I’m often asked whether making an auto accident claim will cause an increase in my insurance premiums.

Well, the answer is no.

According to Florida law, your car insurance should not go up after a crash, unless you were “substantially at fault.” Florida Statute Section 626.9541 states that an insurer cannot raise your premiums for liability, personal injury protection (“PIP”), medical payments coverage, or collision coverage solely because you were involved in a motor vehicle accident, unless your insurer believes in good faith that you were “substantially at fault” for causing the crash. While the statute doesn’t define “substantially at fault” it can be reasonably deduced that it means being greater than 50% at fault.

If you were substantially at fault for the accident, based upon the insurance company’s investigation, your insurer will likely see you as a higher risk. Insurance companies are risk averse and they will raise your rates to account for the increased risk. Also, if a claim is made against your liability coverage, your insurance company may increase your premiums to recoup some of their losses.

The factors determining how much your rates may increase are your prior driving history, and the type of claim you or the other driver submitted. Claims can involve property only or both bodily injury and property. The severity of the accident and the extent of damages will also affect the amount of money the insurance company needs to recoup following an accident.

Even if you are not at fault, an accident can influence your policy. Frequent accidents within a set period can affect your premium, or even cause you to lose your coverage. Florida law provides that an insurer may not fail to renew a policy if the insured has had only one accident in which he or she was at fault within the current 3-year period. However, this does not prohibit nonrenewal of a policy under which the insured has had three or more accidents, regardless of fault, during the most recent 3-year period. If your insurer wrongfully raised your rates after an accident caused by another driver, we can help you prove your insurer is acting in bad faith. We can also help you recover the compensation you deserve after suffering injuries because of another driver’s negligent behavior.

For more information about how a Florida motor vehicle accident may affect your insurance coverage, contact us, today.