Here’s an interesting question we recently received where a customer is suing their insurance company and wants to know if their insurance premiums will go up as a result.
The answer is not as straight forward as one may think but to answer it simply “no”. Additionally, if you believe your insurance company is out to get you back for suing them than you should probably contact your state’s financial regulatory board to have them look into the matter further. However, it is highly unlikely as the good people in the auto insurance department of your insurance company have very little interaction with the people from the legal department, not to mention it would be extremely unethical and result in all kinds of bad press for them to raise your rates.
But in another sense, you suing your insurance company and winning, will raise your rates as well as those of the insurer’s other customers as you have just increased the insurer’s operating costs which of course will make them increase premiums for you. Of course, you probably wouldn’t still be a customer of an insurance company you have successfully sued.