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One question people often ask is, “Won’t my insurance rates go up if…..?” That question is usually asked after an automobile accident in the context of filing insurance claims.

Based on KRS 304.20-045 an insurance company cannot raise your insurance rates if you are not “at fault” for an accident. Specifically the statute states:

304.20-045 Increase in premium on automobile liability insurance policy —

(1) No insurer shall increase the premium on an automobile liability insurance policy solely as a result of a claim for an automobile accident filed by an insured if the insured was not at fault nor contributorily negligent.

However, the statute also anticipates that an insurer may raise rates in violation of section (1), and therefore provides a remedy stating:

(2) An insured may notify in writing the commissioner if the insured believes that an insurer has increased his or her premium in violation of subsection (1) of this section. The commissioner shall investigate the complaint, take appropriate action, and send written notice of his or her actions to the insured.

There are a couple things to keep in mind. The statute applies to any type of claim on an auto policy. Property damage, basic reparations benefits (sometimes called “PIP”), or uninsured or underinsured motorist coverage.

It is important that the insurance company does not put their insured at-fault, even a little bit. Sometimes and insurance company will put their own insured ten percent (10%) at fault. Why would they do this? Under this statute if they put their own insured at fault then they can justify raising the rates.

Filing a complaint with the Kentucky Department of Insurance is easy. You can file complaints online. Just go to the Kentucky Department of Insurance homepage and select “File a Consumer Complaint” from the “How Do I?” menu on the lower left hand side.

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