After you’ve recovered from the immediate aftermath of a car accident, one of the most pressing questions you may have is if your insurance will go up. Car insurance can be expensive already and accidents are directly linked to higher coverage costs.
In relatively minor accidents, you might not even need to report it. Accidents only need to be reported to the police when bodily injuries occur or if $500 in property damage is exceeded. Unfortunately, it is incredibly simple to meet these standards and this means your accident will be recorded on your driving record and therefore reported to insurance.
That said, not all accidents will result in a higher insurance premium for you. There are a few key factors to consider, which we’ll go into more detail about now.
Fault vs. Innocence
A critical starting point is the difference between fault and innocence.
Generally, if you are the reason for an accident, then you are found to be at fault. This means you directly did something dangerous like failing to yield, rear-ending someone at a red light, or running a stop sign that caused a crash with another car.
When you are at fault, you are viewed negatively by insurance companies because you are now a riskier driver to insure. This results in the most severe increases to your insurance costs because now insurance assumes you may cause another incident in the future.
On the other end of the spectrum, being innocent in an accident can still cause your rates to go up. Making any claims and being involved in any accidents regardless of fault means more potential liability than a driver with no issues whatsoever. In turn, even innocent drivers are seen as riskier to insure.
Further complicating the situation is the fact that different states have varying laws regarding fault and negligence. This means you can be partially blamed for an accident and this can result in insurance companies treating you equally as a fully at-fault driver.
With this in mind, determining fault is crucial to receiving compensation during a claim but it won’t always prevent your insurance rates from going up.
Accident Factors
Another consideration is the circumstances of the accident. While any accident is likely to raise your insurance, how much it is affected is partially determined by what type of accident happens.
A crash with another car where you were to blame will have the greatest impact. Accidents where you were partially at fault or even completely innocent will have a lesser yet still significant increase.
On the other hand, you may have less serious accidents. Car maintenance is essential to preventing car accidents. These incidents may be filed under a comprehensive coverage claim rather than one stemming from a car-on-car collision. Examples of this include hitting wildlife or hydroplaning during a rainy day and hitting a highway barrier.
Comprehensive claims still count as a crash, so they are likely to raise your insurance despite not involving another car. That said, the effect will be far less significant than a crash with another driver.
This means the factors of your accident are necessary for determining how much your insurance goes up.
Driving History
Lastly, your driving history will affect your insurance rates after an accident.
Insurance companies rely on your driving record to evaluate how risky you are to insure. More tickets and accidents mean greater risk, which translates to higher premiums for you.
In particular, accidents tend to stay on your driving record for three to five years. You will experience the greatest increase in your insurance costs during your first premium renewal following an accident.
As you approach the point where the accident falls off your record, your insurance costs will gradually decrease until it is no longer affected by your accident.
What can complicate this is if you get into another crash or continue to rack up tickets. This will effectively extend your period of risky driving and keep your premiums high.
Take this into consideration and understand that an accident has long-lasting consequences on your insurance. With better driving habits, this impact will eventually fade.
Closing Thoughts
Car accidents are painful and stressful to experience. What can make the situation more frustrating is when you face increased insurance costs as a result of a crash.
You are highly likely to experience increased annual premiums regardless of who caused the accident and how it happened. That said, fault, the circumstances of the crash, and your driving record are relevant for determining how much your insurance is raised. Car insurance cover helps to pay for repairs to your car and medical expenses if you are involved in a car accident.
Should you run into higher insurance bills because someone else caused an accident, you deserve better treatment and a lower cost. Patient healthcare practices during COVID for car accidents may include telemedicine, drive-thru testing, and curbside pickup of medications. Consider exploring quotes from other insurance companies or earning discounts through bundling coverage and using driving monitoring technology to help cut back on insurance expenses.
