By Pierce Blitch
When our clients face the aftermath of a car accident, one of their biggest concerns is whether filing a claim with their own insurance will lead to cancelled policies or higher rates. This worry is common but understanding the facts can ease these fears.
Understanding Your Insurance Coverage
In Georgia, every driver is required to have auto liability insurance with a minimum coverage of $25,000. However, there’s a widespread but false belief that the other driver’s insurance is obligated to cover your damages and act in good faith. Unfortunately, this isn’t the case. Liability insurance is primarily designed to protect an at fault driver by providing a legal defense and covering judgments against them up to the policy limit, should they be found legally liable for an incident.
The Role of First-Party Claims
When the other party is uninsured or underinsured, or their liability limits are exhausted, you’ll likely need to turn to your own insurance through what’s known as a first-party claim. This type of claim is between you and your insurer, governed by your uninsured/underinsured motorist (UM/UIM) protection. Unlike claims against another party’s insurer, your own insurance company has a legal obligation to handle your claim quickly, fairly, and honestly.
If the other driver’s insurance company is delaying repairs on your vehicle, filing a first-party claim with your own insurer, assuming you have comprehensive or collision coverage, can expedite the process. They are generally quicker at inspecting the damaged vehicle, managing repairs, and arranging a rental car.
Your Responsibilities as the Insured
As a policyholder, it’s crucial to report any incidents to your insurer promptly. Failing to do so can lead to denied claims or forfeited coverage, especially if you initially believed the other party had sufficient insurance but they actually did not, or their insurer denied coverage. Moreover, your contract with your insurer requires your cooperation during their investigation, which might include providing a recorded statement or documentation.
What Happens After Your Claim?
Even if your insurer covers your claim, they have the right to seek reimbursement from the at-fault driver’s insurer—a process known as subrogation. If they succeed, they will even refund your deductible, effectively costing you nothing for the claim.
Remember, your insurer cannot raise your rates, and your policy can’t be cancelled or non-renewed for an accident or claim that’s not your fault, unless it is the 3rd in a 36 month period. Reputable insurers generally will not penalize you for filing a claim for incidents where you were not at fault. Insurance is a safeguard for your peace of mind and it’s rational to use the protection you pay for through your premiums.
Ultimately, while the prospect of higher premiums or policy cancellation can be daunting, the protections provided by your own insurance are invaluable in times of need. It’s important to use the resources available to you and not shy away from making valid claims.
CALL THE Blitch Law Firm ATTORNEYS AT LAW TODAY TO DISCUSS YOUR PERSONAL INJURY CASE
We fight for you, and we don’t back down. Every personal injury case has potentially life-altering consequences. We don’t hold back on providing our clients the best possible representation. At The Blitch Law Firm, we understand the physical, emotional, and financial toll a personal injury case can take. If you, a family member, or a close friend has been injured due to someone else’s negligence, contact The Blitch Law Firm today at 706-434-8770 or visit us at 7004 Evans Town Center Blvd., Third Floor, Evans, Georgia 30809 to discuss your unique case and our dedicated personal injury strategies with one of our compassionate and experienced attorneys.
DISCLAIMER: The content on this site is offered solely for informational purposes and might not represent the current law in your jurisdiction. None of the details provided here should be interpreted as legal advice from The Blitch Law Firm or from the individual writer. Additionally, it is not meant to replace professional legal advice. Readers should not base their actions or decisions to abstain from actions solely on the information found in or available through this site. Instead, they should seek tailored legal or other expert counsel regarding their specific situation from an attorney or other professional authorized to practice in the reader’s state, nation, or other relevant licensing area.
Categories: Personal Injury, Uninsured/Underinsured Insurance