QuestionI was hit by a car as a pedestrian. The driver being fully at fault is not a question. He admitted it to the officer, plus it was captured on video and he took out landscaping to get to me. Driver was driving a relative's car, so it's not even his auto insurance company that would cover this accident. (In fact, I don't even know if he was insured on his own, though in CA is "required" to.) He also lives in that relative's home. It's been over 18 months and I am still dealing with back and, worse, brain issues from a concussion.
My lawyer is recommending suing both their car insurance company AND my insurance company for compensation. Which now brings me to my question. I am very concerned that if I sue my own insurance company that either shortly thereafter, or in the near future, they will either drop me totally or raise my rates significantly. Can they do either? Does that vary by state right now? If they can drop me altogether, how difficult does it become for finding another insurance company willing to insure me?
I live in California, but don't think I'll stay here forever, so I need to worry about repercussions, including down the road, from more than just CA. My insurance company is a great one, so I am very concerned about any backlash from suing them.
Thanks very much for your help with this!
AnswerYour insurance company can "non-renew" you for whatever reason they want, but they can't just cancel you flat without good cause (normally a misrepresentation on your part will do the trick). Essentially, when your policy is up for renewal, your company may refuse to renew the policy and you will be stuck searching for insurance. Each company has its own set of underwriting guidelines so it's hard to speculate as to whether you will get dropped or whether your rates will increase. Most companies use a sort of point system and they assign a certain number of points to certain types of claims (4 points for an at fault accident, 3 points for a theft or vandalism, 2 points for weather related, and 1 point for a not at fault, and so on). The company may also employ a threshold method ($1500.00 and lower doesn't count against you, and 1 point for every $1000.00 above that). Unfortunately, I just don't have enough information to answer more precisely.
Additionally, most insurance companies are members of the "ISO" insurance services office, formerly CLUE. This company maintains a list all accidents reported by member companies. When I was an agent, I ran a claims history on all my potential customers. Most places do this all over the U.S. It may affect your rates if you are unable to get the handling adjuster to write a letter relieving you of liability in the accident and pleading with the underwriting department.
All hope is not lost. . .the assigned risk plan or a variation thereof is available in every State. You call the State, they qualify you for the plan (if you can't get insured somewhere else, then you qualify), and then the State forces one of the insurance carriers who has agreed to be a part of the plan to take you as a client. Your rate may be a little higher, but it is not a huge difference, considering the repercussions if you are involved in an accident and are uninsured. . .
I hope that helps!
