August | 2025 | Focus on Personal Finance, 2024 Release

It depends on the type of claim and how many you file. But, yes, your home and auto premiums can go up if you file claims. You could also lose any discounts you’re getting for being claim free.

What counts as a claim?

Home and auto insurance companies can raise your premium for filing most types of claims. Auto companies can raise your premium if you’ve had accidents or gotten traffic tickets.

Home and auto companies can’t charge you more for:

Claims you file that the company didn’t pay. This includes claims the insurance company denied because your policy doesn’t cover the damage.
Calling your company or agent to ask questions about your policy or the claims filing process.

Home companies can’t charge you more for:

Claims for damage from natural causes, including weather.
Appliance-related water damage claims, if the repairs have been inspected and certified, unless you have three or more claims in three years.

2. Consider your deductible
Before you file a claim, find out how much your deductible is. The insurance company will subtract the amount of your deductible from your claim payment. Also get repair estimates. If the cost of repairs is about the same or less than your deductible, you may decide it’s not worth filing a claim. Learn more about deductibles.

3. Know your claims history

Insurance companies use your claims history to decide if they want to sell you a policy and how much to charge you. Most insurance companies get a report from the Comprehensive Loss Underwriting Exchange (CLUE) to learn your claims history. Because most companies use CLUE, they can learn about home or auto claims you’ve filed, even if the claim was with another insurance company.

For more information, click here.

Teaching Suggestions:

Ask students if they or their family members filed any home or auto claims with rheir insurance company. If so, what was their experience?
Ask students if the insurance company raised their premiums or cancelled their insurance coverage.

Discussion Questions:

Why is it important to consider your deductibles before filing a home or auto insurance claim?
Why do insurance companies use your claims history to decide if they want to sell you a policy or much to charge you?

Artificial intelligence (AI) is influencing every aspect of life and learning. A vital skill when using AI is creating prompts to obtain valid information for your specific life situation. When creating an AI prompt, be sure to:

specify desired length, style, format, reference dates, reading level.
identify intended use, purpose, and audience.
begin with action verbs: create, design, explain, compare, summarize
split complex requests into subtasks and subproblems.
include examples and background information for context.
avoid complicated or unusual words.
submit follow-up requests to verify, clarify, and expand results.
ask for references from resources consulted.

Some suggested AI prompts to guide your financial decisions include:

Budgeting: “Help me create a monthly budget. My monthly take-home pay is [amount] with these fixed expenses [list items, amounts]. I have monthly variable expenses of approximately [amount]. I plan to save at least [amount] each month for [financial goal] in [number] years. Suggest budget categories and amounts.”

“My variable income averages about [amount] each month. I have fixed monthly expenses of [amount]. What actions are suggested to plan for taxes, savings, and variable expenses?”

Banking Services: “Suggest a bank or credit union that minimizes fees and provides appropriate payment, savings, and loan services. I am a [describe current life situation] with a monthly income of [amount].”

Taxes: “I plan to move to [state/country], my current annual income is [amount]. What factors should I consider related to potential tax obligations in this new location?”

Wise Credit Use: “Each month, I use my credit card for several purchases, and always pay off the balance. How will this affect my credit score? What additional actions would help me build my credit score?”

Insurance: “I’m currently [age] and [marital status] with [number] dependents. My income is [amount]. What amount of life and disability insurance should I consider? What would be an appropriate amount to pay for this coverage?”

“I currently drive a [year, make, model] vehicle, and am paying [amount] a year for auto insurance. What actions should I consider to review my coverage and reduce my insurance payment?”

Housing: “My monthly income is [amount], I pay [amount] in monthly rent, and have [amount] saved for a down payment. How should I determine if I can afford closing costs and long-term homeownership expenses?“

Buying a Car: “I’m considering a used [year, make, model]. I’m able to afford [amount] for this purchase. What factors should I consider before buying this vehicle?”

Investing: “I’m [age] with an annual income of [amount]. I’ve saved [amount] in an emergency fund. Now I would like to start investing for [goal] to be achieved in [number of years]. What investments should I consider?”

Retirement Planning: “I’m [age], self-employed, and earn [amount] a year. What options do I have available to save for retirement?”

Wise Shopping: “I’m planning to buy [item, model, other details] with a budget of [amount]. What actions would result in getting the best deal, strong customer service, and a good warranty?

Avoiding Consumer Fraud: “When researching and buying [describe product or service] online, what actions should be taken to determine if an offer is genuine and to avoid being scammed?”

Wealth Creation: “Based on my current key skills of [list 3-5 strongest abilities], suggest three unique actions to use my existing skills to increase my income. For each action, suggest specific steps to implement the action and estimate the potential financial benefit.”

Despite every effort to obtain valid AI responses, be aware of these potential drawbacks:

Responses may possess bias and include flawed logic.
Incorrect facts or results not based on current financial data.
Inaccurate calculations and erroneous predictions.

For additional information on AI prompts for personal finance, go to:

Teaching Suggestions

Have students create and use an AI prompt to obtain guidance for a financial decision. Compare the response received with other sources (online search, information from friends or relatives).
Have students talk to others to obtain ideas on how AI is being used for financial decisions.

Discussion Questions

What features of AI might be most useful to help people improve their financial planning activities?
Describe actions a person might take to evaluate the validity of an AI response.