Car accidents can be stressful, leading to medical bills, vehicle damage, and lost time from work. Another significant concern many people have is whether their insurance premiums will go up after an accident. The unfortunate reality is that even if you’re not at fault, your insurance rates might still increase after an accident.
Insurance companies look more at the likelihood of future claims than who caused the crash. Once you’ve been in an accident in Washington D.C., especially if it isn’t your first one, your insurer may consider you more likely to file a claim again (even if you weren’t at fault). This view of long-term risk can lead to higher premiums moving forward.
Factors That Influence a Rate Increase After an Accident
Even the slightest crash can affect your auto insurance premiums, but the exact changes depend on various details surrounding the accident. Below are some of the main factors that insurance providers consider when adjusting rates.
At-Fault vs. Not At-Fault
If the insurer finds you responsible for the accident, you’ll likely face higher premiums. Drivers who aren’t at fault often avoid large rate hikes, although some insurers still raise rates slightly for any collision on your record. Being cited for breaking traffic laws, like speeding or failing to yield, can also signal risk to the insurer and lead to an increase.
Severity of the Accident
The damage involved in a personal injury claim can play a major role in how much your rates might jump. A minor fender-bender may cause a smaller change than a crash with major injuries or total vehicle damage. Insurance companies see more severe claims as a sign of greater future risk, resulting in larger premium hikes.
Type of Coverage
The coverage you carry – liability, collision, or comprehensive – also factors into potential cost increases. If you only have liability coverage, you might see a different effect on your premiums than someone with full coverage. Insurers consider how much they paid out for repairs, medical bills, or losses under each coverage type, and adjust costs to offset those risks.
When Your Rates Might Not Increase
It’s possible for your rates to stay the same after an car or truck accident under certain conditions. For example, if you’re not at fault and the other driver’s insurer covers all the damages, many insurance companies won’t raise your premiums.
You might also avoid an increase if the crash was extremely minor and didn’t need a claim, or if you have an accident forgiveness benefit in your policy. In these cases, your carrier might see the event as low risk or a one-time occurrence and leave your rate alone.
Preventing Insurance Rate Increases
Keeping your insurance rates steady after an accident can be a challenge. However, there are a few proactive steps you can take to lower the chances of a premium hike.
Paying Out of Pocket for Minor Accidents
If the damage is minimal and the cost to fix it is manageable, you might want to consider paying out of pocket rather than filing a claim. This approach can help you avoid a claim on your record. Before deciding, though, compare the out-of-pocket cost with your possible premium increase to see which option truly saves you more money.
Accident Forgiveness Programs
Many insurance companies, such as Progressive, offer accident forgiveness to eligible policyholders. These programs protect you from a premium increase after your first at-fault accident. Requirements vary by provider, and some states may limit availability, so read the fine print to be sure you qualify.
Shopping for New Insurance and Looking for Discounts
If your premiums increase, it may be worth comparing rates from other companies. You can often lower costs by bundling different types of insurance, installing safety devices, or signing up for a defensive driving course. Exploring these discounts and comparing multiple quotes are simple ways to find coverage that fits both your needs and your budget.
Dealing with the aftermath of a car accident can be complicated and overwhelming. If you have any questions, we can help you figure out what steps to take next that will give you the best chance of getting the compensation you’re entitled to and keeping your rates low. Contact Lightfoot Law, PLLC today to schedule a free consultation.