LendingTree: 50% of insured Americans avoid filing auto, home claims

Half of Americans with auto or home insurance have avoided filing a claim largely because they fear their premiums would be raised, according to new LendingTree research.

LendingTree says its survey shows auto claims drive most claim avoidance. Nearly three-quarters (73%) of claim avoiders say their most recent situation involved car insurance.

“Claim avoidance can lead consumers to delay other spending (23%), experience financial or emotional stress (20% each), see the damage worsen (18%), or take on more debt (17%),” LendingTree says. “Among those who pursued a non-routine auto or home claim in the past five years, 46% say the insurer paid roughly what they expected, but 33% say it paid less than expected. Meanwhile, 26% had a claim denied, and 27% saw their premium increase.”

Nearly 1 in 4 of those surveyed cite a potential rate increase as a deterrent to filing claims, and 73% who avoid filing claims said they likely would have filed if it wouldn’t affect their premiums, discounts, renewal terms, or future eligibility for coverage.

Other concerns include:

• • “They worried their insurer would cancel or not renew their coverage (15%);
  • “They didn’t want the claim to appear on their insurance history (15%);
  • “They viewed the claims process as too time-consuming, stressful, or inconvenient (15%);
  • “They believed the claim would be denied or only partially covered (14%);
  • “They wanted to resolve the issue privately (13%);
  • “They were advised not to file by an insurance agent, contractor, repair shop, or other professional (13%);
  • “They had another person, company, or organization agree to pay (13%);
  • “They worried about having too many claims on their record (12%);
  • “They didn’t want to share personal or location information with the insurer (10%);
  • “They didn’t know how to file a claim or what documentation was needed (10%);
  • “They were unsure whether the damage was covered (10%); and
  • “Other (3%).”

LendingTree says concern about the long-term cost of insurance is shaping decisions after an accident, storm, or other loss, sometimes with costly consequences.

Based on its newest survey, 84% of Gen Zers with auto or home insurance have avoided filing a claim, versus 63% of millennials, 40% of Gen Xers, and 27% of baby boomers.

Among those who avoided a claim, 34% paid at least $1,000 out of pocket, including 15% who paid $2,500 or more.

“Claim avoiders most commonly handle the issue themselves (29%). Some pay the full cost (23%), opt for a less expensive solution (20%), or skip the repair or replacement entirely (18%),” LendingTree says.

LendingTree also found that 37% of “claim avoiders” regret their decision, while only 16% said they experienced no noticeable downsides. Forty percent said it was the right decision.

“Many people have been feeling financial strains in recent years, and having to cover repair costs after an accident or disaster only heightens this type of stress,” said Rob Bhatt, a LendingTree senior writer and licensed insurance agent. “One thing to keep in mind, though, is that investing in repairs to your car or home helps them retain their value. Some people may find solace in this.”

LendingTree commissioned QuestionPro to conduct the online survey of 2,000 U.S. consumers from Aug. 5-9. LendingTree says the survey was administered using a nonprobability-based sample, and quotas helped ensure it reflected the overall population.

The Zebra’s 2026 State of Insurance report finds that nearly every transportation cost factor for U.S. consumers has increased, adding up to around 17% of Americans’ annual expenses. The report, released in August, shows fuel prices at around $4 per gallon nationwide, a new car at around $50,000 (increasing 3.5% since the same time last year), and the median annual cost of car insurance at $2,079. The report notes that some states are seeing median insurance costs over $3,000.

The annual average cost of full-coverage car insurance is $2,237 nationwide, up 1% since the end of 2025, according to an Insurify report released in August.

AAA’s newest Your Driving Costs (YDC) analysis finds that the average annual cost to own and operate a new vehicle is $12,863, or $1,071.92 per month. The study also found the average cost of a full-coverage auto insurance policy to be $2,098 a year for a personal vehicle driven by a policyholder under 65 years old with more than six years of driving experience, no accidents, and who lives in the suburbs or city.

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