A motor vehicle accident is incredibly stressful and can completely alter the daily routine that you have maintained for years. After an accident you may be dealing with tremendous amounts of stress both financially and emotionally as well as vehicle repairs, and medical bills. If you were a victim of a car accident and you were not at fault, one more piece of added stress you may have is whether or not your insurance company is going to raise your premiums after this accident, even if the accident was not your fault.
Insurance companies deploy many tactics to get as much money as possible from each of their clients, and changing a clients premiums is a common tactic after an accident. Here at LifeLaw Personal Injury as your trusted Utah car accident lawyers, we are here to clarify if they can do this in Utah, as well as what you can do to protect your rights after a car accident.
Understanding Utah’s Insurance Laws and Premium Increases
Here in Utah, insurance companies make their premium assessments based on risk. What does this mean? In short it means that an insurance company looks into several different factors for each driver before assigning them their premium cost, these being: whether or not they have been involved in a car accident (even if you were not at fault for the accident), if they have had speeding tickets or other citations, their gender and their age.
These factors all combine to give an insurance company a picture of their clients risk factor and how much they feel they should charge based on their likelihood of opening a claim. While an insurance company can use these factors to create your starting premium there are limits to what they can change after you have signed your insurance policy.
According to Utah law, insurance companies are explicitly prohibited from raising premiums for drivers who were in an accident and were not at fault. Specifically, Utah Code 31A-19a-210 prevents insurers from increasing their rates due to claims where the insured driver was not found at fault. This protection allows Utah citizens to freely open a claim against your insurance provider after an accident without fear of your insurance rates increasing.
Why Might Premiums Increase After a Not at Fault Accident
While Utah law protects its not at fault drivers, it is not common across the United States where some states may not have any legislation to protect its not at fault drivers from greedy insurance companies. So, why might an insurance company raise your premiums after a not at fault accident?
Uninsured or Underinsured Motorist Claims: If you are in an accident where the driver is uninsured or their coverage does not cover your damages, you may file a claim through your own Uninsured/ Underinsured Motorist (UM/UIM) coverage. Pursuing a claim through this coverage is completely normal and can be incredibly helpful if a driver is not insured in an accident, but unfortunately, your insurer may view you as a higher risk client now as they had to pay out extra money for your case. This could lead to a premium increase.
Multiple Claims: If you have been involved in multiple accidents, even if none of them were your fault, an insurance company might begin to classify you as a higher risk driver. Having a history of claims can be a red flag to an insurer that you are more likely to file a future injury claim, this can potentially impact your rates.
Loss of Discounts: The most common change in your premiums would be due to a loss of discounts after your accident. A large number of insurance companies offer discounts for being “claim free” or a “Safe Driver”. These discounts are for drivers who have not been involved in accidents, and even if you were the victim in a car accident your insurance company may strip these discounts away from you when you are signing your next insurance coverage agreement, which can indirectly increase your premiums.
Policy Renewal Timing: Insurance adjusters will typically retool your rates at the time of your policy renewal. This is when you are most likely to have your risk profile readjusted after you have been in an accident (even if you were not at fault), and you may see a change in your rates.
How Utah’s No Fault System Impacts Premiums
Utah is a “No Fault State”, this means that every insured person in Utah has Personal Injury Protection (PIP) coverage that pays for medical expenses and lost wages to $3,000, regardless of who caused the accident.
Utilizing your PIP and filing a claim should not increase your premiums as it is a standard part of Utah’s no-fault system. However, if PIP does not cover the extent of your injuries and you pursue additional compensation through a third party claim or lawsuit as an at fault driver, your insurer’s involvement could influence your risk assessment.
Steps to Protect Your Insurance Rates After a Not at Fault Accident
If you are not in Utah and do not have state regulations against an insurance company raising your insurance premiums after an accident, take these steps to minimize your chances of premium increase.
- Document the Incident Thoroughly: Make sure that you take plenty of photos at the scene of the accident. Make sure that your pictures include the accident itself, any injuries you may have, and the damage caused to your vehicles. Obtain a police report to establish the other driver’s fault as well, as this strengthens your case with an insurer.
- Report Promptly but Strategically: Most insurance policies require you to report that you were involved in an accident within 24-72 hours. However, consult with a skilled Utah car accident lawyer before you file your claim to ensure that a claim is necessary, as an unnecessary claim may affect your insurance rates.
- Work With a Car Accident Lawyer: An insurance company will try to take advantage of you in any way that they can, whether that is a lack of knowledge of the law or by purposely using stall tactics to minimize contact with you. It can be difficult to manage a claim on your own, and an experienced car accident lawyer can help you through this. Your car accident lawyer will have a strong grasp on the law, and will work to prove that you were not at fault for the accident and try their best to negotiate on your behalf.
- Shop Around for Insurance: If your insurance provider does raise your premiums after an accident it may be time to shop around. Your insurance company may have raised your premiums because you opened a claim against them, but that does not mean your risk profile has changed across the board. Shopping around can ensure that you get the best price and best coverage possible after an accident.
- Consider Accident Forgiveness: Some insurance companies offer accident forgiveness programs, which prevent rate increases after your first accident, even if you were at fault. Check to see if your policy includes this or consider if it is worth adding for future protection.
What to Do If Your Premiums Increase Unfairly
If you are a Utah citizen and your insurance company has unfairly raised your premiums after a not at fault accident it is important to remember, you have options:
- Contact Your Insurer: Reach out to your insurer and demand that you get a detailed explanation of why your rates increase. If they state that your rates increased due to your accident, reference Utah Code 31A-19a-210 to challenge any increase that is tied to a not at fault claim.
- File a Complaint: If your insurer still will not resolve this issue, file a complaint with the Utah Insurance Department against your insurance company. You can file your claim with the department at this link: https://insurance.utah.gov/complaints/
- Consult with a Lawyer: A Utah car accident lawyer can review your case on your behalf and then reach out to your insurance company to challenge these improper rate hikes.
How LifeLaw Personal Injury Can Help You
At LifeLaw Personal Injury, we understand the financial and emotional toll of a car accident. Our team of the best car accident lawyers in Utah are dedicated to protecting your rights, ensuring fair treatment from insurers, and maximizing your compensation from your injury case. We understand how stressful a car accident can be, and whether you are facing stress from medical bills, vehicle repairs, or concerns about your insurance premiums, we are here to help you every step of the way.
Why Choose Us?
Proven Expertise: Our Utah car accident lawyers have decades of experience handling Car accident cases, and know the law inside and out to ensure you get the compensation you deserve.
Free Consultation: Our team of car accident lawyers are always happy to answer your questions and will do so with no upfront costs, so you can get the answers you need without any stress.
No Fees Until We Win: At LifeLaw we work on what is known as a contingency fee basis. This means that we will not make a cent until we can get you the settlement that you deserve.
Don’t Let a Not at Fault Accident Cost You More
You were the victim in a not at fault accident, do not let yourself get victimized even more. By acting quickly, documenting evidence, and working with a skilled car accident attorney, you can protect your rates and focus on your recovery.
If you or a loved one has been injured in a car accident, or have any questions give the legal experts at LifeLaw a call today at 801-206-4002. We are your Salt Lake City car accident law firm here to help you every step of the way.