FAQ: Does Your Insurance Increase After an Accident That's Not Your Fault?

Insurance Premium Adjustments Following an Accident

Insurance policies and regulations vary widely among different insurance providers.

Some may have lenient policies regarding not-at-fault accidents, while others may have stricter guidelines.

Will an Accident Increase My Insurance Premium?

So, the question remains.

Do car insurance rates go up after accident involvement?

Yes, but not most of the time.

If you’re not at fault, you might not see an immediate or any increase in your premium.

Plus, your insurer could cover any additional costs associated with the accident if you’re not at fault.

The situation is different for at-fault accidents, where the driver responsible for the accident has to bear additional costs.

The premiums of an at-fault party will most definitely hike up.

When purchasing car insurance coverage, insurance companies consider various factors before setting premiums.

For example, having a record of an at-fault accident or leaning toward high-risk demographics can lead to an increase in your premiums.

However, it doesn’t mean drivers who aren’t at fault never see an increase.

Insurance companies could still adjust your premiums after a not-at-fault accident if the company paid out a significant sum for the accident.

Why Do Insurance Rates Go Up After an Accident?

There are several reasons why auto insurance rates shoot up following an accident, even when you’re not at fault:

• Increased Risk: As mentioned earlier, insurance companies consider several factors before determining your premiums.
  • When insurers notice that you have a record of multiple accidents or traffic violations, they might classify you as high-risk.
• Cost of Repairs: Even if you’re not at fault, your insurance company might have to cover repair expenses.
  • Depending on the extent of the damage, this cost could range from hundreds to thousands of dollars.
• Type of Accident: Some accidents are more severe than others and may have a higher probability of occurring again in the future.
  • If this is the case, insurers may decide to hike your premiums as a precaution.

How Can You Lower Your Premium After an Accident?

Having accident forgiveness coverage can be an excellent way to avoid a hike in your premium after a not-at-fault accident.

This benefit allows you to keep your current rates following an accident.

Alternatively, if you’re unhappy with your insurer’s decision, you could also try shopping around for better insurance options.

Many companies specialize in offering insurance coverage to drivers with imperfect records.

If you’d rather stick with your current insurer, you could ask your insurance provider to see if you could update your coverage choices.

Opting for a higher deductible or changing coverage limits could help lower your premium.

How Is Fault Determined in a Car Accident?

Since we already know that the insurance adjustment after an accident depends on who is at fault, it’s essential to understand how fault is determined by the insurance provider.

The Drivers Decide at the Accident Scene

In some cases, one of the drivers involved in the accident admits fault.

In such a situation, the police determine and document the admission of guilt in their report.

It’s common for some drivers to take responsibility for the accident, even when they’re not at fault.

Most of the time, they’re so shaken up by what happened or intimidated by the opposing driver that they immediately admit fault without thinking.

This occurrence is the reason why lawyers always advise drivers to stay calm and not make statements that the other party can use against them.

Admitting fault in a car accident could do more than increase your insurance rate — it could also negatively impact any legal action you may take in the future.

The Police Report

If neither of the two drivers admit fault, the next step is for law enforcement to investigate and determine who was at fault.

The police officer on-site will assess the accident scene, speak to witnesses, and document any evidence.

The police report is essential evidence regarding insurance adjustments after an accident.

It provides a detailed description of the accident and can help determine fault.

In some cases, the insurance company relies on the information in the police report to determine who is at fault.

The Insurance Company Decides

In most cases, auto insurance companies conduct their investigations to determine fault.

They may use the police report, statements from drivers and witnesses, and any available evidence, such as photos or video footage, to point them in the right direction, but ultimately, they make the final decision.

Keep in mind that insurance companies have their interests at heart and may not always rule in your favor.

It’s essential to consult with a car accident attorney to ensure your rights are protected and that you receive fair treatment from your insurance company after an accident.

The Arbitration Is Involved

Arbitration is when neutral third parties review the evidence and decide who’s at fault.

This approach is usually used when both drivers have different accounts of what happened in the accident or if the insurance companies can’t reach an agreement.

If arbitration is involved, it’s essential to have legal representation to ensure your side of the story is accurately represented and considered during the process.

The Jury Decides

Taking your case to court is the last resort if you and the opposing party can’t come to an agreement on who was at fault.

A jury will review all the evidence presented by both sides and make a final decision.

Going to court over a car accident is generally not ideal, as it’s time-consuming and costly.

It’s best to exhaust all other options before taking this step.

