Insurance companies are required to file their rates and rules with state regulatory bodies such as the Department of Insurance. In most cases, they impose a surcharge or charge 'points' to driver's who have been charged with an accident and/or who have made a claim against their policy.So, there isn't a 'law' that dictates that an insurance company can increase your premiums due to an accident. It's just a matter of how the rates are filed and passed on to you as a result of an accident.Thank you for your interest in CarInsurance.com.