Is it legal for an insurance company to raise your rates 55% in1 year at renewal because of a claim?
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Is it legal for an insurance company to raise your rates 55% in1 year at renewal because of a claim?
My husband had an accident 7 months ago and now that our renewal is coming up they want to raise our rate 55%. We have had this medical insurance for a long time.
Asked on August 28, 2011 Pennsylvania
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Unless the state of Pennsylvania has a law or regulation in effect though its Department of Insurance limiting the percentage of increase that an insurance company can charge an insured, then there is no prohibition for a given medical insurance carrier to raise one's rates fifty-five percent (55%) at the end of the insurance policy's term.
Unfortunately, this is the result of the free market place when one is involved in an accident that results in significant injury.
One way to try and minimize the rise in health care insurance is to see if your husband (and yourself) can somehow get with a group of other people in a plan for medical insurance as opposed to having an individual policy.
Another option is to contact your insurance representative about ways to possibly keep the same policy, type of coverage and to keep the rate increase at a minimum.
Good luck.
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