He also noted that repairs can help a car or home retain value. That consideration may matter when weighing a lower-cost fix against leaving damage in place, although the survey doesn’t measure how repair choices affected resale value.

Insurance costs form part of a broader ownership bill. The Zebra’s 2026 State of Insurance report put the median annual cost of car insurance at $2,079 and described transportation expenses as roughly 17% of annual spending for Americans. An Insurify report released in August put the national annual average for full-coverage auto insurance at $2,237, up 1% since the end of 2025. AAA’s latest Your Driving Costs analysis estimated annual ownership and operating costs for a new vehicle at $12,863, including an average $2,098 for full-coverage insurance under the driver and location conditions it specified.

Those reports use different measures, so their insurance figures aren’t directly interchangeable. Together, they help explain why drivers may scrutinize a claim’s possible effect on future costs. LendingTree commissioned QuestionPro to survey 2,000 U.S. consumers online from Aug. 5 to 9. The survey used a nonprobability-based sample, with quotas intended to reflect the overall population.

For drivers and homeowners, the research captures a tension between an immediate repair bill and concern about longer-term insurance costs. The responses don’t settle that calculation, but they show how often people are making it—and how frequently the choice can mean paying out of pocket or reconsidering the decision later.

Featured image credit: Anja Stefanovic/iStock

Related reports: The Zebra’s 2026 State of Insurance report; transportation cost findings; Insurify’s full-coverage cost report; and AAA’s Your Driving Costs analysis.