Car Collision Does NOT Automatically Raise Rates - The Law

I had an insurance agent tell me "The insurance company is now raising rates if you are in a collision, regardless of fault." If you have heard this same thing, you want to read this -->

 The Law

This is one case where Utah has got your back. Due to insurance companies frivolously raising premiums, then searching for any justification, Utah Legislators put into law Section 31A-19a-212.  Which says:

(1)

Each rate, rating schedule, and rating manual filed for personal lines insurance may not permit a premium increase due to: (a) a telephone call or other inquiry that does not result in the insured requesting the payment of a claim; or (b) a claim under a policy of insurance covering a motor vehicle or the operation of a motor vehicle resulting from any incident, including acts of vandalism, in which the person named in the policy or any other person using the insured motor vehicle with the express or implied permission of the named insured is not at fault.

 Its Meaning

If you are in a collision where you are not at fault, it is illegal for the insurance company to raise your rates. If you call and open a claim, but the insurance company does not end up paying out, it is illegal for the insurance company to raise your rates. 

What You Should Do

If you are in a collision and the other person is at fault, WATCH YOUR PREMIUMS. If a few months after the collision you notice an increase in your rates, call your agent and tell them the law. You will most likely see your rates drop back down immediately. 

Stay safe and Drive on!