Making A Claim On Your Own Insurance Policy - Will Your Premium Go Up?

The answer to that question is probably not. Obviously in life there are no immediate certainties but the truth of the matter is if you’re in a car accident and it’s not your fault and you have to make a claim on your insurance policy, for the most part your insurance company is more likely than not – they’re not going to drop you from your policy and they’re not going to increase your premium for the simple reason that you weren’t at fault for the wreck.

I find that this is one of the primary anxieties that I encounter when dealing with new clients who have just recently been involved in car accident cases and specifically the scenario that I’m talking about is where you have someone who has been in a significant wreck. They’ve got significant injuries, broken bones or otherwise. Significant exposure in the sense that their emergency room bills are in the tens of thousands and then you find out that the defendant has $25,000 in coverage.

So now, you’re going to get the money from the defendant but you’re going to have to turn around and you’re going to have to go back to your own under-insured motorist coverage and then people become worried. OK. Well, if I make a claim on my under-insured motorist coverage, is this in fact going to either affect my overall premium in the sense that I’m going to be paying more next year or is my insurance company going to drop you entirely for actually making a claim?

Again the answer is a provisional no. Typically not. They shouldn’t be doing that and in that sense, I’m here to lay your concerns. If in fact it’s needed, you should definitely use your under-insured motorist coverage or your UM because at the end of the day, those injuries and that potential permanent injury is something you’re going to be living with forever.

You pay those insurance premiums for a reason. There’s a reason why you carry it on your car.

If you've been involved in an auto accident or have questions, I would strongly encourage you to contact The Hartman Firm at 843-300-7600.