Will Filing a Personal Injury Claim Impact My Insurance Rates?

TL;DR: Filing a personal injury claim does not automatically mean your insurance rates will increase. In Arizona, whether your premiums change depends on several factors, including who caused the accident, the type of insurance claim filed, and your insurance policy. Arizona law provides certain protections against premium increases for accidents you did not cause. Understanding your rights can help you pursue compensation without unnecessary concerns about your insurance coverage.

If you’ve been injured in a car accident or another incident caused by someone else’s negligence, you may be considering filing a personal injury claim. However, one concern often prevents accident victims from seeking the compensation they deserve:

Will filing a personal injury claim increase my insurance rates?

The answer isn’t always straightforward. While filing a personal injury claim doesn’t automatically raise your premiums, certain circumstances can affect what you pay for insurance.

At the Law Offices of Sonja Duckstein, we understand that accident victims are often dealing with medical bills, lost wages, and unexpected financial challenges. Worrying about higher insurance costs shouldn’t prevent you from understanding your legal options.

Here’s what Arizona residents should know about how personal injury claims can affect insurance rates.

Does Filing a Personal Injury Claim Increase Your Insurance Rates?

In most situations, filing a personal injury claim against the person responsible for your injuries does not directly cause your insurance premiums to increase.

However, it’s important to understand the difference between filing a personal injury claim and filing a claim under your own insurance policy.

A personal injury claim generally seeks compensation from the party responsible for your injuries. For example, if another driver causes an accident that leaves you injured, you may pursue compensation through that driver’s liability insurance. Because you’re seeking compensation from someone else’s insurance company, the claim generally does not involve a payment under your own liability coverage.

However, your insurance company may still learn about the accident, and other circumstances surrounding the incident could potentially affect your premiums. The most important factor is often whether you were responsible for causing the accident.

Does Filing a Claim Against Someone Else’s Insurance Affect Your Rates?

If another driver causes an accident and you file a personal injury claim against their insurance company, your own insurance rates generally should not increase simply because you sought compensation.

For example, imagine you’re stopped at a red light in Phoenix when another driver rear-ends your vehicle. You suffer injuries that require medical treatment and decide to file a personal injury claim against the at-fault driver’s insurance company.

In this situation:

• You are seeking compensation from the responsible driver’s insurance.
• Your claim may include medical expenses, lost wages, and pain and suffering.
• Your own insurance company may not be responsible for paying the injury claim.

Arizona law may protect you from certain insurance premium increases because you did not cause the accident. However, insurance companies consider multiple factors when determining premiums. Your rates could change for unrelated reasons, including broader insurance pricing adjustments.

Can Your Insurance Rates Increase After a Not-at-Fault Accident in Arizona?

Arizona has specific laws addressing insurance premium increases following accidents.

Under Arizona Revised Statutes § 20-263, automobile insurers generally cannot increase an insured person’s premium because of an accident unless the insured caused or significantly contributed to causing it.

This means that if you were involved in an accident that wasn’t your fault, your insurance company generally cannot raise your premium based on that accident alone.

However, this protection does not guarantee that your insurance premium will remain unchanged.

Your rates may still change because of factors unrelated to the accident, such as:

• Changes in insurance company pricing
• Adjustments to your coverage or deductible
• Changes in your driving record unrelated to the accident
• Changes in your vehicle or household drivers
• Other legally permitted rating factors

If your insurance premiums increase after an accident you didn’t cause, consider contacting your insurer to request an explanation.

What Happens If You Were Partially at Fault for the Accident?

Arizona follows a pure comparative negligence system, which means more than one person can share responsibility for an accident.

Under A.R.S. § 12-2505, an injured person’s compensation may be reduced according to their percentage of fault.

For example, suppose you’re involved in a car accident and the investigation determines:

• The other driver was 80% responsible.
• You were 20% responsible.
• Your total damages were $50,000.

Under Arizona’s comparative negligence rules, your potential recovery could be reduced by 20%, leaving $40,000 in recoverable damages, assuming the other legal requirements are met.

But how does partial fault affect your insurance rates?

