Insurance carriers want you to believe that if you use the medical pay portion of your own insurance policy, or if you file a claim under the Underinsured Motorist portion of your policy, your rates will increase. This is a lie!
An insurance carrier may not increase your premiums for filing an insurance claim under the medical pay, underinsured motorist, or uninsured motorist portions of your policy. These policy provisions are based on a no-fault situation. If you did nothing to cause the collision, the insurance carrier cannot increase your premiums. This is because insurance carriers hire actuaries and assume a known risk. Because you did nothing to cause the automobile collision, making a claim under these portions of your policy cannot be used against you when determining an appropriate premium after you make a claim.
If you think of insurance as legalized gambling, this law makes complete sense. It would make no sense for a roulette dealer to force you to increase your bet after you won. You would look for another casino if the dealer did this and a casino is always glad to take your money both before and after you win. The odds are always in the insurance company’s favor just like a casino.
I invite you to read the following article: www.bbc.com/news/business-38905963. The author raises an excellent question: Why is insurance good but gambling is bad? Insurance companies are no different, no better, and no worse than casinos. The odds are always in their favor. The government requires you to play a gamve of chance. Insurance companies, like Allstate are now paying as little as 40% of the funds they receive on claims. Insurance was created to benefit a community by spreading risk, not to allow companies to reap massive profits.
To learn more about the claims process and to become informed as you go through the insurance gauntlet, I encourage you to visit our guides, videos, and other educational material. Everything in our library is completely free.