Does a PIP Claim Increase My Rate?

Personal Injury Protection, or PIP, originated in 1930 as a way to streamline the litigious nature of insurance claims for accidents. The hope was by moving the fault determination out of the overwhelmed court system and putting it into the hands of the negotiating insurance companies, the process would be faster, the resolution would be less costly and that premiums would be less expensive. Initially, insurance rates in no-fault states were lower then their litigious neighbors, but that was short-lived and typical auto insurance requiring personal injury protection tends to be more expensive. Another unfortunate side-effect is that a PIP claim can increase your rate even more.

There are many factors that influence your car insurance rates and quotes. Age, gender, experience, profession and driving history can either positively or negatively impact the rate you need to pay for auto insurance. If you are involved in an accident in a state that is no-fault, you cannot have your rate raised when you cause an accident because no one is at fault. However, by making a claim of any type against your auto insurance policy, the provider will consider you a risk and will need to find a way to protect themselves against future claims. That is why a PIP claim could indeed increase your auto insurance rate.

Regardless of where you live, your state mandates a minimum requirement of car insurance to legally navigate the highways and byways of your area. Some states are no-fault states that require the driver’s auto insurance company to pay for their injuries and the injuries of their passengers regardless of who caused the accident. To have insurance for that arrangement, a level of PIP or personal injury protection is required by law.

Despite the best of intentions, if the most careful and skilled driver can have an accident. If you put in a PIP claim your rate could indeed increase, but auto insurance is the law, so what can you do about it?