Not At Fault? Your Auto Insurance Rates Shouldn’t Go Up

It is not unusual to have a client show up and say they got a notice that their rates went up after a collision. Clearly they had no fault in the collision, so they want to know "why did my rates go up". Of great concern is that they have usually gone to their agent and been told that they went up because they made a claim. In other cases, they have a cut rate, out of state insurance company that they found on the internet.

Well the Minnesota law is clear. The increase is a violation of Minn. Stat. §65B.17 Subd. 2(b), Minn. Rule 2770.7700 Subd.. 2 and Minn. Rule 2770.7900 Subd.. 5. unless the claim is a “chargeable accident” as defined in the Rules, Minn. Rule 2770.7900, and specifically Subd.. 5 & 7, the claim cannot be assigned points for purposes of underwriting decisions.

So the agent is wrong and the out of state cheap internet coverage is acting wrongfully under the law of Minnesota.

Now anytime rates go up, there are other things that need to be looked at:

• Did the claim result in the company finding out about other residents of the household who weren't there, or who weren't disclosed, when the policy was taken out?
• Did the claim prompt the company to check driving records to see 2 prior speeding tickets they weren't aware of?
• Did someone in the house buy a vehicle and not insure it, or insure it with another carrier?

So if this happens, I advise that you get in writing why your rates went up. If they say it's because you made the claim and you aren't at fault, you can write a letter explaining how the law prevents this increase or you can make a complaint to the insurance commissioner.