Not Your Fault, No Premium Increase

One of the most common questions I get is whether a person’s insurance premium will increase if they file a claim on their own policy. The answer is a resounding NO.

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 your 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. As you can imagine, a casino is glad to take your money before you win just as much as it is after you win. The odds are always in the insurance company's favor just like a casino.