When a car accident happens, many thoughts may run through your mind. Once you calm down and realize you are fine, worries about money and what this accident can do to your insurance rates may quickly creep in.
Many drivers hesitate to file a claim, fearing that their insurance rates will spike as soon as documentation is received. However, that is not always the case. Filing a claim with your insurance company is not always the worst choice.
We have asked attorney, Alaina Sullivan, about what you should do. Here is what she had to say.
It All Depends
Like so many things with the law, nothing is black and white. Many factors play into whether your insurance rates will go up following filing a claim. These factors include the insurance policy you hold, the company you use, the severity of the accident, the party at fault, and your driving record.
No-Fault Insurance
If you reside in one of the twelve states that have no-fault insurance policies, you have no choice but to file a claim with your insurance company, regardless of which party is at fault in the accident. Depending on your insurance company and the facts listed below, your insurance rates may increase, at least temporarily.
Seriousness of the Accident
Your insurance company will look at the facts of the accident first. How much damage resulted from the incident? Are we looking at a mere scratch or is your car totaled?
If the car accident resulted in serious property damage to your car, the insurance company will likely have to pay more in terms of a payout than if you only had a small dent. The more they have to pay, the more your rates will increase.
The Party to Blame
If you were not at-fault in the accident, your insurance company may not increase your rates. However, if the car accident was due to your negligent behavior, your insurance company may increase your premium.
This is not to say that there’s any certainty about whether or not your premium will rise. If the insurance company believes you are still a potential liability to the company and are more likely to get into a car accident, your rates may still increase.
Your Insurance Company and Your History
Every company has its own rules and policies. Not all companies react in the same manner as others when claims are filed. In addition, not all policies are the same within that same insurance company. Some companies will increase your premium if any claim is filed, even if it is a minor accident or it was not your fault.
Other companies may not raise your rates if the damage was minor or you were not at fault. In addition, many companies will give you a break if this is your first accident or you hold a good driving record.
Many companies offer an accident forgiveness policy to help protect you in these types of cases; this keeps your rates from unfairly skyrocketing.
Filing a Claim
Filing a claim is always recommended when you get in an accident. Even if your insurance rates increase, this increase is not permanent.
Positive aspects do exist for filing a claim, including allowing you, as one of the parties, to present your side of what happened by having your insurance company investigate what happened.
If you have any concerns at all, review your policy and bring it to a personal injury attorney’s attention to see what the consequences will be.
Contact an Attorney Today
If you have been involved in a car accident and are unsure of whether you should file an insurance claim, it is always recommended you contact an attorney to discuss your case if you do not currently have a lawyer.
A licensed personal injury attorney will be able to evaluate your case, determine if you have a claim against the other party’s insurance company, and help you prepare your claim. To receive the proper compensation for your medical bills, property damages, and pain and suffering, you should speak with a personal injury attorney in your area today.
