Arizona Law Prevents Raising Rates If Accident Not Your Fault
You may have a claim against your own insurance company if other party has inadequate coverage to compensate you for your injuries. However, your insurance company cannot raise your rates for claims filed on your behalf for losses due to someone else’s fault. These types of losses would trigger your uninsured or underinsured motorist coverage.
Arizona Revised Statute 20-263 states:
20-263. Vehicle insurance; prohibited act by insurer; hearing; penalty
A. No insurer shall increase the motor vehicle insurance premium of an insured as a result of an accident not caused or significantly contributed to by the actions of the insured. Any insurer which increases the premium as a result of accident involvement shall notify the insured of the reason for such increase.
B. The director, after a hearing, shall order an insurer that has raised the premium of an insured in violation of subsection A to refund the amount attributable to such premium increase and shall impose a civil penalty not to exceed three hundred dollars. In determining whether an insurer has violated subsection A, the director may conduct such investigation as he deems necessary and the costs shall be paid by the insurer pursuant to section 20-159.
Therefore, an insurance company cannot raise your rates for filing an uninsured or underinsured motorist claim if it is determined that the accident was the result of someone else’s negligence. Call 480-467-8800 for a free case evaluation to learn how we can help you resolve your car accident case.