Should I report my accident to the insurance company
I am often asked, “If I submit a claim to my insurance company will my insurance company cancel my policy or will my rates go up”. The answer is, “not necessarily”. It depends on whether you were ‘at-fault’ for the accident and the number of prior accidents you had in the prior 3 to 5-year period.
If you were NOT at fault
Florida law prohibits insurance companies from dropping a customer or raising the premium for coverages such as personal injury protection (PIP), medical payment (Med Pay), or collision coverage solely because the insured was involved in an accident unless you were “substantially at fault”.
If you were at fault
If you were at fault for causing an accident there is a good likelihood your insurance rate will go up. The amount of increase depends on the insurance company. The average increase in Florida is 35-38%. Some insurers offer accident forgiveness programs, wherein you pay an extra premium in exchange of the insurance company agreeing not to raise your premium after one accident.
Even though your premium may go up, Florida law prohibits an insurer from failing to renew a policy if the insured has had only one accident in which he or she was at fault within the current 3-year period.
Multiple claims – regardless of fault
An insurance company may refuse to renew a policy if the insured has three (3) or more accidents, regardless of fault, during the most recent 3-year period. The amount you pay is related to the risk you pose to an insurance company. Someone involved in three (3) accidents in the past three (3) years [even if you were not at fault for any of them] poses a greater risk (and cost) to the insurance company than someone who has been in zero accidents.
If you are hurt in an accident and need to utilize coverages such as PIP, Med Pay, or UM you should not be afraid to use them simply because your rates may go up. If you are afraid to utilize available coverages, then you may consider dropping those coverages as you are paying a premium for having them on your policy. There are significant reasons why you should report all accidents to your insurance company. I will be happy to provide you a free consultation regarding your accident.
