Will My Car Insurance Claim Increase My Premium?

In the aftermath of a car accident, you may wonder if filing a claim with your insurance company will result in a higher premium. When insurance companies set a premium rate, they take into consideration your driving history—the more accidents and driving incidents you have on your record, the more likely it is for the insurance company to set a higher premium. After a car accident, most insurance companies will re-evaluate your rates.

However, filing a claim doesn’t always mean your premium will increase. If you are struggling to navigate the complexities of the insurance process, you should consult with experienced personal injury lawyers. Outlined below are some of the factors that car insurance companies take into consideration after a car insurance claim.

The Severity and Price of the Insurance Claim

The severity of car accidents ranges broadly. Your car accident could be as minor as a simple fender bender or as serious as a multi-car pileup. When deciding whether or not to raise your premium, most insurance companies will use the severity of the incident as a determining factor. Usually, there is a direct correlation between the severity and price of a claim. In most cases, the more serious an accident is, the more expensive the claim will be. If your accident resulted in an expensive claim, it is more likely that your premium will increase.

Determining Which Driver Is At Fault in the Accident

After you file an insurance claim, your provider will most likely review the police report and other essential evidence—such as photos from the crash—to determine which driver was at fault in the accident. In addition, the insurance company will assign an adjuster to your claim who will assess the incurred damages from your crash. Sometimes, the insurance company will decide that multiple drivers were at fault in the accident. If your insurance company decides that you were at fault in the accident, it is more likely that they will raise your premium.

No-Fault Insurance Policies in South Florida

Florida is a no-fault insurance state and requires residents to carry $10,000 of personal injury protection (PIP) insurance. When a state enforces a no-fault insurance policy, it means that in the case of an accident, each driver will pursue a claim with their own insurance company. When you file a no-fault claim with your provider, they may use the total amount in expenses they pay as a determining factor in adjusting your rate.

You Should Always Report an Accident

The fear of increased premiums prevents many people from reporting an accident to their insurance company. However, choosing to not report your accident comes with its own set of risks. Even if the damages of your accident are minor, you should always report it to your insurer. This will ensure you are protected should the other driver decide weeks or months later that they want to pursue legal action against you. If there is no report of your accident, it will be hard for an insurer or lawyer to gather evidence to represent you.

Consult With a Skilled Personal Injury Lawyer in South Florida

Recovering from a car accident can be an overwhelming and emotional experience. After a car accident, it can be challenging to make the decisions and take the necessary actions to best protect yourself in the insurance process. The best way to navigate the complex process of filing insurance claims is to consult with an experienced personal injury attorney.

Robert Baker is a Board-Certified personal injury lawyer with more than 30 years of experience representing residents in South Florida. Throughout the insurance process, you can trust attorney Robert Baker to be your advocate. He has recovered millions of dollars for clients throughout his career and has successfully represented the victims of car accidents.

To schedule a free consultation with one of our trusted attorneys, complete an online contact form or call today at (561) 320-0000.