WILL CAR INSURANCE RATE GO UP EVEN IF CRASH NOT YOUR FAULT?

Our car accident lawyers saw this information online recently:

As car prices moderate from a pandemic-era surge, insurance has pushed the cost of car ownership higher for many Americans. This week, the Bureau of Labor Statistics showed auto insurance costs last month were 22.2% higher than they were a year ago. This was more than February’s 20.6% year-over-year gain. In fact, March’s rise in insurance costs is the largest gain since December 1976, when prices rose 22.4% over the prior year.

The sticker shock hitting many American drivers is being driven by a rise in accidents and the severity of accidents. The most alarming factor driving insurance costs higher is more severe claims. “In general, the numbers of crashes, injuries, and fatalities are up, and inflation has made the cost of repairs more expensive,” AAA spokesperson Robert Sinclair told Yahoo Finance. Sinclair said motorists developed “bad habits” on the road during pandemic lockdowns, contributing to current behavior. For example, motorists were speeding more (and driving through intersections), seat belt use was down. Likewise, drunk driving arrests were up to near-historic highs.

In response, Travelers increased premiums, especially for customers renewing their policies. In the fourth quarter, its renewal premium price change was a whopping 16.7% in its auto business. GEICO also felt the effects of those rising severity claims. The second-largest auto insurer in America behind only State Farm, GEICO was hit by six consecutive quarters of underwriting losses beginning at the height of the pandemic.

WHY DO YOU HAVE TO MAKE A CLAIM ON YOUR AUTO INSURANCE?

Obviously, we want to do everything possible to keep our auto insurance rates down. One thing to do is avoid causing a car accident. But what if you are the victim of a car accident? In other words, the car accident was not your fault. You may have heard that Minnesota is a No-Fault state. This means that your initial medical bills must be paid by your auto insurance no matter who was at fault. Will your insurance rates go up in this situation? NO. Not if the other driver was at fault. In fact, MN law prohibits insurance companies from raising rates in that situation.

CAR ACCIDENT LAWYERS

Call us if you have been injured in a car accident. Our top lawyers have over 25 years’ experience representing crash victims throughout Minnesota. The initial consultation is free. Further, we will never charge anything unless you receive compensation for your injuries.