Auto Insurance Claims: Responsibility of child being hit by motorist, state insurance commissioner, tortfeasor

Question
Dear Dr. Settlement,

In May of 2005 my daughter was hit by a teenage motorist, who was at fault for not yielding right of way. My daughter sustained minor injuries which were taken care of by the teenagers car insurance. Several months later I received a call from their insurance provider stating that he was seeking compensation from my and my ex-wifes insurance companies. He said this a Minnesota law and that it would not show up as a claim on my insurance policy. Well, last week, I'm checking for lower insurance rates, because my insurance rates had increased significantly over the last year. I couldn't why they were so high, since I've only had one collision claim against my insurance in over 30 years of driving. I called my insurance company, and they said I had two claims, one for a rear end collision I was involved in in Jan. 2005, and the compensation claim for my daughters accident.
Is my insurance responsible in a situation like this, and if it is why?

Answer
Dear Tim,

You have been tagged with an "at-fault" accident.  I have no idea how that could happen if the facts are as you relate them to me.  

Your rates cannot go up if you use your coverage, so long as you were not at fault.  But in this case, you did not use your coverage, but instead you used the coverage of the tortfeasor.  The way it is supposed to work is that your own company is the first line to pay your medical bills.

Minnesota is a no-fault state.  And as such, your insurance should have participated in paying these billings.  Why did the adjuster notify you, and what opportunity was given you to contest his charging against your policy?

Here is what I would do:
1.   Get some supervisor on the phone and have her explain what happened and why;
2.   Based upon that answer, make your complaint to your state insurance commissioner http://www.settlementcentral.com/links.php  

Let him tell you what standards have been approved for a company to raise its rates based upon an at-fault accident that was caused by the "other guy".

That should get you the relief you need.  

Best Wishes,

Dr. Settlement, J.D.
http://www.SettlementCentral.Com