WILL MY INSURANCE RATES GO UP AFTER FILING A CLAIM?
The first thing that goes through our minds after an accident, once we check to be sure that we’re fine and that there’s no active emergencies, is mild panic that our insurance rates are going to go up. Insurance isn’t cheap, after all, and you can’t legally be on the road without it, so it’s not exactly a cost you can opt out of.
However, if you’re tugging your hair worrying about how you’re going to pay for higher rates than you already have, take a deep breath, and relax. Because chances are that your rates aren’t going to go up.
NO-FAULT CLAIMS, AND YOUR INSURANCE RATE
Insurance companies use a wide variety of factors to come up with your insurance rate. Everything from your age, to where you live, to what kind of car you drive figures into the number you end up paying for coverage. And while your driving history is a big part of what goes into this formula, it’s important for you to know that only accidents where you are deemed to be at-fault count against you.
That single concept, fault, is what your insurance company cares about. Because if you’re not at fault, then under the law your insurance company cannot increase your rates because you were in an accident. Or, put another way, you can’t be punished for something that wasn’t actually your fault.
Anyone who’s been on the receiving end of an accident already knows this; it’s why your rates don’t go up when someone else hits you, and they’re deemed to be at-fault. However, if you’re in a no-fault accident, and you have to file a claim with your own insurance company, then the result will be the same. If you weren’t at-fault for the accident, then your rates won’t go up.
IF YOU WERE AT-FAULT, THAT’S DIFFERENT
It should go without saying, but if you are at-fault for an accident, and you have to make a claim to your insurance provider, then that is a situation where your rates are definitely going to go up. Because in this case the increase isn’t tied to the accident itself; it’s tied to the fact that you were the one deemed responsible for the accident. That is something your insurer can legally penalize you for, as it shows that you’re a greater risk to insure, and thus you should have to pay a higher rate than someone who isn’t as big a risk.
WHAT DO I DO IF SOMETHING GOES WRONG?
In an ideal world, we could trust our insurance providers to follow all the rules, and to apply the formula neutrally to everyone. However, the truth of the matter is that insurance companies make money by raising people’s rates, and denying as many claims as they possibly can. That is their business model, and it’s where their profits come from. That’s why if you find yourself on the end of a raised rate, you should make sure your insurance company explains where it came from, and why, until you’re satisfied.
Because if you were in an accident that wasn’t your fault, or which was deemed a no-fault accident, then you shouldn’t be paying more for your insurance, even if your provider was on the hook for taking care of the damages. And if your rates when up when they shouldn’t have, you need to make sure you don’t accept that lying down.
For more information on insurance, fault, and when your rates should and shouldn’t increase, all you have to do is contact us today!