borrowed my brothers truck and crushed my finger in tailgate. If I file a pip claim and income continuation claim will his Tinsurance premiums increase?
Total Comments: 3
Posted: Tue May 11, 2010 11:10 pm Post Subject:
Any time an insurance company pays a claim, the insured could expect to see a premium increase as a result.
A friend who used to have a furniture manufacturing business, paying $1,000,000 in annual workers' comp premium, was the recipient of an employee's (probably fraudulent) claim ultimately costing $400,000. His next year's premium was, interestingly, $1,400,000.
Posted: Tue May 11, 2010 11:29 pm Post Subject:
Max, your statement is normally correct concerning collisions, etc, but might not necessarily apply to all auto losses claimed.
Auto claims do not always mean a rate increase. For example, comprehensive (commonly called "other than collision") claims are not normally considered "chargeable" and will typically not result in a rate increase. They can, however, result in a non-renewal or increase in deductible situation.
PIP claims are generally considered chargeable and can alter the base rate, usually, up to about 10%. There are some carriers that will only increase rates if the loss exceeds that state's "threshold" which is commonly a payout of $750 or higher, depending on the state.
I would suggest speaking with the agent. Since it's your friend's policy, he would need to do this. What was the damage in terms of $$$ on the medical side of things? Maybe have your medical coverage pay and work something out with your friend in terms of deductible, coinsurance, etc.?
Tough one to call...
InsTeacher 8)
Posted: Wed May 12, 2010 06:38 am Post Subject:
comprehensive (commonly called "other than collision") claims are not normally considered "chargeable" and will typically not result in a rate increase. They can, however, result in a non-renewal or increase in deductible situation.
Agreed. But a non-renewal likely means a new policy will be more expensive, and an involuntary increase in deductible = substandard treatment = more money in the broadest sense.
Posted: Tue May 11, 2010 11:10 pm Post Subject:
Any time an insurance company pays a claim, the insured could expect to see a premium increase as a result.
A friend who used to have a furniture manufacturing business, paying $1,000,000 in annual workers' comp premium, was the recipient of an employee's (probably fraudulent) claim ultimately costing $400,000. His next year's premium was, interestingly, $1,400,000.
Posted: Tue May 11, 2010 11:29 pm Post Subject:
Max, your statement is normally correct concerning collisions, etc, but might not necessarily apply to all auto losses claimed.
Auto claims do not always mean a rate increase. For example, comprehensive (commonly called "other than collision") claims are not normally considered "chargeable" and will typically not result in a rate increase. They can, however, result in a non-renewal or increase in deductible situation.
PIP claims are generally considered chargeable and can alter the base rate, usually, up to about 10%. There are some carriers that will only increase rates if the loss exceeds that state's "threshold" which is commonly a payout of $750 or higher, depending on the state.
I would suggest speaking with the agent. Since it's your friend's policy, he would need to do this. What was the damage in terms of $$$ on the medical side of things? Maybe have your medical coverage pay and work something out with your friend in terms of deductible, coinsurance, etc.?
Tough one to call...
InsTeacher 8)
Posted: Wed May 12, 2010 06:38 am Post Subject:
comprehensive (commonly called "other than collision") claims are not normally considered "chargeable" and will typically not result in a rate increase. They can, however, result in a non-renewal or increase in deductible situation.
Agreed. But a non-renewal likely means a new policy will be more expensive, and an involuntary increase in deductible = substandard treatment = more money in the broadest sense.
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