Raise My Premium?

Insurance company raising your premium.

Can my insurance company raise my premium?

Any time you file a claim with your insurance company, the number question you ask yourself is, “is my insurance company going to raise my premium?”

We recently received a call from a client who was worried that, if he used his medical payments coverage, his insurance company was going to raise his premium, or worse, cancel his policy.  This is a common question.  Let’s see what Colorado law says about raising your premium or canceling your policy. 

The Law

According to the Colorado Division of Insurance, insurance companies CANNOT refuse to write, cancel, fail to renew, reclassify an insured under, rate a new applicant, reduce coverage under, or increase the premium for any complying policy for any of the following reasons: 

  1. If you had an accident that wasn’t your fault; 
  2. If you made a claim against your comprehensive coverage, unless your negligence caused the claim;
  3. If you made a claim against your medical payments or uninsured motorist coverage; or 
  4. You got a ticket but you weren’t convicted.

There are some other exceptions where an insurance company cannot raise your premiums or cancel your policy that apply in much fewer situations.  Click here if want to know more.    

Roadside Assistance

Also, you shouldn’t hesitate to use your roadside assistance coverage to have your car towed.  Insurance companies similarly cannot use that as an excuse to raise your premiums or cancel/fail to renew your policy.  

We get clients all the time that are afraid to file a medpay claim or an uninsured/underinsured claim.  Given insurance companies’ behavior, we can’t blame them. 

One horror story we heard from our client is that he called his insurance company to verify if his premiums would go up if he filed a medpay claim. Without flinching, the insurance agent plainly said yes. This was clearly not the case and the scary part is that this happens all the time.

File a Complaint 

If you or someone you know has been misinformed about the law by an insurance company employee, get that person’s name and/or employee ID number, document the date and time, and get a confirmation number for that call if it exists.   Then, we encourage you to contact the Colorado Division of Insurance and file a complaint against that insurance company.