C. Jeremy Lagasse, Esq.
In the state of Minnesota, we have a No-Fault system which dictates which insurance company must pay out benefits for the first $20,000 of medical bills for any person injured in an auto accident. Many people are surprised to hear that, because of this system, their bills will be paid not by the policy of the at-fault driver, but by the injured person’s own policy, or even the policy of a family member. Anyone who has ever had to make a property damage claim on their auto policy knows there’s a good chance their insurance company will want to raise their monthly premium. For many people, having to pay even just a few extra dollars per month can throw a big wrench into the family budget. So, it’s no surprise that attorneys get this question all the time: Will my injury claim make my premium go up?
Minnesota state law is very clear on this question. According to Minn. Stat. Section 72A.20, subd. 23. (d):
"No insurer that offers an automobile insurance policy in this state shall use an applicant's prior claims for benefits paid under section 65B.44 as an underwriting standard or guideline if the applicant was 50 percent or less negligent in the accident or accidents causing the claims."
To put it plainly, insurance companies are not allowed to raise a policyholder’s rates just because they made a claim for No-Fault benefits.
However, there are some instances where an insurance company might raise a policyholder’s premium anyway. This is particularly an issue when it comes to Resident Relative claims for No-Fault benefits. If a person is injured in an auto accident and they don’t have their own policy, they may be covered under the policy of a family member that they reside with, even if that the policy was not technically involved in the accident. In this case, the insurance company may decide to raise rates because they believe their policyholder failed to inform them of an eligible driver in the household, and they weren’t able to value the policy correctly as a result.
Additionally, an insurer may decide to raise rates if their insured driver is found to be partially at fault for the accident.
If you need help with an accident or insurance claim, we’re here to help. Call Aaron Ferguson Law at 651-493-0426 today to schedule a free consultation with one of our talented attorneys.
