Lucas Foust:
Hi, this is Lucas Foust from Foust Law Office, and I'm here to answer a question about insurance and how it works. The question is this, if I make a claim under my own insurance policy, why won't my rates go up? Well, let me answer that question for you.
Lucas Foust:
Insurance claims under your own policy that include a medical claim, in other words, a claim out of the medical pay portion of your insurance policy, as well as a claim under the under-insured motorist portion of your policy, are no-fault or not-your-fault automobile claims. Insurance companies work no different, and I explain this in my book, Abandoned on the Road, they work no different than a roulette wheel at a casino. Here's what I mean by that. Insurance companies, when they issue a no-fault insurance policy do calculations and determinations through an actuary of what risk they're assuming by underwriting or creating the insurance policy. That's a long way of saying it's just odds, it's just simple math, and it is absolutely no different than playing roulette and putting your chips on the number six.
Lucas Foust:
If you've been in a car crash, even if it's not your fault, you may very well have a claim under your own insurance policy. Importantly, if you've been in a car crash and it's not your fault, your insurance premiums cannot go up if you make a claim under your own policy. As a matter of fact, it doesn't make any sense for them to go up. If you or I win at roulette, the roulette dealer is happy to take your money, and the same amount of money the next time you play roulette. The same thing's true if you're involved in a car crash. your rates cannot go up, it'd be foolish for the insurance company to raise your rates. As a matter of fact, it's against the law for them to do so.
Lucas Foust:
To answer this question in more detail, I strongly encourage you to download our book, Abandoned on the Road: A Guide to Insurance Law in Montana. Understand this, at Foust Law Office, we believe that an informed client is a better client.