I have been with the same insurer for around 3 years, and have never had an accident or claim in over 15 years of driving. This past year I was involved in a rear end collision that required extensive repairs to my car. The SUV I crashed into was undamaged. I know in my mind that I was not at fault, but I accept that under the state laws I am considered at fault as the driver from behind. I get that. What I am struggling to deal with is why my insurance premium has increased from $551 to $1007, an increase of 82%. I see this as totally unfair. I was planning on protesting the increase with the MD Insurance commissioner but I guess since I was technically at fault for the crash I will probably lose, right?

  1. 475 POINTS
    Michael Pelfrey
    Owner/Agent, Pelfrey Financial Services, Lexington, KY
    Safe driver discounts can add up to very significant savings over time, but an accident will instantly remove all those discounts.  An appeal to the insurance commissioner is unlikely to lower your premium.  The best possibility for you to get a lower premium is to compare quotes from several insurers.  It is good to do this periodically to make sure you are receiving the best rates but a rate increase can make this particularly important.
    Answered on November 26, 2013
  2. 14231 POINTS
    Tom Sheehan
    Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
    I have to be honest with you, I believe that your premium increased as a result of the accident.  However, there can be a few "layers" to the increase that you as a policyholder don't actually see.  Your initial rate was probably in part because you had a safe driving record and were therefore provided a discount. The accident removed that discount.  In addition, it is possible that in accordance with MD state law, your insurance company was also allowed to surcharge your policy a percentage based upon the total amount of claim paid.  The two together can add up.  You can always satisfy your curiosity by shopping of course.  Now that you have had some experience with accident related increases, look for a company that offers accident forgivemess as an option.  While you are at it, look for a opportunity to bundle your insurance for premium savings.  Companies do offer this for such things as also insuring your home and buying Life Insurance. 
    Answered on November 26, 2013
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