In general, if you are not at fault for an accident, your insurance rates should not go up. However, it is possible that your insurance company may still increase your rates due to other factors, such as your overall driving record or the number of claims you have filed in the past.
If you are found to be at fault for an accident, it is more likely that your insurance rates will increase. This is because the accident will be considered a “chargeable” accident, meaning that it will be counted as a claim against your policy. Insurance companies typically use a rating system to determine premiums, and a chargeable accident may result in an increase in your premium. If you are involved in a car accident, you may benefit from using your own underinsured motorist benefits and medical payments benefits. In Colorado, generally, using these types of first-party benefits will not cause your rates to increase. Let’s learn more about underinsured motorist benefits and Colorado Law governing any rate change when using these benefits.
What Is An Underinsured Motorist’s Claim
An underinsured motorist claim is a type of claim that an individual can make if they are involved in a car accident with a driver who does not have sufficient insurance coverage to pay for the damages they caused. If the other driver’s insurance is insufficient to cover the damages, the individual can make a claim under their own underinsured motorist coverage, which is a type of insurance that is typically included in an auto insurance policy. This is called first-party coverage. A first-party claim is a claim that you file with your own insurance company for damages or losses that you have suffered. This coverage is designed to provide financial protection in the event that the individual is involved in an accident with a driver who does not have enough insurance to cover the damages.
To make an underinsured motorist claim, the individual must first report the accident to their insurance company and provide all necessary documentation, including a police report, any estimates for repairs or medical bills, and any other relevant information. The insurance company will then evaluate the claim and determine the amount of coverage that is available under the individual’s policy. If the coverage is sufficient to cover the damages, the insurance company will pay out the claim. If the coverage is insufficient, the individual may need to seek additional compensation through other means, such as suing the other driver directly or filing a claim with the driver’s insurance company. It’s important to be familiar with Colorado law to determine if submitting an uninsured motorist’s claim will raise your insurance rates.
Will An Uninsured Motorist’s Claim Raise My Insurance Rates In Colorado?
Generally, No. When you file a first-party claim, your insurance company may consider this claim as part of their evaluation of your risk profile and may adjust your insurance rates accordingly. Factors that may influence the decision to raise your rates include the type and severity of the claim, your claims history, and the overall cost of the claim. It is important to note that insurance companies have different policies and procedures for determining rates, so it is best to check with your insurance provider to understand how a first-party claim could potentially impact your rates.
Colorado Law provides that “No insurer shall refuse to write, cancel, fail to renew, reclassify an insured under, reduce coverage under (except as part of a general reduction in coverage filed with the Commissioner), or increase the premium for any complying policy as defined in § 10-4-601(1), C.R.S., based on claims paid under comprehensive coverage, unless the insurer can demonstrate that the loss was a result of an insured’s actions. See, C.R.S § 10-4-628.
What Can You Do If An Insurance Company Raises Your Rates After An Accident That Was Not Your Fault?
Under §10-4-628(3), C.R.S., an insured is entitled to protest an insurer’s action pursuant to §10-4-629, C.R.S. if the insured believes that the provisions of §10-4-628(1)(a) or (b), C.R.S. have been violated. Insurers taking any actions subject to the provisions of §10-4-628(1)(a) or (b), C.R.S. shall:
- Send a notice as required by §10-4-629, C.R.S.
- Include all necessary information in the notice as required by §10-4-629, C.R.S.; and
- Offer the right to protest the proposed action and request a hearing thereon before the Commissioner regardless of the length of time the policy has been in effect.
The Colorado Division of Insurance Consumer Services sections investigates individual consumer complaints against insurers. Investigations may result in financial recoveries for consumers in the form of additional claim payments, overturned denials of policy benefits, or other refunds for the consumer. Investigations can also result in policies being reinstated for consumers.
If you feel an insurance company improperly raised your insurance rates after a car accident, you can file a complaint with the Colorado Division of Insurance.
In Colorado, car insurance is required by law for all drivers. If you are involved in a car accident, your insurance will cover the costs of any damages or injuries sustained by you or the other party. It is important to have adequate insurance coverage to protect yourself financially in the event of an accident. If you are at fault in an accident, your insurance may also cover the damages to the other party’s vehicle and any medical expenses they incur. If you are not at fault, the other party’s insurance will typically cover your damages and expenses. It is important to have a clear understanding of your insurance coverage and to follow all traffic laws to help prevent accidents.