Higher Premiums, Deeper Pockets: Why Insurers Fight Claims Despite Rate Increases
Insurers may continue to fight personal injury claims despite higher premiums because the premiums they collect and the amounts they pay on individual claims are separate financial decisions. Insurers still have an incentive to limit claim payouts and may dispute who caused an accident, whether the accident caused an injury, how serious the injury is, or how much the claim is worth.
Is an insurer disputing your claim? Connect with HGSK Injury Lawyers today. Our personal injury lawyers in Lancaster can review the insurer’s stance, gather evidence supporting your claim, and push back against an inadequate settlement offer.
Rising Premiums Do Not Guarantee Easier Claim Payments
Pennsylvania’s Insurance Department (PID) reported that its 2025 rate review process blocked $227.9 million in proposed property and casualty premium increases, including $91 million in proposed personal auto increases. Insurers seek rate changes based on factors such as claims costs, repair expenses, and other losses.
Those rate changes don’t determine what an insurer will pay on an individual injury claim. An insurer can charge premiums based on its approved rates and still dispute whether a particular accident was covered, who was responsible, or how much the resulting injuries are worth.
Lancaster Personal Injury Claims Can Face Several Types of Disputes
After a collision on a busy Lancaster roadway, for example, an insurer may question whether its policyholder caused the accident. It may also dispute whether the crash caused a particular injury, whether treatment was necessary, or whether the records support the claim for lost income.
Our Lancaster personal injury attorneys can gather police and accident reports, photographs, witness information, medical records, employment records, and other evidence to address those questions. A well-supported claim gives the insurer less room to rely on unsupported arguments about liability or damages.
Pennsylvania Law Sets Standards for Handling Insurance Claims
Pennsylvania’s Unfair Insurance Practices Act identifies several claim-settlement practices as unfair when they occur often enough to indicate a general business practice. Under 40 P.S. § 1171.5(a)(10), these include:
- Failing to use reasonable standards for investigating claims
- Refusing to pay a claim without a reasonable investigation
- Failing to make a prompt, fair, and equitable settlement offer when liability is reasonably clear
The Pennsylvania Insurance Department enforces these standards, and the law generally does not allow individuals to sue an insurer directly under it. Even so, the standards can help show whether an insurer’s handling of a claim was reasonable. Insurers are allowed to investigate claims and question evidence. Our Lancaster personal injury lawyers can review the insurer’s communications and claim handling to determine whether the evidence and the law support its position.
When an Insurance Dispute in Lancaster May Raise Bad Faith Issues
Pennsylvania law provides a remedy when an insurer acts in bad faith toward its own policyholder. Under 42 Pa.C.S. § 8371, a court may award interest, punitive damages, and attorney fees and costs when an insurer is found to have acted in bad faith.
This remedy generally applies to claims against your own insurance company, such as an uninsured or underinsured motorist claim after a crash. It generally does not allow an injured person to sue the at-fault driver’s insurer for bad faith. A disagreement over the value of a claim also does not automatically establish bad faith. The policy, the facts, and the insurer’s conduct must all be examined before making that determination.
Our Lancaster Personal Injury Attorneys Will Not Let the Insurance Company Set the Value of Your Claim
Higher premiums do not guarantee that an insurer will make a fair offer after an accident. Our personal injury attorneys in Lancaster can compare a settlement offer with the available medical, employment, and accident evidence, identify losses that have not been fully documented, and negotiate with the insurer. Schedule your complimentary case assessment by calling HGSK Injury Lawyers at 267-551-8782 or filling out our submission form.