Car insurance companies have figured out a way to charge you more for your car insurance after you have had an accident that was NOT your fault. That's right. Raise your rates if another guy hits you.
More and more auto insurance companies in Oregon are adopting a method by which they can charge their own insureds, that's right their own customers, more money when they get in an auto accident that wasn't their fault. It is against Oregon Insurance Division rules for a car insurance company to charge you points for a non-fault accident. The way they get around it, however, is by removing an Accident-Free or Claim-Free discount.
Some insurance carriers are so bold as to CHARGE YOU for a PRIOR PIP CLAIM. PIP stands for Personal Injury Protection. Oregon is unique in that every auto policy sold must have medical coverage for the passengers. It goes on to cover medical benefits for any household member who is involved in an automobile related accident. That passenger doesn't even have to be in his or her own car or one belonging to someone on the policy. No, it is ANY car.
Auto carriers are citing increased costs of medical claims under the PIP coverage as the reason for the sky-rocketing auto insurance rates over the last couple of years. That's why they are attempting to target those who use their policies to claim PIP benefits. They take away a discount. The discount usually applies to all the cars on the entire policy. So, if you have four cars on your policy and the discount is say 20%, you could see as much as a $450 increase for six months. That's $900 a year. That really happened to one of my customers! Stopped at a stoplight and BOOM! Rear ended! Not their fault. Now they are paying an extra $450 every six months for an accident that they didn't even cause.
If this happens to you, be sure that when you go to settle with the other insurance company who is responsible for reimbursing your medical bills and paying you for ongoing care, pain and suffering, that you also include a demand that they pay you for increased cost to your car insurance for the next 5 years! Yes, 5 years. Most carriers don't give the discount back for being claim-free or accident free for 5 years. And, in the example from above, that's $4500 in extra insurance costs.