Auto Insurance Claim

Reader’s Question:

Can my insurance rate increase if I will be hit on the rear and my passengers will be paid by my uninsured/underinsured part of auto insurance?

Zoe

Philadelphia PA

Typically, your insurance rate should not be increased due to uninsured/underinsured motorist claim that you or your passengers will file with your auto insurance company due to an accident that is not your fault. Your insurer will pay the uninsured/underinsured motorist claim because of the negligence of the vehicle that hit you and not because of your own negligence. You did not cause the accident, it was the other driver.

Different states will have different take on this. For example, in Pennsylvania, the law will not allow an auto insurance company to increase your rates if they will pay for the first-party benefit for you. This kind of benefit is not very popular and is only required in Pennsylvania. This kind of benefit is actually similar to medical payments coverage and Personal Injury Protection. The first-party benefit will help you pay for medical expenses if you
and your household members are injured in a car accident. This law will somehow protect the residents of Pennsylvania who is careful and have not been in any accident where in he is at fault.

It is most likely that your auto insurance rate will increase once you get into an accident where you are responsible even at one time only. The increase will not be immediate but when it’s time that you will renew the policy, that’s when you will be surprised with the new price. The rating system of your insurance company and the law of state where you live in will determine the future of your auto insurance policy. If you have not been
in any accident or have not been convicted of any traffic violation there is a big possibility that you insurance rate will not increase.

The biggest factor in insurance rate is determining your risk in getting in an accident. Accidents caused by others is still an accident and the fewer accident you get into the lower your risk is and this will equal to lower payments.