Does Your Insurance Go Up After a Claim That is Not Your Fault?
Table of Contents
Key Takeaways
- Florida requires drivers to carry PIP insurance, which provides an initial level of coverage after an accident based on their own policy.
- It may still be possible to file a claim against the at-fault driver.
- Costs in car insurance may go up after an at-fault accident, though state law limits the ability of the insurance company to raise rates in a no-fault accident solely due to the accident.
- Klotzman Law Firm provides extensive guidance to victims.
When you are in a car accident, life changes quickly. You may have missed work, have medical bills that are growing, and you are struggling with the toll of the incident on your body and mind. The last thing you think about is the impact this accident may have on your car insurance costs.
Does your insurance go up after a claim that is not your fault? It could, and there are several factors to consider before you settle any claim with the at-fault party. At Klotzman Law Firm, we strive to educate and support our clients through even the most challenging legal matters.
Understanding No-Fault Car Accident Claims
Florida is a “no-fault” car accident state. This means that after a car accident, you will file a claim against your own insurance policy to seek compensation for medical bills and lost wages. This is the first step in recovering damages.
No-Fault Benefits and Car Accident Claims
Drivers in Florida need to purchase personal injury protection (PIP) coverage. This policy provides at least $10,000 worth of coverage after an accident, regardless of who is at fault.
In some car accidents, these policies do not offer enough coverage to meet all of your needs. If you are in an accident where you have significant or permanent injuries, you can file a claim for additional compensation against the at-fault driver. This may include pain and suffering.
Another important factor is negligence. The state follows a modified comparative negligence law. This means that, as the victim, you can recover damages even if you have some fault in the accident. However, if you are deemed more than 50 percent at fault for the accident, you will be barred from recovery of damages. Be sure you file a police report after your accident if the damage is $500 or more. This is a legal requirement.
Timing matters. You have 14 days from the date of the accident to file a PIP claim. The state also has a two-year statute of limitations that applies to victims seeking compensation against the at-fault party in the court system.
Related Article: Can Your Miami Accident Attorney Help if the Insurance Company Denies Your Claim?
Will an Accident Increase My Insurance Premium?
Several factors contribute to when an insurance provider is likely to increase insurance premiums. Note that it is always up to the car insurance companies to make this decision (there is a law governing when auto insurance companies can raise rates):
- You were at fault: A rate increase is likely to happen if you were at fault in a car accident. Some companies have accident forgiveness.
- You were not at fault: Although auto insurance rates are less likely to increase after a not-at-fault accident, they could still increase.
- Severity of the accident: The value of the claim and your driving history play a role in whether rates may increase.
How At-Fault Vs. Not-At-Fault Accidents Affect Car Insurance Rates
Car insurance premiums are likely to rise if you are at fault for an accident. You present more risk to the company, and therefore, they may raise your rates.
Insurance companies view policyholders’ risk based on past incidents. Even if you are not at fault in this accident, if other factors play a role, the insurance company may view you as a higher risk for additional claims in the future. This could lead to a premium increase. That includes being involved in multiple not-at-fault accidents as a motorist.
What Happens if Both Sides Are at Fault in an Accident?
In situations where both parties carry some blame, you can expect your car insurance policy to cost more in the future. Most often, a driver that is “substantially at fault,” or at least 50 percent at fault, will see a rate increase, as noted in Florida Statute 626.9541.
This statute prohibits insurance companies from raising rates unless substantial fault is established. Therefore, if a driver is found to be less than 50 percent at fault, their premiums should generally remain unaffected.
Factors That Can Affect Your Insurance Rate After a No-fault Car Accident Claim
In a no-fault claim, your insurance adjuster will review your policy and the accident to provide you with compensation as allowed under the policy. The insurance company may review your coverage after that point, often before your policy is set to renew.
Several factors may lead to a rate increase, even if the driver was not at fault.
Driving History
A driver’s previous accidents or claims history can result in insurers perceiving them as a higher risk, potentially causing their premiums to rise.
Insurance Company Policies
Different insurance providers calculate rates using different methods. Some may increase rates after a no-fault accident, while others may not.
Claim Filing
Filing a claim, even if it is non-fault, can sometimes increase rates, particularly in cases involving uninsured drivers or hit-and-run incidents involving property damage.
Substantial Fault
Under Florida Statute 626.9541, rates may increase if an insurance company determines that the driver was “substantially at fault” (meaning they were 51 percent or more responsible for the accident).
Severity and Cost of the Claim
The overall cost and severity of the claim are significant factors that can influence whether an insurance premium will rise.
Other Factors
Insurance companies consider many factors when offering quotes or renewing policies. These include whether this is your first accident, your credit score, the value of your car, and where you live.
How Long Does an Accident Claim Affect My Car Insurance Rate?
Most often, you can expect an impact for three to five years. However, note that higher rates are attributed to those who are involved in risky accidents, such as DUI cases, reckless driving, or other at-fault claims.
Some companies have a safe driver program to reduce costs. Others offer accident forgiveness as a way to reduce the risk of increased insurance costs after an initial claim.
