Dave Christensen is the greatest lawyer inside and out.” - Tashee P. - Oak Park, MI
David made sure all of my medical bills were paid for.” - Antonio D. - Livonia, MI
Christensen Law is not an ordinary firm, it's exceptional.” - D.T. - Jackson, MI
They took my case to trial & won me a great settlement.” - H.H Davidson
Most people have an intuitive sense that their insurance premiums will go up if they are in an accident. A recent AA mystery-shopping investigation confirmed those suspicions and the amounts may surprise you.
The study found that a single no-fault claim, even where the driver was clearly not at fault, could increase the driver’s insurance by as much as 30%. This was especially true in smaller insurance companies. While most companies (60%) did not increase the premium, 35% of companies raised their rate by 5% just by adding a single claim.
With 2 claims against them, drivers could expect between a 10% and 50% increase in their No-Fault Insurance premiums. Only 4% of companies still charged the base rate.
So how do the insurance companies justify the increase? Adrian Webb of insurer esure said:
“In many cases no-fault claims can be a proxy for the environment in which you drive. For example, you may drive through certain awkward junctions, an accident blackspot, or be in a certain postcode that suffers from poor signage, all of which puts drivers at risk.”
Basically, the insurance companies say the fact that a person has been in accidents before suggests they are more likely to get into accidents again, regardless of their role in the accident. This is based on the assumption that drivers who get into accidents must drive in areas with dangerous intersections, a high risk of accidents, or poor signs.
Another factor that insurance companies rely on is the loss of “no claims discounts” (NCD). These are premium discounts offered to applicants with no history of accidents. But these discounts can be lost as the result of any claim, regardless of fault.
If you file a No-Fault insurance claim you can expect your insurance premiums to go up – sometimes by as much as 50% – even when you were not at fault for the accident. If you have been injured in a car crash, contact the No-Fault experts at Christensen Law for a consultation.