Auto Insurance Forum

I slid off the road on ice and hit a guardrail. Fortunately, I didn't hit anyone else, but unfortunately the damage to my Camaro was more than $8,000. My insurance company paid for the damage, but they have since increased my premiums by 50 percent. Can they do this?

Dear Helen,

The short answer is yes, they can do this. However, a 50 percent increase is certainly out of the norm. It could be caused by a number of factors, including: whether this accident is one of several you have had over the past several years; whether other drivers on your policy have been involved in accidents; whether you have added a high-risk driver to your policy; and whether the company has received approval for a rate increase for all drivers in your rate classification. In general, a single accident such as the one you described without alcohol being involved is rarely the sole cause for a 50 percent increase in auto insurance rates.

I suggest that you contact your insurance company to determine the reason for the increase. Of course, you may also choose to shop around for more cost-effective coverage.

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