What Should I Do if My Insurance Company Wrongfully Raises My Insurance Rates?
If you believe an insurance company unfairly raised your rates, contact our firm for a free consultation with a car accident lawyer.
You have the right to challenge rate increases through a formal complaint. You can require the insurance company to provide proof of fault for the accident or other justification for the cost increase.
If the insurance company fails to do so, you can file a formal complaint with the Florida Department of Financial Services (DFS), Division of Consumer Services, which handles insurance-related complaints. This process does not require an attorney, but you can always contact our legal team for guidance and mediation with DFS.
Related Article: Tricks That Insurance Companies Use Against Miami Car Accident Victims
How Can Accident Forgiveness Help With an Insurance Rate Increase?
Some insurance companies offer accident forgiveness as a feature of their insurance products. This feature reduces the risk of your first accident, leading to a higher rate. If you want this feature, contact the insurance company to add it. You cannot add it after an accident with that insurer.
How Accident Forgiveness Works
Accident forgiveness protects you from a negative report on your driving record. Even in a no-fault accident, that accident is noted in your record and may play a role in increasing rates later. With accident forgiveness, that does not happen.
Tips for Preventing Car Insurance Rate Increases After a Car Accident
There are various ways you may be able to reduce the costs associated with an increase in a driver’s insurance:
- Review your coverage: Review your policy annually to ensure you have the proper types and amounts of coverage and avoid being overinsured.
- Maintain a clean driving record: Maintain a clean driving record by avoiding accidents and traffic violations.
- Improve credit score: In many states, including Florida, a better credit score can lead to lower insurance rates. Paying bills on time and reducing overall debt can help improve a driver’s credit score.
- Increase deductible: Raising the deductible can substantially lower the premium, potentially saving hundreds of dollars annually.
- Shop around: Comparing quotes from different insurers helps the driver get the best rate for their current circumstances.
- Leverage discounts: It is beneficial to inquire about available discounts, such as multi-car, good student, or usage-based insurance programs.
Why Choose Klotzman Law Firm?
Klotzman Law Firm is a community-focused law firm. We are here to help you. We work with you, your insurance agent or adjuster, and the at-fault party to maximize claims. Let us become your advocate. With years of experience, we know how to handle the challenges you are facing.
Testimonials
“Scott is probably the nicest and most empathetic lawyer I’ve ever met. But make no mistake- under that genuinely kind exterior lies a pitbull mentality that you want on your side when you feel the odds are stacked against you. Run, don’t walk to Klotzman if you need representation. His level of professionalism and candor is unmatched.” — Parker J.
“At a time when things feel like you need help, Klotzman Law will be the ones to make it happen. I cannot express how grateful we are to have Scott represent us. The office staff are an incredible group of people. Do yourself a favor, if you’re in an auto accident, call this firm!” — Dawn A.
“Never having been in a serious accident, I was concerned that I might be taken advantage of regarding my injury by the insurance company representing the individuals involved in the accident. Klotzman Law took over my case immediately and remove the stress of dealing with insurance companies. They provided me with updates throughout the process. I would highly recommend Klotzman Law to anyone looking for a law firm with your best interest in mind.” — Ashley W.
Insurance Claim Crossroads? We’ll Show You the Way.
The car accident attorney at Klotzman Law Firm recognizes the difficulties that arise when dealing with insurance claims. With our extensive experience, we proactively manage claims, prioritizing exceptional customer service to deliver a stress-free experience. If you are hurt in a car accident and wondering if you should file an insurance claim, call Klotzman Law Firm for a free consultation. You can reach us by calling 786-823-3635 or filling out our online contact form.
Frequently Asked Questions
Insurance companies review your policy and the claim you submit to them after an accident to determine the value of the accident. They will take into consideration damage, medical costs from bills you have, and other data to support your claim.
This leads to an initial settlement that you may be able to negotiate. Once both parties agree to a fair settlement, the claim is then paid to you, usually within 20 days of approval.
If negotiations fail, you may be able to appeal the claims process and file a lawsuit against other parties based on the situation.
In an at-fault accident, rate increases can range significantly, from 22 percent to 77 percent, depending on the insurer. The severity of the accident and associated claim costs also play a role, with more severe incidents potentially leading to more significant rate increases. In a no-fault accident, rates are not likely to increase solely as a result of filing a claim.
Depending on the severity of the accident, a car accident can remain on an individual’s driving record for three to five years.
You must report a car accident with $500 or more of damage to local law enforcement immediately after the incident by calling the police at the scene.
If law enforcement doesn’t respond, a crash report must be filed with the Florida Department of Highway Safety and Motor Vehicles within 10 days of the accident. While Florida law requires reporting the accident to the insurance company “as soon as possible,” it is advisable to do so within a few days. To claim personal injury protection (PIP) benefits, medical treatment must also be sought within 14 days of the accident.
You pay for insurance to help you cover costs. Determining if you should file a claim may vary depending on your reasons. If your claim would be more than your deductible, filing a claim may not be beneficial.
