Can My Car Insurance Company Raise My Rates or Terminate My Policy if I’ve Been in an Accident?

Car insurance company representatives should win acting awards all the time. They are really good at acting supportive and friendly, but they really are just looking for ways to use you to increase their profit margin.

If you’ve been hurt in a car, truck, or motorcycle accident, the insurance company of the driver responsible for the crash will try every legal tactic they can manage to prevent you from receiving full compensation for your losses. If you’re the policyholder looking for support from your own insurance company for comprehensive coverage, collision damage, personal injury protection, or uninsured motorist coverage, you may be surprised to learn how quickly your insurance company will try to reduce your payout. The bottom line is that, unlike an attorney who works for your benefit, the insurance company is always working against you. That’s just the way the system is set up.

So, if you’ve been in an accident, it’s only natural to wonder whether your insurance company will use that as an excuse to terminate your policy or raise your rates. If they can, they will. The question is—can they? Every situation is unique, so we can’t give specific answers in a blog post like this. But here’s a general overview of the issue.

Fault is the Key

The insurance company’s actions after an accident are heavily influenced by the issue of fault. If you are found at fault for an accident, the company will want to raise your rates or end your coverage. If you were not at fault, they might still consider you a risk if you’ve had multiple claims in the last few years, so you could still be subjected to adverse action, although you do have certain protections under the law.

How do you know whether you’ve been found to be at fault for causing a collision? It’s unlikely that a judge will have ruled on the issue of fault in court, even if a lawsuit was filed, because most claims settle before trial.

In this situation, fault may be determined by the police report. It is important to obtain a copy of the report and review every detail for accuracy. If something looks incorrect, report it to the law enforcement office that filed the report. For instance, if the Decatur Police made the report, you can request a copy through the City of Decatur website and examine the details carefully. 

It may be possible to have an addendum added to the report to support your position on fault. In addition, it can be helpful to gather other evidence to show that someone else’s actions caused the accident, including photos of the accident scene and vehicle damage and statements from witnesses.

If the insurance company claims you are at fault and you have evidence to the contrary, then you can appeal their determination. Submitting your evidence might be sufficient to get a change in the finding, or it may be necessary to go through a formal internal appeal process. If the internal appeal is not successful, you may achieve a better outcome by filing a complaint with the Consumer Services Division of the Georgia Office of Commissioner of Insurance. If you are working with an attorney to recover compensation for injuries in the accident, your lawyer may be able to assist with the process.

Surcharges and Cancellation Are Not Allowed for Accidents Where You’re Not at Fault

The good news is that if you’re not found to be at fault for causing a car accident, Section 33-9-40 of the Georgia Code prohibits your insurance company from adding a surcharge to your insurance premium or cancelling your policy because of your involvement in the accident. The bad news is that courts have held that cancelling a policy is not the same as refusing to renew it. In other words, your insurance company is not allowed to immediately terminate your policy because of an accident, but they can decide not to renew your policy at the end of your term, even if you were not at fault in the least for causing the accident.

It is also important to understand that fault is not always an all-or-nothing prospect. Recovery for personal injuries in Georgia is apportioned according to a modified comparative negligence rule, and insurers can use a similar approach to assign fault for a car accident. For instance, they might decide you are 20% at fault for something like waiting too long to turn on your turn signal. If their allocation of fault crosses a certain threshold, they could decide that you were at fault for purposes of the statute, and therefore, they are justified in raising your rates or terminating your coverage.

If You Were Found to Be at Fault

The written terms of your auto insurance policy may give you rights even if you were found to be at fault, so it is important to review the terms closely. Your policy may include provisions such as accident forgiveness that prevent the company from raising your rates or cancelling your coverage after an accident, even if you were found at fault. 

However, companies do not always honor the terms of their policies. If you believe your insurance company is not following the obligations it owes under your policy, you should initiate an internal appeal or file a complaint with the Commissioner of Insurance.

Michael M. Day Law Understands How to Deal with Insurance Companies

At Michael M. Day Law Firm, we regularly battle insurance companies to obtain full compensation for accident victims. We know that these companies are not actively evil, but their single-minded, profit-centered approach certainly does not make them friends of consumers in most situations. If you’ve been injured in an accident and an insurance company has contacted you, we urge you to get legal advice before talking to them. They may try a variety of tactics to shift liability to prevent your recovery or reduce the amount you receive. Any time you would like a free consultation and case evaluation from an experienced accident attorney, call us at 404-480-4284 or contact us online.