If I Make A Personal Injury Protection Coverage Claim (PIP), Can My Insurance Company Raise My Premiums?

NOTE: the following is not legal advice. If you have questions about your specific case, right to make a PIP claim or how to make a PIP claim, please consult with an attorney.

Generally speaking: Personal Injury Protection is a form of coverage offered to purchasers of motor-vehicle insurance and is governed by Maryland laws and the Maryland Insurance Code. The main function of PIP coverage is to serve as a way to help injured parties obtain reimbursement or payment for medical bills and monetary loss due to injury after an accident.  In the State of Maryland, PIP coverage is mandatory. That is, insurance companies are required to provide this basic form of coverage to all applicants at the time they apply for insurance unless those individuals choose to affirmatively waive coverage.  Pursuant to Maryland laws, which dictate the amount of coverage that must be provided, an insured who elects not to waive PIP coverage should expect that their automobile policy will hold at minimum, PIP coverage of up to $2,500.

Historically, there was always the potential that an insured individual could sustain a policy premium increase when making a PIP claim against his or her own policy. Insurance companies can and will raise premium rates for a variety of reasons. However, recognizing that insurance carriers were able to penalize insured individuals for benefits they were paying for, the State of Maryland in 2009 passed a law rectifying this matter.

In 2009, the Maryland General Assembly amended § 19-507(c) of the Maryland Insurance Article to prevent Insurers from raising insurance rates after a claim is made under this portion of the policy. The chief aim of this law is thus protect the rights of an injured person to make a claim for payment of medical expenses on their own insurance policy without the fear that their insurer will retaliate and raise their insurance rates. It protects their rights by enforcing the rule that a policy premium cannot be increased should a PIP claim be presented on your personal automobile insurance policy. The full changes to the law are summarized in a memorandum by the Maryland Insurance Administration and can be read here.