Factors Affecting Insurance Premiums in Florida

In Florida, many drivers are concerned about their insurance premiums increasing if they file a claim with their own insurance carrier after a car accident. The answer to this concern is not straightforward, as it depends on various factors, including the specifics of the accident, the driver's insurance policy, and Florida state law.

What Is No-Fault Insurance in Florida?

Florida is a no-fault state, which means that drivers are required to carry Personal Injury Protection (PIP) insurance that covers their medical expenses and lost wages in case of an accident, regardless of fault. However, fault can still play a role in determining insurance premiums.

Factors Affecting Insurance Premiums in Florida

Under Florida law, insurance companies are prohibited from increasing premiums based solely on a driver's involvement in a car accident that was not their fault. Florida Statute § 626.9541(1) states, in sum and substance, that it is an unfair trade practice for an insurance company to increase the rate or premium for a motor vehicle insurance policy based upon the fact that the insured was involved in a motor vehicle accident unless the insurer can demonstrate that such accident was the fault of the insured.

However, if the driver is found at fault for the accident, Florida law allows insurance companies to increase premiums. Florida Statute § 626.9541(1) allows an insurer to increase the rate or premium for a policy of motor vehicle insurance if the insurer in good faith determines that the insured has an adverse driving record. This adverse driving record can include accidents or traffic violations.

It is essential to review the terms and conditions of the insurance policy before filing a claim to understand how the policy will impact premiums. Some policies may include clauses that prohibit insurance companies from increasing premiums in case of accidents that were not the driver's fault.

Reviewing Your Insurance Policy

In conclusion, Florida law prohibits insurance companies from increasing premiums based solely on a driver's involvement in an accident that was not their fault. However, if the driver is found at fault, the insurance company may increase premiums based on an adverse driving record. Drivers should carefully review their insurance policy and speak with their attorney to understand the potential impact on premiums.

If you have questions about your insurance premiums or need legal guidance regarding personal injury law, contact us now for a free consultation or give us a call at +1 (561) 695-4781. Our team at Your Lawyer Alex is here to help you.

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