Will Your PIP Insurance Go Up After A Florida Car Accident?

It is common knowledge that one of the factors that determine your insurance premium is how often you get involved in car accidents. With Florida’s no-fault law, each motorist’s Personal Injury Protection (PIP) insurance pays for their damages regardless of who is at fault, one of the most common concerns of Floridians is if their premium will go up even if they were not at-fault for the car accident they were in?

Florida’s Unfair Methods Of Competition And Unfair Or Deceptive Acts Or Practices

Florida Statutes 626.9541 prohibits insurance providers from increasing a policy holder’s premiums simply because they were involved in an accident. The statute specifies the conditions under which the company may increase a policy holder’s premiums. For one, they must prove, in good faith, that the insured was substantially at-fault for the accident. Thus, if the company raises your premiums without such proof, they are essentially breaking the law.

In addition, the insurance company may not cancel or refuse to renew an insured’s policy after they have been involved in an accident. This is only allowed if the policy holder has been involved in 3 or more accidents within 3 years. In such a case, fault is no longer relevant.

Are You Substantially At Fault?

The statute does not define “substantially at fault” but car accident lawyers have come to the consensus that substantial fault means being more at-fault for the accident or being 51% or more at fault than the other drivers.

So, if your insurance company determines that your actions or lack thereof caused the car accident, then they may elect to raise your insurance premiums, If, however, you were not more at-fault than the other driver, then they cannot increase your premiums.

Acting In Good Faith

You must be thinking “the insurance company will be the one to determine substantial fault, what’s to stop them from wrongfully claiming you are at fault?” This is a sensible concern that the statute has also addressed.
One of the keywords in the statute 626.9541 is “in good faith” which means that the insurance company must investigate the accident and your claim fairly, with the intent of upholding the terms of your policy.

So, before they decide to raise your premiums, they must conduct an investigation and ensure that this investigation is objective.

What Happens If You Are At Fault?

If, after objective investigation, the insurance provider determines that you were at-fault, then they will classify you as higher risk. Thus, to protect their company from losses, and possibly recoup previous losses as well, they may then increase your insurance premiums. They will be well within the bounds of the law in doing this.
Note that if they increase your premiums, this will stay in effect for three to five years, and may add up if you get into more accidents afterward.

The Importance Of Hiring A cr

An increase in your insurance premiums can be a major financial liability for many. This is why, apart from being vigilant against an unfair increase of insurance premiums, anyone involved in a car accident must take good care in proving that they are not at-fault for the accident.

While there are laws in place that protect consumers from unfair investigations and increase of premiums, it is best to take precautions. A car accident lawyer can help you gather evidence, build a strong case, negotiate for you, and assist you in court proceedings to prove that you were not at-fault for the accident.
You do not need to do all these alone, not when you’re still recovering from a car accident. Contact us today.