On average, a car insurance premium increases by 40-50% after an at-fault accident. This can translate to hundreds or even thousands of dollars in extra costs over the next three to five years.
However, this figure can vary dramatically based on your insurance provider, your driving history, the severity of the crash, and your state’s laws.
While the financial shock of a potential rate hike is a major concern, it’s often secondary to the immediate stress of dealing with injuries and vehicle damage.
This guide explains the factors that control your insurance rates and clarifies how an experienced car accident lawyer can protect your financial interests after a collision.
If you worry about your insurance rates after an accident someone else caused, contact a St. George car accident attorney as soon as possible. If another party caused the accident and your car accident lawyer can prove it, they can explain your options and the next steps you can take to avoid or reduce an increase.
The Single Most Important Factor: Determining Fault
The first question any insurance company will ask is, “Who was at fault?”
The answer dictates everything that follows.
- If you are NOT at fault: The other driver’s liability insurance should cover your vehicle damage and injury costs. Your insurance rates should not increase. If the at-fault driver is uninsured or underinsured, you may file a claim with your own policy, which still should not result in a rate hike.
- If you ARE at fault: You will likely see a significant rate increase, known as a surcharge. This is because your insurer now views you as a higher-risk driver.
This is where a car accident lawyer becomes invaluable. Their primary role is to investigate the accident, gather evidence, and prove the other party was liable for your damages.
By successfully proving you were not at fault, a lawyer helps you secure compensation and, as a direct result, protects you from an unfair, fault-based premium increase.
Key Factors That Influence Your Rate Increase
Assuming you are found at least partially at fault, insurers use several factors to calculate your new premium:
- Severity of the Accident: A minor fender-bender with a $1,000 damage claim will have a much smaller impact than a major collision involving serious injuries and a totaled vehicle.
- Your Driving Record: A long-time driver with a clean record may see a smaller increase than a driver with previous accidents or traffic violations.
- Your Insurance Provider: Every company has its own internal algorithm. Some are more forgiving than others. This is why it’s crucial to shop for new quotes after an accident.
- State Regulations: Some states have laws that limit how much or for what reasons an insurer can raise your rates.
- Accident Forgiveness: Some policies include an “accident forgiveness” clause, where your rates won’t increase after your first at-fault accident. Check your policy documents to see if you have this benefit.
How Long Will an Accident Affect My Insurance Rates?
An accident surcharge is not permanent. Typically, an at-fault accident will affect your insurance rates for three to five years. After this period, if you maintain a clean driving record, the surcharge will be removed, and your rates should decrease.
However, the accident remains on your overall driving record for longer, which can influence quotes if you switch insurance companies.
Can I Prevent My Rates From Going Up After an Accident?
While you can’t change the past, you can take steps to manage the financial impact:
- Challenge the Fault Determination: If you believe you were wrongly assigned fault, do not accept the outcome. Contact a car accident lawyer immediately to discuss your options for proving your case.
- Shop for New Insurance: After the claim is resolved, get quotes from multiple other insurance carriers. A competitor may offer a significantly better rate, even with the accident on your record.
- Ask About Discounts: Speak to your agent about available discounts. Completing a defensive driving course or bundling your auto and home insurance can help offset the increase.
- Adjust Your Coverage: Consider raising your deductible. A higher deductible means you pay more out-of-pocket in a future claim, but it will lower your current premium.
Reduced Effects of Rate Increases
Rate increases may result from an accident, but there are things you can do to lessen the effects.
- Keep Your Driving Record Clean: The best defense against significant rate increases is to keep your driving record clean. Avoid infractions, drive defensively, and obey the law at all times.
- Enroll in a Defensive Driving Course: Drivers who finish a defensive driving course can receive discounts from many insurance companies. A driving defensive course can lower your risk of accidents and improve your driving abilities.
- Insurance Policy Bundling: You can frequently save money by combining your auto insurance with other policies, like renters’ or homeowners’ insurance. After an accident, this can help balance out the rate increase.
- Compare insurance quotes from several providers because they differ greatly. It’s a good idea to shop around and compare quotes from several insurance companies after an accident. Even if you’ve had an accident, you may find a company that offers better rates.
- Raising your deductible implies a higher out-of-pocket expense in a future crash. If you file another claim, you must pay more out of pocket.
- Talk about this with your agent: Consult your insurance representative about your choices. They can help you identify strategies to lessen the effects of rate increases and offer tailored advice.
FAQs About Car Insurance After Car Accidents
Should I report a minor accident to my insurance?
Report any accident, no matter how minor. If you don’t, the other driver could report it later or even file a lawsuit for injuries that didn’t appear at the scene. Failing to report the incident to your insurer could give them grounds to deny your claim or cancel your policy
Will a not-at-fault accident ever raise my rates?
Generally, a not-at-fault accident should not increase your premium.
However, in some states or with some insurers, multiple claims of any kind (including not-at-fault accidents or even comprehensive claims for theft/weather) within a short period can cause you to lose a claims-free discount, which feels like a rate increase.
What is the difference between a rate increase and losing a discount?
A rate increase, or surcharge, is a penalty added to your base premium for being a higher-risk driver.
Losing a discount (like a safe driver or claims-free discount) means you no longer meet the qualifications for that specific price reduction. The result is the same—a higher bill—but the mechanism differs.
If I pay for the other driver’s damages out of pocket, can I avoid a rate increase?
While tempting for minor accidents, never do this. You have no guarantee that the other driver won’t come back later and claim they were injured.
Once you involve insurance, you have the protection of the insurance company’s legal team.
A Car Accident Lawyer’s Role Is to Get You Paid, Not Negotiate Premiums
After a crash, your priority is your health and financial recovery. An experienced car accident lawyer fights to get you the maximum compensation for your medical bills, vehicle repairs, lost income, and suffering.
Don’t let an insurance company bully you into accepting less than you deserve or unfairly assign you fault. Protect your rights and your financial future. Contact a St. George personal injury lawyer today for a free consultation about your accident claim.
