Is it legal for an insurance company to raise your rates 55% in1 year at renewal because of a claim?

UPDATED: Aug 28, 2011

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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


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 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.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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