As personal injury lawyer mississauga, one of the questions we get most frequently is: “Will making a claim cause my insurance rates to go up?”
What is most important and relevant for victims of automobile accidents to know is that your premiums will NOT be affected if the accident was not your fault, or even if the accident was only 25% or less your fault. Some insurance companies also offer what is referred to as “Accident Forgiveness” whereby they will forgive your first motor vehicle accident in which you were at fault without increasing your premiums. In addition, any type of property damage claims such as theft or vandalism will not cause your premiums to be increased.
However, according to the Insurance Bureau of Canada, at fault or partially at fault car accidents will cause your insurance company to increase your rates. This can happen even if someone borrows your car and gets into an accident which is their fault.
If you have more than 3 at fault accidents over a period of 5 years, your insurer could potentially decline to cover you and refuse to renew your car insurance policy. In fact, numerous drivers have complained that their insurance companies have refused to cover them under these circumstances, even when the three accidents in question were very minor with low costs to the insurer. Such circumstances would force a drive to obtain a high risk policy from specialty insurers, which could cost close to $20,000 per year.
Be careful of driving convictions! This area is a little more complicated and beyond the scope of this article, but suffice it to say that if you have convictions related to your car accident, your insurance rates are very likely to rise. The increase in your premiums following a conviction will be linked to the severity of the offence.
The short conclusion therefore would be that your insure rates will increase if you were at fault but that they will not increase if you were not at fault or less than 25% at fault. Therefore, if you have been injured in a motor vehicle accident, you should never hesitate to contact a personal injury lawyer to discuss these matters and to deal with the far more pressing injury portion of you accident claim.
Stephan Intraligi, Hon.B.A., J.D., Esq.
Mr. Intraligi is a personal injury lawyer and the founder of Intraligi Law Firm offering free consultations for all victims of car accidents, slip and falls and all other type of personal injury related matters.