Expert: Doctor Settlement - 5/12/2006

Question
I have been living out the country for the past 2 years, 6 months prior to leaving the US I made a comprehensive claim for flood damage to my cars engine roughly a 7K claim. Will this affect my rates when purchasing insurance when I return home to the US? I have had no tickets in the past 3 years or acccidents claims in the past 5 years, and have been insured with auto insurance in my current country of residence.  

Answer

Hi Craig,

Will your claim affect your rates?  Well . . . . that depends.  Did you run your vehicle thru a hub-deep water hazard? My company will not change my rates for that (yeah, I DID do that, to the tune of a $1,450 engine repair).  And most companies can only charge increased rates for "at-fault" accidents.

But it depends upon the filings at the office of your state insurance commissioner.  I suppose that it IS possible for your company to consider "at-fault" in comprehensive losses.  But they would have to have listed that authority with your state insurance commissioner first in order to do so.

The insurance commissioner should have a definition of what constitutes "at-fault" on record, and of course the minimum level (usually around $750 max. of repairs) has been exceeded, so you would qualify.

But absent that unusual case, the answer is NO.  They cannot just raise your rates because you claim what is rightfully yours under the policy you have been paying for.  You paid to be insured against certain hazards, and flooding is one of them.  

If it does affect your rates, then contact your state insurance commissioner  http://www.settlementcentral.com/links.php

Best Wishes,

Dr. Settlement, J.D.
www.SettlementCentral.Com