How Does Personal Injury Affect Your Insurance Rate?

by tylercook on July 24, 2013

Does filing a claim for a personal injury mean that you will have to pay a higher premium from now on? Not all the time, no. There are several factors an insurance company considers before deciding that you are a high risk to the company and slapping you with a higher premium.

Insurance Rates After an Accident

If you suffer an accident that was not your fault, your insurance carrier has no grounds to increase your insurance premium. If, however, you caused the accident in which you were injured, you will have to pay a higher premium from now on. This is the reason why several people choose not to file an insurance claim, especially if the injury is relatively minor

Some insurance companies also look at whether the accident was the first on your record. If you have had the same insurance policy for a long time and have had a clean record, your company may forgive the first accident and decide to keep your premium stable.

Insurance Rates After a Personal Injury

In general, the same principal applies if you suffer a personal injury. If the injury was not your fault, you may be spared an insurance hike. If it was your fault, a decision which is up to the insurance company, you will probably be facing an insurance hike.

The higher the claim you make on your personal injury, the higher the likelihood that you will have to pay an increased premium in the future. You probably won’t have to worry about an increase in your insurance premium if you suffer a minor sprain, but if you suffer multiple fractures you might see your insurance rates climb. In some cases, minor injuries attract a much smaller increase in premium than if they had been major. If you are injured at work, you will probably be covered under the employer’s insurance policy.

Insurance Rates and Number of Claims

If you claim insurance too many times, you will be considered a high-risk person and you may be forced to buy an insurance policy with extremely high premiums. In general, the larger the number of claims you file, the higher the insurance premium you will end up paying. It’s common to see insurance rates being raised significantly after a couple of claims have been filed. Usually, the jump in the insurance rates stays in effect for several years, depending on the company in question.

How to Save on Your Insurance Policy

If you, like countless others, are willing to forego claims on minor policies, you should buy insurance with higher deductibles and lower premiums. The deductible is the amount you have to pay out of your own pocket when you claim your insurance. Higher deductibles generally mean a reduced premium per month. You can save hundreds and maybe even thousands of dollars in the long run if you buy a policy with higher deductibles, especially if you have few to no accidents, or if you pay for the accidents out of your own pocket and save the insurance policy for a major emergency. As always, drive safe and take every precaution when attempting something dangerous. The best insurance claim is the one you don’t have to file.

Byline: George Dehrkoop has dedicated the past 10 years of his life to preventing healthcare fraud and to helping folks navigate the difficult ins and outs of health insurance.




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