Many people wonder if their insurance will go up after an accident. Your Personal Injury Protection (PIP) insurance rate should not increase purely because you use the coverage. In Washington State, insurance rates can only increase if you were at fault in an auto accident. For instance, if you were involved in a car accident, and investigations found that you were legally intoxicated at the time of the accident, the insurance company is likely to consider you as being at fault. In a case like this, your insurance rates could likely increase.
What is Personal Injury Protection?
PIP coverage is insurance coverage that will cover your medical expenses and lost income when you are involved in an auto accident. It is not mandatory to purchase Personal Injury Protection, but it is highly recommended that you do so.
If I am at fault in an accident, how much will my PIP rates increase?
How much your PIP rate increases really depends on the company. The company may increase your rates even if this was the very first accident on your record. In Washington, all insurance companies must file their insurance rates with the insurance department, and must also include clear definitions of how they will increase rates when they choose to do so.
Typically, most insurance companies will comply with the Insurance Services Office standard, and may increase insurance premiums according to the schedule. However, rate increases can differ widely from insurer to insurer.
Some insurance companies may slap you with a higher insurance premium for a moving violation, while other insurance companies have policies that will only increase insurance rates when you have been involved in a “chargeable” accident. These are accidents for which your insurance company has paid out a significant amount in damages. If your car is expensive to insure, and you are involved in an accident, you might find your premiums increasing substantially.
Talk to a car accident lawyer to learn what kind of insurance rate increases you can expect after an accident. For advice about insurance companies and what to expect after an accident download our eBooks “Car Accident Secrets Unlocked”, “Bicycle Accident Secrets Unlocked”, and “Motorcycle Accident Secrets Unlocked”.
Understanding how your PIP coverage works can be frustrating. If you have questions about the coverage that applies to you after an accident, call or schedule a free consultation to speak with an attorney at Max Meyers Law PLLC.