Because Arizona’s insurance protections distinguish between accidents an insured caused or significantly contributed to and those they did not, an insurer may have more grounds to consider an accident when determining premiums if you share responsibility.

However, being partially at fault does not automatically mean your insurance rates will increase. The outcome depends on the circumstances, applicable insurance laws, and your insurer’s rating practices.

Will Filing an Uninsured or Underinsured Motorist Claim Increase Your Insurance Rates?

Not every driver carries adequate insurance. If you’re injured by an uninsured driver or someone whose insurance coverage is insufficient to compensate you for your injuries, you may need to file a claim under your own policy.

Two types of coverage may be relevant:

• Uninsured Motorist (UM) Coverage
  • This coverage may help compensate you when an at-fault driver does not have applicable liability insurance or in certain qualifying hit-and-run situations.
• Underinsured Motorist (UIM) Coverage
  • This coverage may provide additional compensation when the at-fault driver’s liability insurance is insufficient to cover your qualifying damages, subject to policy limits and applicable law.

Because UM and UIM claims involve your own insurance company, many accident victims worry that using this coverage will cause their premiums to increase. However, making a claim under your own policy does not necessarily mean your insurance rates will rise.

Arizona’s protections regarding accidents you did not cause may still be relevant. Whether a particular premium adjustment is permitted depends on the circumstances and applicable law.

If you’re considering a UM or UIM claim, reviewing your policy and discussing your options with an attorney can help you understand your rights.

Can Filing a Personal Injury Claim Affect Your Health Insurance?

Personal injury claims can involve more than automobile insurance. If you suffer injuries requiring medical treatment, your health insurance may initially cover some of your medical expenses.

However, filing a personal injury claim generally does not directly increase your individual health insurance premium. Under the Affordable Care Act, health insurers offering ACA-compliant individual and small-group coverage generally cannot determine premiums based on your medical history or individual claims experience.

Still, there is another important issue to consider: health insurance reimbursement rights.

If your health insurance company pays for medical treatment related to an accident and you later receive a personal injury settlement, the insurer or health plan may have a right to seek reimbursement from your settlement. These rights depend on the type of health plan, applicable state or federal law, and the plan’s terms.

An experienced personal injury attorney can help identify potential reimbursement claims and determine how they may affect the amount you ultimately receive.

Does Receiving a Personal Injury Settlement Affect Your Insurance Rates?

Receiving compensation through a personal injury settlement does not automatically result in higher insurance premiums.

A settlement is intended to compensate you for damages resulting from an injury, which may include:

• Medical expenses
• Future medical treatment
• Lost wages
• Reduced earning capacity
• Pain and suffering
• Emotional distress
• Other qualifying losses

The amount you receive in a settlement generally does not determine your automobile insurance premium.

Instead, automobile insurers typically evaluate factors such as driving history, accident responsibility, coverage selections, and other legally permitted rating criteria.

It’s also important to understand that settling a personal injury claim and filing a claim under your own insurance policy are different processes.

Should You Avoid Filing a Personal Injury Claim Because You’re Worried About Higher Insurance Rates?

Some accident victims hesitate to pursue compensation because they fear their insurance company will penalize them. However, avoiding a legitimate personal injury claim can have significant financial consequences.

After an accident, you may face expenses that extend well beyond the initial medical bills. These can include ongoing rehabilitation, physical therapy, time away from work, and treatment for injuries that worsen over time.

If you decide not to pursue compensation, you could be left paying these expenses yourself.

Before deciding against filing a claim, consider the following:

1. You May Have Legal Protections

Arizona law provides certain protections against automobile insurance premium increases for accidents you did not cause.

2. Your Injuries May Have Long-Term Consequences

Some injuries require extensive treatment or lead to ongoing physical limitations. A personal injury claim may help you recover compensation for both current and future losses.

3. The At-Fault Party May Be Financially Responsible

If another person’s negligence caused your injuries, you may have the right to pursue compensation through their liability insurance.

4. Waiting Too Long Could Affect Your Claim

Under A.R.S. § 12-542, many Arizona personal injury lawsuits generally must be filed within two years of the injury. However, exceptions and shorter deadlines may apply, particularly when government entities are involved. Waiting too long could prevent you from pursuing compensation, regardless of how serious your injuries are.

