Many clients worry that their auto insurance premiums will increase when they file a claim, even if they were not at fault for a crash. This is a reasonable concern since car insurance costs are already high, and many drivers fear that using their coverage could make things worse financially.
According to data from Experian, the average annual cost of full-coverage auto insurance for a Pennsylvania driver ranges from $2,397 to $2,476, while Philadelphia drivers pay between $2,841 and $4,245.
Full coverage typically includes:
- Liability coverage – pays for injuries or damages to others if you cause a crash
- Comprehensive coverage – covers damage not caused by a crash, such as theft, fire, or storm damage
- Collision coverage – pays to repair or replace your vehicle after a crash
Given these expenses, it’s understandable that some people hesitate to make a claim, even when they’re entitled to compensation.
Let’s clear up the confusion: It is against Pennsylvania law for your auto insurance company to raise your rates if you were not at fault for the accident.
What Pennsylvania Law Says
- Medical Coverage
If your auto insurer pays for your medical treatment after a crash, it cannot raise your rates, even if you were at fault. - Property Damage and Subrogation
When your insurance company pays for property damage, it will usually seek reimbursement from the at-fault driver’s insurer through a process called subrogation.- If your insurer recovers at least 60% of the amount it paid, your rates cannot legally be increased.
- This is important because many drivers think it’s better to wait for the at-fault party’s insurer to pay. But that process can be slow if fault is disputed. Your own carrier can pay for repairs right away and then recover its costs later through arbitration.
- Notice of Rate Increases
If your insurer intends to raise your rates for any reason related to a claim, the law requires them to provide written notice and a clear explanation.
Protecting Yourself After a Crash
You’ve fulfilled your obligation by purchasing auto insurance. If you are injured or suffer property damage in a crash that wasn’t your fault, your insurance company’s duty is to handle your claim — not to penalize you with higher premiums.
If you believe your rates were unfairly increased after an accident or you’re struggling with a delayed or denied claim, speak with an experienced Pennsylvania car accident lawyer at Baratta Law. Our team can help you understand your rights, deal with the insurance companies, and make sure you get the compensation and coverage you’re entitled to.
