My Auto Ins comp increased my premium from an accident and the case is still open. What do i do to stop this?

Question

Is there a law against this? The case is still open pending statements that the adjuster needs to get plus supplimental police reports. I am suppose to renew Aug 02.2008 but cannot afford the new premium (which went up by $1000). They offered me a refund after i renew if they found the accident at no fault towards me. I just dont believe thats the way it suppose to be done. Anyone can help?

Answer 1

They can do it, it is legal.  If you don't like it About all you can do is shop for new insurance

Answer 2

No law against this. If you don't like the rate, you don't have to pay it. You can always drop the policy and get covered with another company. Make sure you have new auto insurance coverage with another company before dropping any policy. If you have already paid the policy, then the insurance company will reimburse you the money owed to you for the remainder of the policy not under coverage. However, you are going to find increased rates with any company after an accident. This is just standard policy in auto insurance. Once a driver has

an accident or a ticket on their driving record they are a higher risk to insurance companies.

Answer 3

This is common practice and not illegal.  All companies file their rates with the states the write in & all the states that I know of allow it.  If liability in an accident is not yet officially determined (they have not yet collected money back from the other carrier) and they paid over a certain amount of money due to the accident (in my state $1000 for most companies $2000 for some), they will surcharge you until subrogation (collection from the other company) is successful.

Then, they will go back & refund you all the additional premium paid, even if it is over more than one policy term.  They do this because if the accident for some reason is found to be your fault (the other company denies liability & will not pay), they will not be able to go back & surcharge you.  They would have to wait until the next renewal.  Most companies surcharge for accidents for 3 yrs & if it takes over a year to settle the case, they lose over a year (maybe 2 if an annual policy) of surcharges.