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.