Most people are afraid to file an insurance claim with the belief that their policy rates will go up every time. But what happens when the crash isn’t your fault? Should your rates still go up after every single crash? What is the crash itself was completely unavoidable on your part? The wired world of insurance policies is full of questions, and so there are very few that can give definitive answers.
What happens in most situations is that a PIP policy rate will increase in the event that it seems that the driver is now a higher risk for future accidents. Insurance companies set their rates based on how likely it is that you will get into another accident. Now, as people get into accidents, that risk increases.
Truth: PIP Could Go Up With Each Use
Personal injury protection insurance only covers about 80% of medical bills and up to 60% of lost wages. That means that even after your insurance hits its limits, you will always have something left to pay in the way of medical bills, and you’ll always be short from your wage recovery. In Florida, the average PIP premium is $198, and that rate can fluctuate based on how many accidents you’ve had and your credit-based insurance score.
Now there are Florida statutes in place to protect the drivers from insurance companies that might gouge them. One statute states that an accident should not cause an insurance rate to go up unless the driver was distinctly at fault. However, because of Florida’s no-fault system, most insurance claims and police departments have little concern with the fault in an accident.
Myth: Fault Has Anything to Do with Your Rates
In other states, the fault does have a lot to do with how insurance companies determine their rates. However, in Florida, the no-fault system eliminates a lot of the investigative process that follows a crash. A lot of the time, car insurance providers won’t investigate what happened behind the PIP claim. All they are interested in is determining whether the claim is or is not fraudulent and then moving on.
There are a few times where fault can impact your rate in a no-fault state. However, as the victim of a car accident, it’s unlikely that your role will affect your rates in this manner. Car insurance rates will likely go up if you had a reckless driving accident or a DUI. But in those situations such as a DUI or street raising, it’s more likely that the insurance provider would drop coverage.
Can You Fight Your Insurance Rate Increasing?
Typically no, you cannot fight your insurance rate increases because they are a private business and can change their rates as they please. However, it is always worth evaluating if you’re getting everything you should be getting out of your insurance. Often no-fault insurance only covers a small portion of what you need coverage for. For example, no-fault insurance does not cover property damage, for that you would need collision coverage. Additionally, no-fault insurance does not cover damage to anyone else’s property or medical expenses. If you were sued, you would need comprehensive and possibly property damage liability coverage.
Understanding Florida PIP Policy Rates
Policy rates vary from person to person based upon a credit-based insurance score and your driving history. What insurance providers are interested in determining when they set your rate is how likely you are to be in an accident in the future. If it’s likely that you’ll make a claim within the upcoming year, your rates will be higher than if it’s unlikely for you to make a claim.
Contacting a Florida Car Accident Attorney for Full Compensation
Most people don’t expect it, but Florida car accident attorneys take on a lot of car accident claims because of the no-fault laws within the state. In a perfect situation, the no-fault liability would work out where each person would go to their respective insurance providers. Both providers would issue compensation for the damages, and the entire crash would be resolved quickly. That isn’t how car accidents usually happen because car wrecks are messy.
At Winters Yonker, you can rely on a team of well experienced and skilled Tampa car accident lawyers. We can help you understand exactly what should happen with your PIP policy and any other policy that comes into effect as a result of your crash. Our team of attorneys can also breakdown whether it’s possible for you to file a lawsuit for full compensation or further compensation. Call Winters Yonker for support now.