Auto Insurance

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Can my auto insurance rate increase?
 
By law, companies may choose to increase premiums before filing the increase with DFS. The Department will review the increase and could later deny it. Companies must refund premiums to policyholders if the Department finds the rates excessive.
When applying for automobile insurance, disclose all members in your household, or anyone else who regularly drives your vehicle. If you do not, and a person not listed on the policy is the driver involved in an accident, your claim may be denied for misrepresentation and your policy contract rescinded. This may apply to households with a family member or teen-age driver, or a friend or other person who uses the vehicle occasionally.
 

SURCHARGES
 
A surcharge is an additional charge added to the basic policy premium.

If your insurer finds you at fault in an accident case, the company may add a surcharge to your policy or refuse to renew it. The percentage of the surcharge is determined by the company's underwriting guidelines.

A company can surcharge a policy for an at-fault accident or conviction for three full years from the date it is first applied, following the accident. After the three-year period, the surcharge will be eliminated. The company, however, must notify you of your eligibility for reimbursement of the surcharge or renewal of the policy if you can meet certain requirements. This notification must occur if you can show that you or the driver covered under your policy were:

 
  • Legally parked
  • Reimbursed by, or had a judgment against, the person responsible for the accident
  • Struck in the rear and not convicted of a moving traffic violation
  • Struck by a hit-and-run driver and the accident was reported to the proper authorities within 24 hours
  • Not convicted of a violation, but the operator of the other vehicle was convicted of a moving violation
  • Ruled by a local court to be not at fault for the accident or "adjudicated not to be liable"
  • Dismissed or "nolle prossed" for a traffic violation (the plaintiff or prosecutor dropped prosecution of the case) or
  • Not at fault according to his or her written statement of facts, and the insurer's file does not provide information to overturn this statement.