Still Paying High Insurance Premiums after No-Fault Insurance Claims


Drivers knew that by avoiding accidents or moving traffic violations, they can save money on their auto insurance premiums. In general, this assumption is true and in fact, all insurance companies will encourage you to be a safe driver to enjoy these benefits. Motorists call it proactive driving and instead of doing some silly stuffs and crazy stunts on the road, they do the other way around, taking care not to over speed, don’t use their mobile phones while driving, don’t drink and drive, and so forth. Others even take driving lesson programs or refresher courses just to tell the insurance company, that “Hey! You can’t charge me with that, I’m a safe driver.”

When these drivers are caught in an accident, the at-fault driver is usually the other party. Our normal assumption would be is that the insurance premiums won’t be affected, after all, the driver did his best to avert the accident, but it just happened, and it’s not his fault. Well, this premise isn’t entirely correct because no-fault accidents could still mean an increase of insurance premiums. Here’s why:

When your insurance company computed your premiums, they are based entirely as to how your insurer has assessed your risk level. In other words, if you have traffic violations or insurance claims in the past, and today you got into an accident where you’re not the at-fault driver, you could still end up with an increased premium. Your insurer relies with accident patterns and as far as they are concerned, this is just one of those.

No matter who’s the at-fault driver during the accident, it only shows the insurance underwriter that you are bound to accidents. Keep in mind that insurance works its way up by analyzing the statistics and not some personal evaluations.

Yet another reason why insurance premiums could increase even if you are not the erring driver happens when your insurance company has to pay for the incurred damages. This is the case if you have an uninsured / underinsured coverage. Typically, this coverage will protect you from collision from a driver with no insurance coverage all or the insurance limits aren’t enough to cover for the expenses.

Some policyholders find it unnecessary or costly, but it’s worth nothing that it’s a valuable investment. The fact that many motorists drive their cars with limited or no coverage at all, this coverage has been proven adequate and a lifesaver.  The insurance company still sees it as a loss in their bottom line, which might provoke them to increase your premiums subsequently.  Even if you were not seriously injured and needing hospitalization, they still would need to spend for your car repair due to the collision.

There is no one size fits all approach in auto insurance. All policies are issued based on the individual’s needs and the underwriter’s assessments. These are all based upon the company’s terms and conditions too. These terms could change or fluctuate anytime, so as a policyholder, it’s your duty to review all the details about your policy. If you suffer an increase in your premiums, it doesn’t mean that you are being overcharged. It could mean that the risk assessment has changed; hence, the increase is inevitable. It is therefore important to keep a watchful eye with your policy and coverage details to make sure that what you are enjoying is the best price you deserve.