There is a direct relationship between an individual’s driving record and how much an insurance company can justify charging for their coverage. The more tickets someone has on their recent record and the more crashes they have caused, the higher their premium will likely become.
Everyone in North Carolina who drives needs to pay for insurance, as liability coverage is mandatory. In a scenario where someone else causes a crash, the party affected by the wreck will typically expect that they can file a claim to recoup their losses.
Although that is often true, not everyone carries insurance as required by law, and even those who do may not have enough coverage to address a crash victim’s losses. If someone uses their own insurance policy to pay for the expenses from a car crash when they were not at fault for the wreck, does that mean their insurance premium will increase?
The outcome depends on the policy and the coverage
There is no short answer regarding how an insurance company will handle an individual using their own policy for crash coverage when they are not at fault for a wreck. The type of coverage someone uses can play a major role in whether or not the insurance company can pass those expenses back to the claimant.
Claims against comprehensive coverage and collision coverage may trigger premium increases, especially if the value of the claim is high. However, those who experience a hit-and-run crash or a crash caused by a driver without insurance or with bad insurance can sometimes make a claim without drastically altering what they pay for coverage in the future. Even though investing in extra coverage is a smart choice for the average driver in North Carolina, making use of it may not always be the most financially savvy decision. Whenever possible, it is usually preferable to hold the driver who was at fault for the crash responsible.
Many motorists may need help communicating with police departments to get them to prioritize a hit-and-run investigation. Others might know the identity of the uninsured or underinsured driver and will need assistance preparing a personal injury lawsuit. If a driver who is not at fault for a crash has an opportunity to take legal action against the driver at fault instead of using their insurance coverage, they can more effectively protect themselves from the consequences of somebody else’s negligence.
Learning more about one’s options after a major collision in North Carolina can help people to make informed choices about addressing the financial consequences inspired by the harm they’ve suffered. Seeking legal guidance is usually the best way to begin gaining that clarity in a personalized way.