I was rear ended and the other driver took full responsibility and paid all bills so why did my premium jump 150$

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Jun 26, 2013

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Insurance Question from Hull, MA

Asked on 06/26/2013

I was rear ended and the other driver took full responsibility and paid all bills so why did my premium jump 150$ I was at complete stop when I was rear ended. The other driver admitted he was at fault and his insurance company paid for everything.My car is only worth about $2000 and they now want me to pay $ 925 a $150 increase. It seems I am being penalized. And should I be paying all this insurance . Thanks

Answer given on July 23, 2013

If you were rear ended in an accident and the other insurance company paid for all of the damages to your car, then your insurance rates should not be affected.You need to talk to your agent or insurance company about the rate increase. If you did not report the incident to your insurance company, they may not know that you settled the claim with the responsible driver. The accident may have appeared on your driving record and they surcharged the policy for the accident.If that is the case, they will remove the surcharge when you explain the situation to them.It is also possible that there was a general rate increase taken by your insurance company, and this is in no way connected to the accident. Again, you need to talk to your agent or insurance company and have them explain the reason for the increase. If it was a general rate increase you may want to shop around for other insurance to see if you can do better.

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