Auto accident question

formerlyjessica490 · August 2016

If you get into an accident that is your fault and need to process a claim to repair damage, you are subject to a rate increase or can be dropped by insurance (correct me if I'm wrong), but if you are in an accident that is NOT your fault and you need to place a claim for damage repair, could the insurance company still raise your rate or drop you?

Xstatic3333 · August 2016

formerlyjessica490 said:

If you get into an accident that is your fault and need to process a claim to repair damage, you are subject to a rate increase or can be dropped by insurance (correct me if I'm wrong), but if you are in an accident that is NOT your fault and you need to place a claim for damage repair, could the insurance company still raise your rate or drop you?

I think that rate raises depends on the state, unfortunately. In MA, where I lived for all of my auto accidents, you did not get the rate raised if it wasn't your fault. I was told once by an adjuster that I was chatting with at a party, though, that even if you're not at fault, if you've been in a lot of accidents you can still get dropped. I was pretty concerned about that, and it factored heavily into my decision to get a bright red car that people would hopefully notice before rear-ending. My old Prius just seemed to be an accident magnet, even though it was NEVER my fault.

formerlyjessica490 · August 2016

Ok, so I could probably flat out ask the insurance company then....

julieanne912 · August 2016

Our neighbors were dropped by their homeowners insurance for "too many claims" even though they were all weather related, so nothing they did. They got new insurance no problem somewhere else though. So, I'd imagine the same would go for auto insurance.

Also I doubt your insurance would give you a straight answer if you asked them. They'd never admit to the reasons that they drop people until it actually happens.

formerlyjessica490 · August 2016

ok cool, I was just curious....thanks!

brij2006 · August 2016

I'm an agent in Illinois, so this could be different with different states.

With an at fault accident you can have your rates raised or be cancelled for it. Mostly depends on the severity of the accident as well as additional claims history.
For a not at fault accident, it depends whether or not it was a comprehensive or collision. A "not at fault collision" can still be surcharged depending on what the accident was. If was a hit and run, you likely wouldn't see a premium increase. If it was the 3rd hit and run claim in a 10 year period then these "hit and runs" begin to be suspicious.
A comprehensive claim is an "act of God or nature." So hail damage, hitting a deer, a tree falling on the car, etc. Those rarely get surcharged. However, if you have hit 3 deer within a 1 year timeframe because you drive at dawn or dusk every day near the woods, then you're a higher risk than someone who doesn't. At that point a policy may be reviewed because of too many claims.

My H had hit a deer, hit a dog, had a hit and run in a parking lot, and his brother backed into his car (same policy so was not at fault collision). When I tried to shop his insurance for him the company we moved him to did rate him higher. Even though none of these were his fault, the fact that he had 4 accidents that paid out $1k+each within a 3 year timeframe made him a higher risk client.

I've seen clients have their homeowners insurance cancelled for too many hail/wind claims. Most of those are people who don't keep their property in the best repair. As much as they may not understand why, but when your 25 year old roof that needs replaced, gets hail damage, shingles will break off and it will be damaged much quicker than a 5 year old roof. That's where people can get pretty worked up. Rightfully so because they don't understand it, but insurance is exactly that. Insurance. It is not a maintenance policy.

formerlyjessica490 · August 2016

brij2006 said:

I'm an agent in Illinois, so this could be different with different states.

With an at fault accident you can have your rates raised or be cancelled for it. Mostly depends on the severity of the accident as well as additional claims history.
For a not at fault accident, it depends whether or not it was a comprehensive or collision. A "not at fault collision" can still be surcharged depending on what the accident was. If was a hit and run, you likely wouldn't see a premium increase. If it was the 3rd hit and run claim in a 10 year period then these "hit and runs" begin to be suspicious.
A comprehensive claim is an "act of God or nature." So hail damage, hitting a deer, a tree falling on the car, etc. Those rarely get surcharged. However, if you have hit 3 deer within a 1 year timeframe because you drive at dawn or dusk every day near the woods, then you're a higher risk than someone who doesn't. At that point a policy may be reviewed because of too many claims.

My H had hit a deer, hit a dog, had a hit and run in a parking lot, and his brother backed into his car (same policy so was not at fault collision). When I tried to shop his insurance for him the company we moved him to did rate him higher. Even though none of these were his fault, the fact that he had 4 accidents that paid out $1k+each within a 3 year timeframe made him a higher risk client.

I've seen clients have their homeowners insurance cancelled for too many hail/wind claims. Most of those are people who don't keep their property in the best repair. As much as they may not understand why, but when your 25 year old roof that needs replaced, gets hail damage, shingles will break off and it will be damaged much quicker than a 5 year old roof. That's where people can get pretty worked up. Rightfully so because they don't understand it, but insurance is exactly that. Insurance. It is not a maintenance policy.

Great, thanks for the info!

Auto accident question

Re: Auto accident question

Choose Another Board

Search Boards