“I was in a car accident in Pennsylvania. Will filing a claim raise my rates?” Here’s what you need to know.
Key Takeaways
- After an accident in Pennsylvania, insurance companies can’t raise your auto insurance rate if you weren’t at fault. However, your premium may go up due to other factors, like property damage.
- Usually, filing a claim is worth it! Higher premiums and deductibles often cost less than overall damages.
- Before increasing your rate, insurance companies in Pennsylvania must notify you in writing to explain why they plan to do so.
- If an insurer raises your rate without cause, an insurance lawyer can help you review your options.
Will filing a collision claim raise my insurance rates in PA?
If you were at fault, the answer is yes, your auto insurance rate will likely go up. But if you weren’t at fault, there’s nothing to worry about. Thanks to Pennsylvania state law, companies can’t raise auto insurance rates for drivers who weren’t at fault in an accident.
Note that we’re talking specifically about auto coverage here. Full auto coverage usually includes liability (to cover damages sustained by other people), comprehensive (to cover damage caused by something other than a crash, like storm, fire, or theft), and collision (to cover damage to your vehicle).
However, you may pay for other types of insurance alongside your auto policy, including medical or property coverage, where different rules apply. For example, after paying a crash-related medical claim, your insurer can’t raise your medical rate, no matter who was at fault.
When it comes to property damage, the law is a little more complex. Your rate may go up whether you were at fault or not, except in one scenario. The law says your insurer can’t raise your property damage insurance rate if two conditions are met: First, you weren’t at fault. And second, your insurer managed to recover at least 60 percent of the property damages it paid. The good news is that your insurer will almost certainly attempt to recover property damages from the offending driver’s insurance company.
Is filing a claim worth it?
Filing a claim is usually very worth it, no matter how minor the accident. Since mechanical or medical issues may not be immediately apparent, you should treat every incident as if it has the potential to do serious damage to your savings account!
Why did my insurance rate go up?
In Pennsylvania, insurance companies are required to notify you of any rate increases. To adhere to the law, they also need to explain, in writing, why they’re raising your rates. So while the reasons for higher rates will vary from case to case, you shouldn’t be left in the dark about what happened!
Can I contest a higher insurance rate?
If you believe your insurance company has unfairly (or illegally) raised your premium, you should present your case to your insurance rep. Gather evidence — including police reports, witness statements, and photos — to help back up your argument. An attorney can help review your case and go over your options.