Skip to Content
Home » Blog » Will My Insurance Rates Go Up After an Accident That Was Not My Fault?


Will My Insurance Rates Go Up After an Accident That Was Not My Fault?

on  Car Accidents

After a car accident in Florida, drivers often have many questions and few answers. What just happened? Am I hurt? How will I repair the damage to my car? After you assess the situation and damages, you might feel shaken but relieved to realize that the accident was not your fault. However, a new concern often arises: Will your insurance rates increase due to this accident?

Fortunately, Florida law states that insurance companies cannot raise your rates after an accident. However, this does not mean there won’t be penalties, and it can affect whether your insurer continues to provide you with coverage in the future. 

Navigating the aftermath of a car accident can be overwhelming, especially when you worry about the financial implications it may have on your insurance premiums. However, if you live in Florida, it’s essential to understand the state’s insurance laws and regulations and how they will affect your case.  

To make things easy, contact an experienced Florida car accident lawyer after your accident. Most law firms, including Prosper Shaked Accident Injury Attorneys, PA, offer free initial consultations, so you can get the answers you need to your most pressing questions. We can help you explore all your legal options and provide the necessary legal support during this challenging time.

Our lawyers will guide you through the intricacies of no-fault insurance, which Florida adheres to. We will help you handle the insurance company and fight back if they try to raise your premiums. 

Remember, when protecting your rights and securing fair treatment, seeking legal advice is always a wise decision. Attorney Prosper Shaked can provide you with peace of mind and help you make informed choices regarding your insurance rates and the overall aftermath of the accident.

Florida Law Prevents Insurance Companies From Raising Rates

Did you know that Florida has a specific statute, § 626.9541, that explicitly prohibits insurance companies from raising premiums for liability, personal injury protection, medical payments, or collision coverage solely due to the insured party’s involvement in a car accident? This law applies unless the insurance company determines you were substantially at fault.

In simpler terms, if you are not more than 50% at fault for the accident and your insurance rates increase, your insurance company is violating the contract terms with you. They are not acting in good faith by failing to uphold their end of the policy agreement. This violation means that they may be held accountable for their actions.

Even If You’re Not at Fault, You Might Still Face Consequences

Even if you were not at fault for your accident, there can still be repercussions. According to the statute, insurance companies in Florida are not obligated to renew your policy if you have been involved in three separate accidents within a three-year period, regardless of fault. However, if the insurer cancels your policy and you have only had two accidents within the specified time frame, their actions may be considered as acting in bad faith.

In other words, while insurers have the right to refuse policy renewal under certain circumstances, canceling your policy when you have not met the threshold of three accidents within three years would violate their duty to act in good faith. This means you may have grounds to challenge their decision and seek legal recourse.

To fully understand your rights and options, talk to our car accident attorneys. We will assess the specific details of your situation and help you address any unfair actions taken by your insurance company.

No-Fault Insurance in Florida

But I thought Florida was a No-fault state. How can someone be at fault in a no-fault state? 

Even in no-fault states like Florida, someone is still responsible for the accident. It means that each driver’s insurance company is responsible for covering their policyholder’s injuries and damages, regardless of who is at fault in an accident.

Under Florida’s no-fault insurance system, drivers must carry Personal Injury Protection (PIP) coverage as part of their auto insurance policy. PIP coverage compensates for medical expenses, lost wages, and other expenses resulting from an auto accident, regardless of fault.

When an accident occurs, each driver involved in the collision must turn to their own insurance company to cover their medical bills and other eligible expenses up to the limits of their PIP coverage. This system aims to provide quick access to funds for necessary medical treatments and reduce the need for legal disputes over fault determination.