Car accidents are unexpected, and the aftermath can be overwhelming. Whether you’re dealing with vehicle repairs, medical bills, or insurance paperwork, the last thing you want to worry about is being penalized for filing a claim with your insurance company. If you’ve been in a car accident, you may wonder if reporting it will have negative consequences on your insurance policy. Can your rates increase? Could your policy be dropped? What if the accident wasn’t your fault?
In this article, we’ll explore these questions and more and provide clarity on how filing a car accident claim may impact your relationship with your insurance company. By the end, you’ll have a better understanding of your rights and how to protect yourself during the claims process.
Understanding Car Insurance Claims in Louisiana
In Louisiana, drivers are required to carry a minimum level of car insurance, which includes liability coverage for bodily injury and property damage. When you’re involved in an accident, whether at fault or not, filing an insurance claim is usually the first step to recovering the costs of repairs and medical expenses. However, we strongly suggest that you do not contact any insurance company directly. The best practice is to hire an injury lawyer and allow the injury lawyer to contact the insurance company on your behalf.
Will My Insurance Premiums Increase or Will My Insurance Company Drop Me After Filing a Claim?
One of the most common concerns people have when considering filing a claim is whether their premiums will increase. The answer depends on whether you were at fault or not.
If the accident is determined to be your fault, your insurance company will likely raise your premium. Insurance companies view you as a higher risk after an at-fault accident and adjust your rates accordingly. According to Forbes, drivers involved in at-fault accidents may see an average increase of around 41% on their annual premiums.
But what if you weren’t at fault? In Louisiana, if you are in a car wreck and you did not cause the wreck, La. R.S. 22:1284 prohibits your auto insurance company from raising your auto premiums or cancelling your policy. Plus, your auto insurance company must renew your auto policy.
The “No-Pay, No-Play” Law in Louisiana
Louisiana has a unique law called the No-Pay, No-Play law, which can penalize uninsured drivers in the event of an accident. This law states that if you’re driving without the required liability insurance and are involved in an accident, even if it wasn’t your fault, the law prevents you from recovering the first $15,000 of bodily injury damages and the first $25,000 of property damage.
Although this law is harsh, there are many exceptions to the law applying to your case. The law does not apply if you were hit by a drunk driver, the at-fault driver flees the scene of the accident, your vehicle was legally parked at the time of the accident, you were a passenger in a vehicle that you did not own, and other exceptions. Plus, if you are injured and your injury case is worth more than $15,000, you are able to recover the full value of your injury case, less $15,000.
This law underscores the importance of maintaining liability insurance coverage at all times. If you’re driving uninsured and get into an accident, you not only face penalties from the state but also lose out on significant compensation opportunities.
Conclusion
If you are involved in a car wreck, contact the Joubert Law Firm for a free consultation. At Joubert Law Firm, we understand the complexities of dealing with insurance companies after a car accident. As The Proud Sponsor of You, we fight to ensure that our clients in Baton Rouge and across Louisiana receive the compensation they deserve. Our experienced team has won over $100 million for our clients, and we’re committed to protecting your rights every step of the way. Whether you’re dealing with an at-fault accident, bad faith insurance practices, or disputes over coverage, we’re here to help.
If you’ve been in a car accident and need legal support, don’t hesitate to reach out to us. Let us fight for you, so you can focus on recovering and moving forward with your life.