Will my or my family member’s insurance rates go up if I receive PIP benefits?


personal injury protection or PIP pays an injured person certain benefits for any injuries that he or she sustains regardless of who is at fault on a first-party basis. The personal injury insurance is a coverage for any medical bills and benefits for loss of wages in case you get involved in an auto accident. Although this car accident insurance policy is cheap and offered in New York City and others states, most people don’t know much about it, and thus don’t purchase it. Interestingly, some of the people who have it refuse to file claims because they fear that their insurance premiums may skyrocket.


The insurance policy is necessary for covering certain financial setbacks that you may suffer after a car accident wreckage. Since it’s an insurance policy just like many others out there, you ought to make well-thought out decision before hiring an San Diego personal injury attorney and filing a claim because, in some situations, your insurance rates may go up.


It’s critical to note that there is a difference between no fault PIP benefits with the subtleties of no fault personal car insurance policy. The personal injury protection insurance coverages are worked based a ” no fault” approach, and thus you can file a claim for benefits regardless of whether you were at fault or not, at the time of the accident.


Insurance companies use the term ” no fault” to define the changes that will happen to your car insurance premiums after filing a claim for benefits. In such situations, it means that your premium rates will not be affected by a claim. This is different to what happens when you’re using a personal injury protection coverage. Every insurance company has certain in-house policies that govern the implementation of all these limitations. Most established car insurance companies make decisions on a case-by-case basis. Therefore, it’s only wise that you check with your insurance company to ascertain how they handle the aftermath of filing for a PIP claim before you contact your San Diego personal injury attorney.


Who is covered by PIP?


All the passengers involved the auto accident

The policyholder

Authorized drivers of the insured car

Relatives of the policyholder

The policyholder’s family members when involved in an accident as pedestrians

The policyholder’s family members when involved in a car accident while in another person’s car.

Technicalities of PIP cases


There are high chances that the premium rates may increase. The rates may increase either in your premium rates only or in both the car insurance policy and PIP premiums. Most insurance companies combine the two covers, making it difficult to notice the difference when the increase happens. Insurance companies always evaluate their clients’ risk profile before setting rates. Meaning that after the auto accident, they’ll reevaluate your risk profile before setting new rates. Eventually, this will increase your monthly premiums, leading to a higher deductible.


In other words, the situation becomes tricky and confusing because you can file a PIP claim and get a significant amount of money, which will help you greatly, but at times suffer long-term financial dents caused by increased premium rates. There are people who end up missing out on huge benefits by fearing to file a PIP claim after an accident, which is in the tune of thousands of dollars for compensation for lost wages and injuries.


Contact a personal injury attorney


Dealing with the insurance company lawyers can be overwhelming after a car accident when you’re heartbroken and probably recuperating in hospital. An experienced San Diego personal injury attorney will guide you all the way in filing for a PIP claim and advise you accordingly on how to protect your financial future.

We handle most major injuries

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