Does a Claim with My Insurance Make my Premiums Go Up

February 15, 2017 No Comments by johnmixon

The insurance companies in this country have done an excellent job of scaring everyone into fearing that anything will cause their premiums to increase.  This is simply not true.  If you are in an auto accident and it was not your fault, then your insurance company can’t penalize you for that.  States have  a minimum policy that their residents are required to carry if they wish to operate a motor vehicle.  Typically, that base limit is $25,000 per person per accident for injuries/ $50,000 total per accident for all injuries/ and $25,000 per accident for property damage.  So what if you are hit by a driver who is illegally operating a vehicle without a license?  What if your medical bills are over $25,000?

This is where the concept of ” Un-Insured and Under-Insured” coverage comes in.  Say Driver A causes the accident and he has insurance company X.  Driver B is the non-at-fault driver and has insurance company Y.  Driver B has $ 50,000 in medical bills.  Company X will pay the limit $25,000 and that is it; not a dime more(that doesn’t seem fair does it?).  So where will the other $25,000 come from?  Well if Driver B has language in her policy with Company Y that covers Un or Under Insured drivers then Driver B can claim on that.  That claim Will not cause her premiums to increase!

To claim on this money she must show Company Y that Company X has maxed-out or paid the full $25,000 in liability.  Then Driver B’s company will pay her an additional $25,000 if her bills dictate the need for that additional money.

Additionally, if your insurance agent attempts to convince you to save a few dollars a month by taking “Reduced UM Coverage” you should refuse.  Most laws understand that any un/under- insured coverage is to be automatically accessed in the case of an accident.  However, insurance companies have lobbied certain legislatures to allow for reduced UM coverage.  In a nutshell you may save roughly less than $250 a year on your policy.  However, if you are in an accident you could lose out on $25,000.  Essentially, you would have to keep that vehicle insured with that company for roughly 104 years and one month to save the same amount of money you will lose out on in the case of a catastrophic accident.  That hardly seems fair does it?

If you have been in a car accident, motor cycle wreck, or if you have been the victim of an eighteen wheeler then call John Mixon and Associates at 706-724-9999 or at 1-800-727-1234.  Let us take away the stress of your insurance claim.  Allow us to be “Your Auto Accident Attorneys” today!

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