Property Damage and Insurance Rate Hike?
I recently had an accident where my insurance company, Geico, determined I was not at fault. However, the other driver’s insurance, Liberty Mutual, initiated a subrogation claim, leading my insurance to label me at fault. My insurance representative mentioned that they would cover the other driver’s claim using the property damage limit rather than my liability limit. Given that I was not at fault and the incident only involved vehicles (no property damage to homes or buildings), will I still face an increase in my insurance rates?
This situation is taking place in New York.
It sounds like you’re in a frustrating situation. In general, if you are deemed not at fault in an accident, your insurance rates typically shouldn’t increase as a direct result of that accident. However, there are a few factors to consider:
Subrogation Process: Since your insurance company (Geico) is handling the claim through subrogation with Liberty Mutual, they have taken responsibility for paying the other driver. Even if you were not at fault, this could potentially impact your premium, depending on your insurer’s policies.
Insurance Company Policies: Different insurance companies have different algorithms for calculating premiums. Some companies may raise rates even for not-at-fault accidents, while others may not. It’s worth checking Geico’s specific policies or any state regulations regarding rate increases after a not-at-fault accident.
Rate Increases: If your rates do increase, you might want to discuss this with your insurance agent to see if there are options to mitigate the increase, such as taking a defensive driving course or adjusting your coverage.
New York Regulations: In New York, insurance laws can be a bit complex, so it can be beneficial to consult with a local insurance agent or the New York Department of Financial Services for more detailed information regarding your specific situation.
Overall, while it’s less likely for your rates to increase when you are not at fault, it’s best to monitor your renewal policy and discuss any concerns directly with your insurance representative.