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Stressed About Premium Hikes? How P&C and Supplemental Insurance Differ

March 18, 2025

4 minute read

Category: Supplemental Benefits

Male professional reading in an office.

In the world of Property and Casualty (P&C) insurance, there can be a stigma around filing claims on coverage like auto or homeowners insurance. On P&C insurance, rate hikes may occur for reasons including a history of frequent claims, changes in risk factors, and market conditions. It’s possible policyholders may hesitate to seek the benefits they are entitled to due to concerns about potential premium hikes.

On the other hand, supplemental insurance is specifically designed to provide coverage in addition to major medical insurance. Plans such as accident, cancer, and disability insurance are employee benefits commonly purchased that provide additional protection. However, if consumers are more familiar with P&C insurance than with supplemental insurance, they could have misconceptions surrounding how benefits on supplemental policies work.

Will filing supplemental insurance claims raise my premiums?

Don’t let the fear of filing claims prevent you from accessing the important benefits you deserve. Here are some of the hesitations individuals may have when it comes to filing claims. Let’s address these to help instill confidence in the valuable benefits you carry.


Myths on How Filing Affects Your Policy


Myth: My Rate Will Increase

One concern that may arise around filing supplemental health insurance claims is that filing a claim will result in higher insurance premiums. While rates can vary for several reasons, filing for supplemental insurance benefits will not typically lead to unwarranted rate hikes. Further, it's important to know that supplemental insurance claims have little to no impact on major medical premiums. This may be good news that allows policyholders to feel more at ease.

Myth: My Policy Will Get Cancelled

The concern of policy cancellation due to filing claims is a valid one. However, it's essential to understand that policyholders who file claims responsibly and legitimately shouldn’t worry about policy cancellation. Fraudulent claims are typically the triggers for policy cancellation, rather than genuine claims.

Myth: Filing Takes Too Much Time

The claims process can seem daunting, requiring time and effort on the part of the policyholder. Many providers strive to simplify the process and provide efficient support through mobile or online claim filing. Our survey data shows 83% of respondents stated they were satisfied or very satisfied with claim filing on our AFmobile® app1. If it’s been a while since you’ve filed a claim with your provider, give it another go. With technology constantly changing, there’s a good chance the claims process has also improved.

Myth: My Policy Won’t Cover It

Uncertainty about the extent of coverage and the potential for claim rejection can be unsettling. To start, get familiar with what your policy covers. And remember, there’s nothing to fear in rejection of a claim. As an example, supplemental health insurance may pay you for a broken bone, money for a doctor’s visit, or benefits for being disabled. In fact, our customer care representatives typically encourage policyholders to submit all the information they can, like EOBs and other documentation. There could be a hidden, payable benefit that the untrained eye doesn’t see. 

Benefits of Supplemental Insurance Claims

Supplemental insurance can offer coverage beyond major medical insurance, addressing specific events or expenses that may fall outside the scope of major medical coverage. By filing claims, policyholders can maximize benefits they have paid for. This can help ensure they receive the necessary financial support during challenging times.

Unlike major medical insurance claims, supplemental insurance claims typically have little to no impact on premiums or coverage availability. Individuals are encouraged to file claims without worrying about adverse consequences. Going through the steps of documenting and filing a claim may help policyholders gain clarity on eligible expenses and the overall claims process.

Don’t let these concerns make decisions for your health. Need assistance educating your staff on their benefits? We’re here to help.

This information is general in nature and should not be considered financial, legal or tax advice.
Consult an attorney or a tax professional regarding your specific situation.

This blog is up to date as of January 2025 and has not been updated for changes in the law, administration or current events.

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