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  1. #1
    Join Date
    Oct 2006
    Posts
    10

    Question How does an insurance claim impact a driving record and insurance premiums

    I'm wondering if someone can answer the following *hypothetical* question about how a claim impacts a person's driving record and insurance premiums?

    Let's say I'm your average driver with a good driving record in NH and insured with Geico. I am involved in an auto accident where I am 100% at fault and one person in the other vehicle suffers relatively minor car damage, but is injured, has a fair amount of medical bills and files a medical claim as well as a property damage claim against my insurance. Now let's say there are 4 possible outcomes to this scenario:

    1. the other person settles a claim with my insurance on their own for $20,000.

    2. the other person settles a claim with my insurance for $32,000

    3. the other person hires an attorney who settles a claim with my insurance for between $20-$32K OR subtantially more than that...say $45-50K.

    4. the other person hires an attorney who can't come to an agreement with my insurance, files a lawsuit and either then comes to a settlement or is forced to go to court to settle the claim.

    I probably could have asked it better, but basically if I am the at-fault insured, what impact does the dollar amount of this claim against me have on my driving record, my record with the insurance company and potentially my premiums (think Geico insurance here)? And then what is the impact if an attorney gets involved, if the case is filed in court and if the case actually goes to court?

    If the most likely scenarios are that the other person will settle a claim on their own for between $20-30K OR hire a lawyer who will settle the claim without filing or going to court for $25-40K, is the impact the same to me (record, rates, etc.)...or at least negligible? Is the damage already done regardless of the amount and whether an attorney enters the picture (within a certain range of course. I suspect maybe if an attorney can argue and win a much larger amount maybe there is more impact to me, but that's why I'm asking. I just don't know.)?

    Hope that makes sense...

  2. #2
    Join Date
    Jul 2006
    Location
    Ohio
    Posts
    1,126

    Default Re: NH: How does an insurance claim impact a driving record/insurance premiums

    I don't know GEICO's underwriting criteria. Generally, though, an accident is an accident is an accident. So, regardless of whether the payout is $20k or $32k, your insurance rates will increase by the same amount.

    You don't mention AT ALL what your liablity limits are, so there is a chance that, if you have state minimum liablity of $25/50/25, that, with a $32k claim, your insurance company will only pay $25k, and you are personally responsible for the rest ($7k).

  3. #3
    Join Date
    Oct 2006
    Posts
    10

    Default Re: NH: How does an insurance claim impact a driving record/insurance premiums

    That's all I needed to know. It was a reverse scenario, actually. I wanted to know how my claim against someone else would impact their rates if the settlement ended up being between the $20-32K. Not that I would alter my request based on the impact to the person who slammed into me, but I did request she provide a witness statement and wanted to be truthful by saying that her statement isn't going to change the impact of what has probably already happened to her rates.

    Anyway, she agreed to give me the statement so all is good now. Thanks for the answer

  4. #4
    Join Date
    Jul 2006
    Posts
    392

    Default Re: How does an insurance claim impact a driving record and insurance premiums

    I would think that insurance premiums go up based on who's at fault, not the outcome.

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