Could Your Premium Still Increase Even if You're Not at Fault?

As established earlier, your insurance premium might not increase after an accident if you’re not at fault.

However, we also glossed over the fact that it could still increase if the insurance company paid out a significant sum for the accident.

In some cases, even if you’re not at fault, there are circumstances when your insurance provider will still increase your premium.

Multiple Claims

Every time you file a car insurance claim, your insurer has to pay out money.

As stated earlier, if you’re not at fault, your insurer may also have to cover the repair expenses of the other driver’s vehicle.

This payout adds up and could lead to an increase in your premium.

However, filing multiple claims in between short periods could also be a red flag for insurers.

This pattern of frequent claims could indicate to them that you’re a high-risk driver.

Underinsured At-Fault Driver

Even though a comprehensive auto insurance policy is essential before a driver takes to the road, some people still opt for minimum coverage.

If you’re unfortunate enough to be in an accident with one of these drivers, your insurance provider may have to cover more than they usually would, especially if you don’t have uninsured motorist coverage.

State Laws and Insurance Policies

In some cases, you won’t have much choice or control over paying more for your premium, especially if local laws and your insurance policy allow it.

Insurance policies can be lengthy and complicated, but it’s essential to understand the details and know what you’re covered for before signing on the dotted line.

You could also consult a personal injury lawyer to know if there are any statutes or laws allowing insurance companies to increase premiums after an accident, even if you’re not at fault.

Handling Insurance Claims After an Accident

Talking with insurance adjusters after an accident can feel hopeless and intimidating.

Keep in mind that insurance adjusters will always side with their company, so it’s essential to be cautious and protect your rights.

Here are some tips on handling insurance claims after being involved in a not-at-fault accident.

Document Everything

The only way you can protect your rights and get fair compensation is by having all the evidence to back up your claims.

Keep every piece of paper, photos, and any other documentation related to the accident, make copies if necessary, and keep them organized so you can easily access them when needed.

If you were injured and decide to hire a lawyer, keep them updated with all the evidence and documentation you have gathered.

They’ll usually make their own copies, but it’s always good to have a backup.

Check Your Insurance Policy

As stated earlier, insurance policies are lengthy and often filled with jargon that’s challenging to decipher.

Regardless, knowing what you’re covered for and what you’re not is critical.

For example, your policy may include collision coverage or rental reimbursement coverage, which will cover the cost of renting a car while yours is being repaired.

You may not know you have this coverage unless you read your policy carefully.

If you need help understanding your policy and coverage limits, don’t hesitate to contact your insurance provider or insurance agent.

Speak With Your Insurance Agent

Your insurance agent could help you navigate the claims process and provide valuable insight on handling insurance adjusters.

They are vested in keeping you as a client, so they may be willing to help you get fair treatment from your insurance company.

However, it’s important to remember that insurance agents still work for the insurance company, not for you, and their loyalty ultimately lies with their employer.

Contact a Car Accident Lawyer If You Are Injured

As established, taking your case to court should be your last resort.

If the other driver or their insurance company refuses to cooperate and compensate you for your injuries, it might be time to consult with a car accident lawyer.

Experienced personal injury lawyers have extensive knowledge and experience dealing with insurance companies and can help you negotiate a fair settlement or take your case to court if necessary.

They can even help you estimate the value of your claim, considering medical expenses, lost wages, pain and suffering, and other factors.

If your claim reaches court, your lawyer will represent you and present all the evidence to support your case.

They can also handle communication with insurance adjusters on your behalf, giving you peace of mind during a stressful time.

Insurance Adjustment After an Accident Can Be Tricky

Because of the insurance industry’s varying rules and lack of standardization, dealing with the hiking car insurance premiums after an accident can be frustrating.

The best way to deal with this issue is to deal with it before an accident occurs by asking your insurance agent all the questions you have about coverage, deductibles, and how an accident could affect your premiums.

This proactive approach will save you the hassle and confusion if you ever find yourself in a situation where your premiums increase, even though you’re not at fault.

Working with a lawyer can also help you understand the intricacies of insurance policies, handle communication with insurance adjusters, and ensure that you receive fair compensation for any damages or injuries.

TorHoerman Law: Experienced Car Accident Lawyers

Being in a car accident can be overwhelming, and the insurance claims process that follows can be confusing.

If you’ve been injured in a car accident at no fault of your own, you may be eligible to file a claim and seek compensation.

Reach out to our lawyers for a free consultation.

You can also use the chatbot on this page for an instant case evaluation.