Reader’s Question:

Is there a law or something that says an car insurance company can increase your car insurance premiums due to an accident?

Mark

Boise, ID

Car Insurance providers are required to file their car insurance rates and rules with state regulatory bodies such as the Department of Insurance. In most cases, they impose a charge ‘points’ or surcharge to motorist who have been charged with an accident and/or who have made a claim against their auto insurance policy.Therefore, there isn’t a ‘law’ that dictates that an insurance providers can raise your car insurance premiums because of an accident. It’s just a matter of how the auto insurance rates are filed and passed on to you as a result of an accident.

Tags: auto insurance premium, car insurance rate

Reader’s Question:

Does SR22 has anything to do with age?

Bill

Portland, ME

While the reasons that an SR22 financial responsibility form requirement differ from state to state, age is not one of the factor that usually has anything to do with the need for this form of financial responsibility.

Generally, an SR-22 is required when insurance is provided to a person who was in an accident or was convicted of a moving violation and was unable to show financial responsibility. Each state has different variations of this certificate and the associated insurance requirements.

An SR-22 is required in many states as part of the reinstatement process after suspension, revocation or cancellation of driver’s license. This can include suspension for being a habitual offender of traffic infraction, DUI conviction or because of being behind in child support payments.