Your insurer can increase your premiums after a no-fault accident if an uninsured driver caused the accident. If the at-fault driver is not insured, the no-fault driver's insurance company is still responsible for paying compensation for damage or injuries to the vehicle. Car insurance rates increase by an average of 49% if you cause an accident. PIP is the only no-fault coverage available in Maryland.
It's like a fund for difficult days. Insurance companies can't increase their rates for using it, and that makes your life much easier. Because for the first week or two after the accident, while the doctor is treating you for your injuries, you won't have to worry about medical bills or lost wages. Your PIP steps in and takes care of everything until your lawyer resolves the insurance situation.
In general, insurance companies will look at several years of your driving history to determine the rate of your car insurance. Your rates will rise the most in your first renewal period after the crisis, and then they will return to normal after three to five years. When an at-fault driver doesn't have insurance, their insurance company is responsible for paying for injuries and damage to their car. Car insurance companies have found that drivers who have caused a recent accident are more likely to file another claim.
Because many drivers who are at fault for a car accident generally end up causing another accident, they are considered to be at greater risk. As with speeding tickets and most other offenses, no-fault accidents remain on your driving record for a certain number of years (the length varies by state). Even though it wasn't your fault, the accident is much more expensive for your insurance company when the at-fault driver isn't insured. In Maryland, your car insurance premium will also likely increase if you are found guilty of a road violation.
In general, Maryland is reported to have one of the lowest increases in premiums after a car accident. PIP starts paying for your medical bills and 85 percent of your lost wages fairly quickly after the accident. However, because you have no control over these rates, insurance companies may not increase your rate as much as they would in the case of an accident where you were at fault. This information is not an insurance policy, does not refer to any specific insurance policy, and does not modify any provision, limitation or exclusion that is expressly stated in any insurance policy.
For example, Washington prohibits insurance companies from increasing their rates after an accident that is not their fault.