Why does car insurance get more expensive after a driver has had an accident in Boynton Beach?

Boynton Beach, FL – One of the most frustrating aspects of being involved in a car accident is the financial consequences that can follow drivers for years. Part of this problem is created by insurance companies, who want to find ways to recover any money that was paid out after a claim. All drivers can be assured that after a claim is filed against them, their provider will look for ways to recoup this money in some form. However, anyone who is having serious issues after an accident, or feels that their auto insurance provider is not acting in good faith should contact an attorney

Lawsuits against drivers at fault

If an insurance company has had to pay out money from a driver’s liability coverage, this means that there has been a lawsuit by the victim for all of the damage caused by the driver. Insurance companies have to pay for property damage and medical treatment through the policyholder’s liability coverage. This often ends in a settlement where the insurance company has to issue a check for all of these costs, as well as pay legal fees and other related expenses. 

The insurance company will try to recover some of these costs over an extended period of time by making the driver at fault pay more money for the same policy. It is frustrating to many people that insurance companies are allowed to charge drivers for additional risk when they were already paying into a policy that was supposed to protect them in case of an accident, but the industry is allowed to operate in this manner in the United States. 

Evaluating a driver’s risk of future accidents

Every time an insurance company receives a claim related to a driver, they may reevaluate the driver’s history and risk level. Things like car accidents, traffic tickets, total distance driven, the driver’s age, and even their credit score may be used to calculate risk. A driver with a history of multiple incidents will usually have to pay for a much more expensive policy, based on their idea that their past predicts more future accidents or traffic violations. Drivers can try to switch insurance companies to get a lower rate if they are considered high risk, but it is likely that other insurance companies will use the same data to calculate a policy rate. 

Getting in touch with a local law firm

The Law Offices of Jeffrey A. Rosenberg is available to help accident victims in Florida. Anyone who needs assistance in Boynton Beach or nearby parts of Florida can contact the firm to learn more. 

Firm contact info:

The Law Offices of Jeffrey A. Rosenberg

5255 North Federal Highway, 3rd Floor, Boca Raton, Florida 33487