Your insurance should not go up if you are not at fault in an accident. There is no reason for it to. If you are not driving negligently, your insurer has no basis for increasing your rates. When they raise your rates because you make an uninsured or underinsured motorist claim, they punish you for using the policy you pay for. If your insurer does this in Maryland, you have a right to take it up with the Insurance Commissioner. We have had this happen to our clients in the past, and this is what we advise.
How Insurance Companies Determine Rate Increases
Every day, clients ask us, “Will my insurance go up?” The answer depends on several factors. You may do everything you can to get your insurer to increase your rates, but they will not. Moreover, nearly all insurance companies operate slightly differently. However, there is a set of factors that insurance companies consider when deciding whether to increase or reduce your rates. The first is your claim history. Note that this is not the same as your accident history, though that may be a consideration too. If you have a history of multiple claims, insurers may view you as a higher-risk driver. But more importantly, they will view you as a more expensive driver to insure. Their goal is to maximize their own profits. Sometimes, that happens to align with your goal of having car insurance for a reasonable price. But that is not their ultimate goal.
If you have a record of speeding, that may also increase your premium. Anything that makes you look like a more reckless driver will generally increase your premium because it probably makes you more expensive to insure. With that in mind, we now consider whether your rates will increase if you make an uninsured motorist claim after a Maryland car accident. The answer is no for at least two reasons. The first is that you are not any worse of a driver. Anyone can be a victim of a driver’s negligence. You have not necessarily exhibited anything that displays negligence. Furthermore, as we discuss next, it is against Maryland statute to raise a driver’s premiums for making an uninsured motorist claim when the claimant is not at fault for the accident.
Maryland Laws on Insurance After a Car Accident
Here, we highlight the Maryland insurance laws that dictate how an insurer can treat your rates after an accident.
- Age
- Sex
- Marital status
- Number of miles driven annually
- Driving record
- Credit history
- Purpose vehicle is being driven for (vehicle use)
- The location where the vehicle is garaged
- Driving experience
- Claims history
Judging your insurance rates based on any of these factors is permissible. You may wonder why charging men higher premiums than women is okay. However, this is something the courts have ruled is permissible as law. We do, however, recommend that you premium shop. Some insurers will judge based on factors like the number of miles annually driven or the driver’s experience. This can benefit you if one insurer is willing to offer a better deal for the same coverage.
If your insurer informs you they are raising your rates after you make an uninsured motorist claim, we recommend filing an auto insurance protest or complaint. It is illegal for the insurer to punish you for making a claim under your contract. That is not to say it never happens. However, it is a mistake by the insurer and remedies are available through the Maryland insurance commissioner.
Will my Insurance go up if I am at Fault?
Your insurer will likely increase your rates if you are at fault in a car accident. Insurers will view you as more of a liability. They see that you are a liability on the road, so it will be more expensive for them to cover your mistakes. Of course, this is not a guarantee. There are other factors to consider. For one, your rates may already be very high to account for previous accidents.
On the other hand, if you have a long driving history with zero accidents due to your negligence, your insurer may increase your rates less than if you have only been driving for a few weeks. They may also consider the cost of damages in the accident and the general severity of the accident, when deciding if your insurance will go up.
What to Expect
Your premium may increase. This is one of the most common ways an insurer recalculates your policy. Similarly, your insurer may add a surcharge to your policy. This may be in addition to the premium increase or not. A third option, which is unlikely to happen after one car accident but may if you have been in several, is they may non-renew your policy. This would put you in a precarious position because finding a reputable insurer moving forward will be challenging.
Tips for Avoiding a Rate Increase
The best advice for avoiding a rate increase on your insurance is to drive prudently. This means causing no accidents, not driving aggressively, texting and driving, tailgating, drunk driving, etc. But it also means not to do anything that might cause an accident. If you get a ticket for speeding, your insurer may increase your rates for that as well. Some sources report that your premium will increase by 14% for a speeding ticket. Of course, this is an average and depends on several factors.
If you are in an accident that is not your fault, hire a Maryland personal injury attorney immediately. We will help you get a police report to begin the investigation process and record the evidence. Then, we will start communication with the adverse tortfeasor’s insurer. We will initiate similar proceedings with your insurer if they do not have one. Doing it this way will help them understand that the negligent tortfeasor has no insurance and you have no choice but to use your UM coverage. By handling it in this way, they will provide you more leeway. Again, they should not increase your rates regardless if you are not at fault, but they still do sometimes. Remember, if they raise them despite your prudent driving in an accident, speak with an attorney in our office. We will help you straighten it out.
What to do if Your Insurer Wrongly Increases Your Rates
You must file a report with the Maryland Insurance Commissioner. Per the government website, the commissioner’s job is to “ensure that all insurance laws of the state are faithfully executed by conducting examinations and resolving consumer complaints.” In essence, it is his and his staff’s responsibility to handle the report you file against your insurer should it wrongly increase your premium. Generally, an investigator in the Commissioner’s office will take the lead on your report and do his due diligence to identify and resolve the problem.
Contact an Attorney if Your Insurance Goes up
If you are in an accident and unsure who is at fault, or know you are not, contact our office immediately for a free consultation. It is reasonable to ask, “Will my insurance go up?” However, the law is clear. Call (202) 331-7227 to determine whether your rates will go up and if the law or facts of your case support a personal injury lawsuit against the adverse party.
