Michigan Auto Insurance - Can Premium Rise b/c of Not-At-Fault Accident?
September 27, 2013 3:20 PM   Subscribe

In the state of Michigan, USA, can your auto insurance [liability+collision+comprehensive] premium be increased as a result of a collision claim for which the driver/policyholder is judged 'not at fault' by the police or court? I thought that it could, but I have a friend who is sure it cannot. Can any of you provide a definitive answer?
posted by Juffo-Wup to Law & Government (6 answers total)
I don't, but the Michigan Department of Insurance does.
posted by SMPA at 4:43 PM on September 27, 2013

Also, my total non-expert reading of the guide to no-fault insurance leads me to believe the answer is that less-than-50% at-fault accidents don't affect your premium, but this is only because they repeatedly say that more-than-50%-at-fault accidents can raise your premiums.
posted by SMPA at 4:47 PM on September 27, 2013

When I was in insurance, not-at-fault accidents actually increased most premiums more than at-fault accidents. Apparently the actuarial data has shown the when one is involved in a not-at-fault accident, they are markedly more likely to be involved in another accident in the next year or two. Weird play on statistics that passes the muster of most state's insurance governing bodies. Hope this helps in any way.
posted by efalk at 3:26 AM on September 28, 2013

Best answer: Hi. I work in insurance, and I've worked on Michigan auto insurance specifically in the past.

I just checked our manual, and YES, your insurance can go up for a NAF accident, even if you're just sitting at a stop sign and someone rear-ends you.
posted by Ms Vegetable at 6:18 AM on September 28, 2013

Your insurance premiums can go up for any reason, no matter how specious.
posted by Thorzdad at 6:49 AM on September 28, 2013

Different states have different regulations, but in general, insurance companies don't really care so much about fault as they do whether you make a claim or not. Even if the other driver's insurance ultimately covers the costs, your insurance company has to go through the hassle of paying you off and then trying to recover from the other driver.
posted by gjc at 12:03 PM on September 28, 2013

« Older Heeft een van de commentatoren in deze video...   |   Insurance in the Time of Arson Newer »
This thread is closed to new comments.