Will an increase in my rates result?
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UPDATED: Jul 12, 2018
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Insurance Question from Galvez, LA
Asked on 07/12/2018
Will an increase in my rates result? Will a homeowner insured's rate increase if a claim is filed with his provider but the damage is paid for by the liable party's insurance?
Answer given on July 18, 2018
I’m not sure if this is regarding an auto or homeowner claim, but I am presuming it is an auto claim. If that is the case, most insurance companies will not increase your auto insurance rate if the other insurance company pays for all damages. If you can work directly with the other insurance company, it may be better to do so. However, you have the choice to go through your insurance company to pay for the damages, less your deductible, and then your insurance company will subrogate against the other insurance company for repayment. If successful, your insurance company will reimburse you the amount of your deductible.
There are a few insurance companies that will increase your rates if you file a claim, even if they do not make payment or are fully reimbursed. This is a rare situation, but it does happen with some insurance companies in some states.
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