Car insurance companies occasionally adjust their premium rates, considering different factors that demonstrate your overall risk as a driver. Two significant factors insurers assess are your past loss experience and prospective loss experience, both within and outside of Delaware. When evaluating past loss experience, insurers review your claims history. Filing multiple claims may lead insurers to view you as a higher risk, regardless of fault. Alternatively, prospective loss experience looks at the likelihood of future claims based on your history. If your level of risk is deemed to be high, your rates may be adjusted accordingly.
While your insurance premium may increase due to a higher risk level, Delaware law does provide some protection. Specifically, 18 Del. Admin. Code 609-5.1.1 prohibits insurers from raising your premium solely because you were involved in an accident for which you were not at fault. However, insurers can still consider your overall claims history and the probability of future claims when adjusting rates. Ultimately, while your previous accidents and potential future claims may influence your premium, your rates cannot increase merely because of an accident you are not responsible for.
18 Del. C. § 3708
18 Del. C. § 2503
For more information about this article or to speak to someone about a motor vehicle accident or worker’s compensation, please contact Laura Simon at [email protected].