Car insurance policyholders may see rate hike
Whether involved in an accident or at fault for one, premiums could go upCar accidents are stressful with even minor incidents requiring the exchange of car insurance information and an assessment of damage.
But typically, for those not at fault for the accident, there is some sense of relief that they did not make a bad judgment call behind the wheel and that their insurance may not change.
However, insurance companies that typically charge higher premiums to new policyholders who have been in accidents - but not been deemed at fault - are able to continue to impose the accident surcharge in Florida.
According to the Sun Sentinel, Florida insurance commissioner Kevin McCarty proposed banning the charge, but did not obtain the support needed to make the idea stick. The news source reports National Association of Mutual Insurance companies spokeswoman Liz Reynolds as telling decision makers that parties involved in no-fault accidents file more claims, one reason why the charge is warranted.
While some people in Florida may see rates go up, others in California may see them go down.
One large insurance company announced today a rate cut for its car insurance policy holders. The reductions are a result of the organization's analysis of financial needs to meet future obligations.
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Posted: May 14, 2009
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