What Should You Do If Your Insurance Rates Increase After an Accident?

If your insurance premiums increase after an accident you did not cause, it’s important to understand why.

Consider taking the following steps:

• Review your insurance renewal documents.
  • Compare your previous premium with your new rate and look for changes in coverage or pricing.
• Contact your insurance company.
  • Ask whether the increase is related to the accident or another rating factor.
• Request an explanation in writing.
  • Having documentation can help you understand the insurer’s reasoning and identify potential errors.
• Gather evidence showing you were not at fault.
  • Police reports, photographs, witness statements, and other documentation may help establish what happened.
• Consider contacting the Arizona Department of Insurance and Financial Institutions.
  • If you believe your insurer improperly increased your rates, you may be able to submit a consumer complaint.
• Speak with an attorney.
  • If your premium increase appears connected to an accident you did not cause, legal guidance may help you evaluate your options.

Frequently Asked Questions About Personal Injury Claims and Insurance Rates

Will my insurance go up if I file a personal injury claim in Arizona?

Not necessarily. Filing a personal injury claim does not automatically increase your insurance rates. Arizona law generally protects drivers from premium increases based on accidents they did not cause or significantly contribute to causing.

Does filing a claim against the other driver’s insurance affect mine?

Filing a claim against another driver’s liability insurance generally does not directly affect your own premiums. However, other circumstances related to the accident may influence your insurance costs.

Can my insurance company raise my rates if I wasn’t at fault?

Arizona law generally prohibits automobile insurers from increasing premiums because of accidents the insured did not cause or significantly contribute to causing. However, premiums may increase for unrelated, legally permitted reasons.

Will my insurance rates increase if I hire a personal injury lawyer?

Hiring a personal injury attorney does not, by itself, cause your insurance premiums to increase. An attorney can help you pursue compensation and communicate with insurance companies.

Does filing a pedestrian accident claim affect my car insurance?

If you’re injured as a pedestrian and pursue compensation from the responsible driver’s insurance, filing that claim generally does not directly affect your own automobile insurance premiums. If your own UM coverage is involved, additional policy and legal considerations may apply.

Can my insurance company cancel my policy after I file a personal injury claim?

Filing a legitimate personal injury claim does not automatically give an insurer the right to cancel your policy. Arizona law regulates automobile insurance cancellations and nonrenewals, and the insurer must have a legally permitted basis for taking such action.

Is it worth filing a personal injury claim after a minor accident?

Even an accident that initially appears minor can cause injuries requiring medical treatment. Whether pursuing a claim makes sense depends on the extent of your injuries, available insurance coverage, evidence of negligence, and potential damages.

How Can an Arizona Personal Injury Attorney Help?

Navigating insurance issues after an accident can be complicated, especially when you’re also recovering from injuries. An Arizona personal injury attorney can help you understand your legal rights and pursue compensation from the responsible parties.

At the Law Offices of Sonja Duckstein, we help injured individuals understand their options after accidents caused by negligence.

Legal assistance may include:

• Investigating the circumstances of your accident
• Identifying potentially responsible parties
• Reviewing applicable insurance coverage
• Gathering evidence to support your claim
• Communicating with insurance companies
• Evaluating medical expenses, lost wages, and other damages
• Negotiating for a fair settlement
• Pursuing litigation when appropriate

Understanding how insurance works can help you make informed decisions about your recovery and financial future.

Concerned About Filing an Injury Claim? Contact the Law Offices of Sonja Duckstein

If you’ve been injured in an Arizona accident, concerns about your insurance rates shouldn’t prevent you from learning about your legal rights.

While filing a personal injury claim does not automatically increase your insurance premiums, every accident and insurance situation is different. Understanding who was responsible for the accident, which insurance policies apply, and what protections Arizona law provides can help you decide how to move forward.

The Law Offices of Sonja Duckstein can help you explore your options and pursue the compensation you may be entitled to receive.

Contact the Law Offices of Sonja Duckstein today to discuss your Arizona personal injury claim. Visit www.accidentinjuryattorneyaz.com to learn more about your legal options.