Expert: Doctor Settlement - 10/18/2006

Question
I have had two very small comprehensive claims, both on a previous car that I have since sold. It was broken into and some sound system components were stolen. Should I be worried about rate increases if I have any more comprehensive claims in the future? I now have a pretty nice motorcycle, and I am worried about it since I don't own a garage. I'm not too worried about anything happening to my crappy toyota tercel, asside from maybe a windshield in the future if the rock chips become illegal.  

Answer
Dear Tim,

Here is a call out for any of our insurance agent experts to chime in and help on this topic inasmuch as they will know more that I do.  But I am pretty certain of the following, which I believe should answer your question.

You may be able to avoid any rate increase for two reasons.  First, your rates cannot be increased unless the accident or loss is "at-fault".  In other words, you are somehow at fault for the loss.

Second, most states have a minimum beneath which there can be no rate increases, even if the insured is at fault.  For example, in my state, the Insurance Commissioner has set that level at $750.  If the loss is less than that, there can be no rate increase, even if the insured caused the loss.

I would check with your state insurance commissioner http://www.settlementcentral.com/links.php
to find out what he has done in your state.  Another place to check is to call the underwriting department of your own insurance company and to ask them.  NO, you will not have to worry about somehow "alerting" them to your past claims.  Believe me, they already are keeping track of them!

Please note that if there is any way that you could be at fault, it might be only that you left your vehicle in a place of high crime where a reasonable person would expect a property crime against his vehilce.   That could be a possibility of negligence, but that is all I can see.

Best wishes,

Dr. Settlement, J.D. (Juris Doctor)
www.SettlementCentral.Com