This might be the most common question that the law firm gets following a car accident. People are very concerned about their insurance rates rising after a car accident. Common sense suggests that it would not make sense for an insurance company to raise your rates, solely because you were in an accident, like as a pedestrian or even as a driver- not at fault.
Pursuant to 626.9541, a copy of parts of the statute below, this would appear to support the proposition that rates cannot be raised solely for being in an accident unless the insurance company, “unless the insurer’s file contains information from which the insurer in good faith determines that the insured was substantially at fault in the accident.” Further, it should be noted that an insurance company may cancel a policy under which the insured has had three or more accidents, regardless of fault, during the most recent 3 year period.
Generally, when you are involved in a car accident your own insurance is involved BUT their role is small. Your insurance will be responsible for your PIP benefits, i.e. $10,000.00 of TOTAL PIP benefits paying medical bills at 80 percent and wages at 60 percent. Since the PIP is a no-fault system, your insurance has to pay even when someone else is at fault. The remainder of your claim, generally, will be against the other vehicle which is at fault. The point being, that generally where the lawyer gets you money is from the other insurance. Using the other insurance company will not and cannot cause your insurance rates to go up. There are some cases where you own uninsured motorist insurance (if the at fault car does not have ANY insurance) or your under-insured motorist coverage (if the other car does not have ENOUGH insurance) where you would be seeking money from your own insurance company.
It is important to note that every case is unique and should be judged based on the specific facts of the case. The advice in this blog is intended to be general in nature and should not to be construed as specific advice for a case, as a minor difference in the facts of the case could change the result. Also, this blog is, as the web site suggests, based on Florida law and the laws of any other states or even another country could vary from Florida.
Statue listed below:
626.9541 Unfair methods of competition and unfair or deceptive acts or practices defined.—
(1)UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE ACTS.—The following are defined as unfair methods of competition and unfair or deceptive acts or practices:
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(o)Illegal dealings in premiums; excess or reduced charges for insurance.—
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3.a.Imposing or requesting an additional premium for a policy of motor vehicle liability, personal injury protection, medical payment, or collision insurance or any combination thereof or refusing to renew the policy solely because the insured was involved in a motor vehicle accident unless the insurer’s file contains information from which the insurer in good faith determines that the insured was substantially at fault in the accident.
b.An insurer which imposes and collects such a surcharge or which refuses to renew such policy shall, in conjunction with the notice of premium due or notice of nonrenewal, notify the named insured that he or she is entitled to reimbursement of such amount or renewal of the policy under the conditions listed below and will subsequently reimburse him or her or renew the policy, if the named insured demonstrates that the operator involved in the accident was:
(I)Lawfully parked;
(II)Reimbursed by, or on behalf of, a person responsible for the accident or has a judgment against such person;
(III)Struck in the rear by another vehicle headed in the same direction and was not convicted of a moving traffic violation in connection with the accident;
(IV)Hit by a “hit-and-run” driver, if the accident was reported to the proper authorities within 24 hours after discovering the accident;
(V)Not convicted of a moving traffic violation in connection with the accident, but the operator of the other automobile involved in such accident was convicted of a moving traffic violation;
(VI)Finally adjudicated not to be liable by a court of competent jurisdiction;
(VII)In receipt of a traffic citation which was dismissed or nolle prossed; or
(VIII)Not at fault as evidenced by a written statement from the insured establishing facts demonstrating lack of fault which are not rebutted by information in the insurer’s file from which the insurer in good faith determines that the insured was substantially at fault.
c.In addition to the other provisions of this subparagraph, an insurer may not fail 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. However, an insurer may nonrenew a policy for reasons other than accidents in accordance with s. 627.728. This subparagraph does not prohibit nonrenewal of a policy under which the insured has had three or more accidents, regardless of fault, during the most recent 3-year period.
4.Imposing or requesting an additional premium for, or refusing to renew, a policy for motor vehicle insurance solely because the insured committed a noncriminal traffic infraction as described in s. 318.14 unless the infraction is:
a.A second infraction committed within an 18-month period, or a third or subsequent infraction committed within a 36-month period.
b.A violation of s. 316.183, when such violation is a result of exceeding the lawful speed limit by more than 15 miles per hour.
5.Upon the request of the insured, the insurer and licensed agent shall supply to the insured the complete proof of fault or other criteria which justifies the additional charge or cancellation.
6.No insurer shall impose or request an additional premium for motor vehicle insurance, cancel or refuse to issue a policy, or refuse to renew a policy because the insured or the applicant is a handicapped or physically disabled person, so long as such handicap or physical disability does not substantially impair such person’s mechanically assisted driving ability.
7.No insurer may cancel or otherwise terminate any insurance contract or coverage, or require execution of a consent to rate endorsement, during the stated policy term for the purpose of offering to issue, or issuing, a similar or identical contract or coverage to the same insured with the same exposure at a higher premium rate or continuing an existing contract or coverage with the same exposure at an increased premium.
8.No insurer may issue a nonrenewal notice on any insurance contract or coverage, or require execution of a consent to rate endorsement, for the purpose of offering to issue, or issuing, a similar or identical contract or coverage to the same insured at a higher premium rate or continuing an existing contract or coverage at an increased premium without meeting any applicable notice requirements.
9.No insurer shall, with respect to premiums charged for motor vehicle insurance, unfairly discriminate solely on the basis of age, sex, marital status, or scholastic achievement.
10.Imposing or requesting an additional premium for motor vehicle comprehensive or uninsured motorist coverage solely because the insured was involved in a motor vehicle accident or was convicted of a moving traffic violation.
11.No insurer shall cancel or issue a nonrenewal notice on any insurance policy or contract without complying with any applicable cancellation or nonrenewal provision required under the Florida Insurance Code.
12.No insurer shall impose or request an additional premium, cancel a policy, or issue a nonrenewal notice on any insurance policy or contract because of any traffic infraction when adjudication has been withheld and no points have been assessed pursuant to s. 318.14(9) and (10). However, this subparagraph does not apply to traffic infractions involving accidents in which the insurer has incurred a loss due to the fault of the insured.
