Will My Rates Go Up If I File A Claim on My OWN Policy?
Hi, this is Lucas Foust of Foust Law Office, and I'm here to answer another quick question. And this question is a question that I receive from people who have been in a car crash, and the question is this, will my insurance rates go up if I file an insurance claim under my own insurance policy? Well, chances are no. As a matter of fact, if you file under one of the sections of your insurance policy that involves no-fault, your insurance rates cannot go up. The only way they can go up is if you're the one at fault for the car crash. Let me explain. When you purchase an automobile insurance policy, if you purchased underinsured motorist, or if you purchased medical pay insurance, and you make a claim under those two sections, your insurance premiums cannot go up if you make a claim. Those are no-fault or not at fault sections of your insurance policy.
Insurance companies set their rates or their premiums based upon the possibilities or probability that someone's going to be in a car crash. One of the factors in these no-fault types of coverages is the fact that if you are not at fault, your premium simply cannot go up. A lot of people come to the office and they're very concerned about the possibility that their own insurance rates will go up if they file a claim under their own policy. Let me tell you this, rest assured they will not go up. If you're entitled to make a claim under those sections of your insurance policy, you have every right to bring a claim under those sections of your insurance policy, and your insurance company cannot increase your rates or your premium. To answer this question in more detail, and to answer other questions, I recommend that you download a copy of our book, Abandoned on the Road: A Guide to Insurance Law in Montana. At Foust Law Office we believe that an informed client is a better client.