Using uninsured driver coverage could increase future premiums

On Behalf of | Jan 26, 2024 | Car Accidents |

Motor vehicle insurance helps reduce the financial challenges associated with driving and vehicle ownership. Most people do not have enough resources in their own names to reimburse other people if they cause major collisions. They instead pay into an insurance plan that can provide them with a fixed amount of financial coverage that may protect them from liability after a wreck.

The law in Connecticut actually mandates more insurance than what people carry in most other states. In addition to basic liability coverage, Connecticut drivers typically also need to carry uninsured and underinsured motorist coverage. Every driver must meet basic coverage requirements but can also choose to purchase additional insurance for greater financial protection.

The mandatory uninsured and underinsured motorist protection required in Connecticut can help people cover expenses that should be the responsibility of the party at fault for their crash. However, the use of that coverage can increase what people pay for their insurance in the future.

Yes, claims tend to increase policy premiums

The more claims someone has against their policy, the more it costs a company to provide them with coverage. Drivers with at-fault insurance claims often see a significant increase in what they pay for their policies. In some cases, they may need to purchase different coverage because they are no longer eligible for the same policy they carried before.

Even when someone is not at fault for a crash, filing a claim against their coverage could increase their future insurance costs. Research into the impact that uninsured motorist claims have on policy premiums shows that drivers can expect to pay more for their coverage. Thankfully, the increase is typically far less than it would be if they were at fault for a crash and another party made a claim against their liability coverage.

The average annual policy premium increase for uninsured and underinsured motorist claims is less than $100. Some people view that as a reasonable cost. Others may seek to take legal action against the driver who caused the crash instead of using their personal policy.

A successful personal injury lawsuit against someone who caused a crash without insurance or with an inadequate policy could protect someone from the chances of their own future insurance costs rising after a crash that was not their fault. Learning more about how different scenarios affect insurance may help people better respond to a recent Connecticut collision.


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