Car Accident Insurance Company
Reader’s Question:
Is there a law which says that a car accident insurance company can increase your premiums because of an accident?
Michelle
Dallas Texas
Insurance companies have to comply to policies that require them to file their rates and rules in coordination with the state regulatory bodies such as the Department of Insurance. For car accident insurance companies, they are entitled to make extra charges to those individuals they call “high risk”, an example would be those who have been on an accident, those who has numerous violation charges and also those who have made claims contrary to their policy. So, basically there is no rule or law for that matter that allows an insurance company to increase their rates after an accident took place. It all depends on how the policyholder is well aware of the filing and passing of the rates to you after the accident.
As a consumer it is rightfully yours to choose your insurance company wisely, who will not take advantage of their high premium rates but also feed you with denials to your claims instead of providing you with insurance when it is most like needed. So try to compare the rates and services that each company provides and select the one that fits your need the most.