How Much Does Car Insurance Go Up When You File A Claim After An Accident?

Road accidents can strike unexpectedly, leaving drivers vulnerable to financial penalties, medical bills, and expenses. Car insurance is essential in providing coverage for repairs and medical costs for all parties involved. However, having your insurance rate increase after an accident can be financially burdensome.

If you’re curious about how much car insurance rates rise after an accident, explore this article to gain insights into car accident policies and discover effective strategies to potentially lower them.

How Do Insurers Evaluate Your Driving Record?

After obtaining an auto policy, insurers delve into your driving record. Rates are determined based on your driving incidents and road violations, particularly if they were your fault. However, insurers typically focus on accidents within the last three to five years, and over time, older accident records have less impact on your insurance premiums as long as you maintain a clean driving history.

At-fault accidents, particularly instances like drunk driving, usually lead to higher insurance premiums that persist for three years after the claim. Moreover, serious driving violations can result in policy non-renewal by insurance companies.

Instances that could lead to policy cancellation include:

• Failure to pay the premium
• Committing fraud or providing inaccurate policy information
• Possessing a revoked or suspended driver’s license

If your insurer decides not to renew your policy upon its expiration, they will provide a notice explaining the reason, which varies depending on your state of residence. If you wish to renew your insurance, you can contact the insurance company’s consumer affairs division to request an explanation or seek further assistance from your state insurance department.

What Happens to Your Insurance After a Car Accident?

If you are found liable for a car accident, your property damage liability coverage will pay for the repairs and damages suffered by the other driver. 

Your bodily injury liability coverage, subject to coverage limits, will cover your medical bills, while any costs beyond that may require you to use your own funds. Having sufficient insurance coverage is essential to be prepared for unforeseen circumstances. If you are not insured, you could face serious financial problems.

Does Car Insurance Increase After Accidents?

Based on 2022 statistics, Collateral Protection Insurance (CPI) for car insurance increased by approximately 13.4 percent. Insurance companies determine premiums based on various factors related to the at-fault accident, such as your driving history, age, and location. 

Younger drivers, for instance, may face higher premiums due to their age group’s reputation for being less cautious and more aggressive on the road.

When you file a claim for an at-fault accident and your policy is up for renewal, your insurance rate is likely to increase. Additionally, if the damages from the accident amount to at least $20,000, your policy may see a higher rate. On average, full coverage policies can see premiums increase up to $840 after an at-fault accident. Previous driving history also plays a role, as multiple at-fault accidents can lead to higher policy rates.

Will My Rates Still Increase After a No-Fault Accident?

Even after a no-fault accident, car insurance rates may still increase. Your lack of liability doesn’t guarantee immunity from rate hikes. 

However, your insurer will be involved in the settlement discussions and may intervene on your behalf if you’re not at fault. If you were hit by another driver, you can file a claim under the at-fault driver’s insurance.

Tips on How to Lower Your Car Insurance Rates

Despite the possibility of increased car insurance rates, you can take steps to lower your policy costs:

Increase Your Deductible

Opting for a higher deductible can lead to more premium savings, as you assume a portion of the claim as an out-of-pocket cost.

Opt For Discounted Policy Rates

Some insurers offer discounts when you pay the full policy terms upfront, avoiding service fees.

Compare Car Insurance Quotes From Different Companies

Research various companies to find the best policy rate for your needs. Discounts and coverage options may vary, so consulting with a licensed agent is advisable.

Buy a Cheaper Car

More expensive vehicles tend to have higher policy rates. Opting for a cheaper car that is easy to maintain and repair can help reduce car insurance costs.

Seek a Car Accident Lawyer at Adamson Ahdoot

Have you or a loved one been involved in a car accident? Contact an experienced car accident lawyer at Adamson Ahdoot. 

Call us at (800) 310-1606 today to schedule your free consultation with a premier injury attorney. We offer free and no-obligation consultations in English or Spanish.